- Bit Digital invests $53.2M in North Carolina facility to expand into AI and HPC.
- $40M Quebec data center upgrade supports 5MW AI colocation with Cerebras.
- Over 40% of public miners sold Bitcoin in March amid a shift toward AI.
Bitcoin mining firm Bit Digital is ramping up its diversification strategy by acquiring an industrial facility in Madison, North Carolina, valued at $53.2 million. The move underscores the company’s continued shift into artificial intelligence (AI) and high-performance computing (HPC), areas it has been exploring since at least 2023 to broaden its revenue sources beyond cryptocurrency mining.
Under new regulatory filings, the company is acquiring Bit Digital through Enovum Data Centres Corp., Bit Digital’s wholly-owned Canadian subsidiary. The deal involves an upfront deposit of $2.25 million, of which $1.2 million is not refundable. The transaction will be completed on May 15.
Bit Digital Expands North American Infrastructure Operations
Bit Digital is also ramping up North American infrastructure. The company also revealed a new Tier 3 data center launch in Quebec, Canada. During the early days, the agreement will amount to 5 megawatts of support to the colocation platform of Cerebras Systems, a reasonably high-frequency AI infrastructure provider. Upgrades of approximately $40 million are underway at the Quebec facility to meet Tier 3 standards, or robust specifications that guarantee high reliability and uninterruptibility.
In response, Bit Digital CEO Sam Tabar said it was the “continued momentum” in the strategy to bring purpose-built AI infrastructure to scale.
As crypto mining firms face falling economic pressure, they are pivoting to AI and HPC. Due to the highly volatile nature of digital asset prices and the presence of Bitcoin halving cycles, which reduce mining rewards, companies have had to repurpose their infrastructure for alternative uses with heavy data demands. Hive Digital has repeatedly stressed that such data centers can generate more revenue than traditional mining operations, focusing on the industry.
Over 40% Sold Holdings in March
These are the diversification strategies, considering broader trends within the sector. TheMinerMag also reports that over 40% of public Bitcoin miners sold their holdings in March, indicating financial stress throughout the industry.
The most vulnerable among companies are those that cannot effectively control their operational cost; consequently, executives are making extra efforts to tap new revenue channels. CoinShares reported in October that in a harsh and unforgiving market, it’s the least profitable miners switching to capabilities like AI and similar computing requirements if they wish to stay in business.
