Bit Digital Expands Operations with $53M Facility for AI and HPC

Bit Digital has purchased a $53.2 million facility in North Carolina to expand into AI and high-performance computing. This investment ties in with a new Tier 3 data centre in Quebec, supporting a project with Cerebras Systems. Amidst revenue pressures, many Bitcoin miners are looking to diversify their operations beyond cryptocurrency.

Bit Digital, a Bitcoin mining company, has acquired an industrial facility in Madison, North Carolina, for $53.2 million in a move to diversify its business into artificial intelligence (AI) and high-performance computing (HPC). The acquisition process, facilitated through its Canadian subsidiary Enovum Data Centers Corp., includes a $2.25 million initial deposit, of which $1.2 million is non-refundable. The deal is anticipated to complete by May 15.

Concurrent with this announcement, Bit Digital revealed plans for a new Tier 3 data centre in Quebec, Canada, which will enhance its existing agreement with AI infrastructure provider Cerebras Systems to support a 5 megawatt colocation project. The Quebec site will undergo approximately $40 million in upgrades to achieve Tier 3 certification, indicative of enhanced reliability for essential operations.

CEO Sam Tabar articulated that the Quebec facility signifies progressive steps in the company’s initiative to develop robust AI infrastructure at scale. Amidst fluctuating cryptocurrency values and a cyclical Bitcoin halving, various mining companies are looking beyond crypto, with operations pivoting to AI data centre capabilities.

Recent data indicates that public Bitcoin miners liquidated over 40% of their Bitcoin holdings in March, highlighting financial pressures within the industry. Those miners unable to effectively manage costs are increasingly compelled to explore alternative income avenues, with findings from CoinShares suggesting that less profitable firms are likely to transition towards AI and other data-intensive operations.