Bit Digital (Nasdaq: BTBT) plans to fully wind down its Bitcoin mining operations as it doubles down on Ethereum and artificial intelligence–focused strategies, the company said in a letter to shareholders on Thursday.
CEO Sam Tabar wrote “Mining was effective in an earlier business strategy, but over time it became a less efficient use of capital relative to opportunities that allow for active participation, yield generation, and operational leverage,”
“At the same time, we consolidated our digital asset exposure into Ethereum and prioritized our AI infrastructure exposure through our majority stake in WhiteFiber,” Tabar wrote. “These decisions repositioned Bit Digital around infrastructure we can operate, monetize, and compound over time.”
Bit Digital entered Bitcoin mining in 2020, initially operating assets in China and the U.S. The company briefly mined Ethereum in 2022 before the network’s transition to proof-of-stake, the same year it began accumulating and staking ETH.
The firm has also been an early mover in diversifying beyond mining. In 2023, it launched Bit Digital AI, becoming one of the first crypto mining companies to pivot toward high-performance computing ahead of the broader industry shift into HPC operations.
Tabar first signaled a potential exit from Bitcoin mining in June 2025, when Bit Digital repositioned itself as a “pure-play” Ethereum treasury and staking company while continuing to expand its AI and HPC businesses through subsidiaries and partnerships. In the months that followed, the company sold mining assets, allowed hosting contracts to expire, and retired outdated equipment.
In August, WhiteFiber — a separate HPC subsidiary of Bit Digital AI — raised nearly $160 million in an initial public offering. Bit Digital currently owns approximately 27 million shares of WhiteFiber, which Tabar described as a core strategic asset rather than a financial holding intended for trading.
On the treasury side, Bit Digital held 153,546 ETH as of July, valued at about $428.8 million, with the majority staked. According to The Block’s data, these holdings give the company an mNAV of 1.93, meaning BTBT is trading roughly 90% above the net asset value of its underlying ETH. In October, the firm added another 31,057 ETH using proceeds from an upsized $135 million convertible note offering.
“Capital markets are increasingly rewarding infrastructure that is productive, durable, and actively deployed,” Tabar wrote. “Our exposure to Ethereum and AI is aligned with that shift.”
Tether co-founder Brock Pierce purchased $1 million worth of Bit Digital shares around the time the company announced its Ethereum treasury strategy last year, adding to his exposure through investment firm Percival Services. Pierce has served on Bit Digital’s board since 2021.
Source: TheBlock Edited by Bernie
