Bit Digital has officially exited the Bitcoin mining business, pivoting fully to Ethereum investments and AI infrastructure development.
Quick Summary – TLDR:
- Bit Digital has fully shut down its Bitcoin mining operations to refocus on Ethereum staking and AI infrastructure.
- The company now holds over 153,000 ETH, valued at more than $428 million, with most of it staked.
- Bit Digital owns 70% of AI firm WhiteFiber, which raised nearly $160 million in an IPO.
- CEO Sam Tabar said Bitcoin mining was no longer efficient compared to higher-margin sectors like AI.
What Happened?
Bit Digital began mining Bitcoin in 2020 but has now completely abandoned the practice. The company made the call after determining that mining had become a less profitable use of capital. Instead, it has redirected its focus to accumulating and staking Ethereum, while investing in AI and high-performance computing (HPC) via its majority-owned subsidiary, WhiteFiber.
Bit Digital has reaffirmed its long-term investment in @WhiteFiber_ and confirmed that it will not sell any of its WhiteFiber shares in any secondary offering or other discretionary disposition during 2026.
— Bit Digital, Inc. NASDAQ:BTBT (@BitDigital_BTBT) January 28, 2026
KEY HIGHLIGHTS
– Following WhiteFiber’s initial public offering in… pic.twitter.com/4V2GrAoGaV
Strategic Exit from Bitcoin Mining
According to CEO Sam Tabar, the decision to shut down mining operations was made in mid-2025, following a reassessment of capital efficiency. Over the months that followed, Bit Digital sold off its Bitcoin assets, terminated hosting contracts, and decommissioned outdated mining equipment.
Tabar explained in a shareholder letter:
Bit Digital was among the first in its sector to announce its mining exit, and while the move was initially controversial, it now appears aligned with broader industry trends. By November 2025, 7 of the 10 largest public miners were also generating revenues from AI and HPC.
Deep Dive into Ethereum and Staking
Bit Digital has consolidated its digital asset portfolio entirely into Ethereum, with a strong emphasis on staking to earn passive income. As of July, the company held 153,546 ETH, now worth over $428.8 million, most of which is staked. In October, Bit Digital further expanded its ETH holdings by acquiring 31,057 ETH, funded through a $135 million convertible bond issuance.
The Ethereum staking generates an estimated 3% yield, and while that provides some return, Tabar acknowledged it’s not enough to make the company fully self-sustaining. That’s why Bit Digital is also looking into M&A opportunities in 2026 to boost EBITDA and evolve beyond being a passive holder of assets.
AI Ambitions Through WhiteFiber
One of the company’s most significant pivots is into AI infrastructure, led by its spin-off subsidiary, WhiteFiber (NASDAQ: WYFI). Bit Digital retains a 70% ownership stake in WhiteFiber, which raised nearly $160 million in its IPO. Tabar Said:
Despite the lock-up period for WhiteFiber shares ending in February 2026, Bit Digital has decided not to sell any of its stake. The company believes WhiteFiber’s future valuation and growth potential outweigh immediate liquidity.
Backed by Notable Investors
Backing this transformation is Brock Pierce, co-founder of Tether, who has invested heavily in Bit Digital. Pierce bought $1 million in shares and joined the board in 2021 through his firm Percival Services, which continues to support the company’s AI and Ethereum-focused future.
SQ Magazine Takeaway
I really like what Bit Digital is doing here. The move from Bitcoin mining to Ethereum and AI is not just a pivot, it’s a strategic leap. They’re not chasing hype but positioning themselves smartly at the intersection of two powerhouse trends. With over $400 million in ETH and a majority stake in a public AI company, they’re building for the long term. This kind of forward thinking is exactly what more tech firms need right now.
