Bit Digital shifts focus to ethereum and AI infrastructure

Bit Digital Inc. (NASDAQ: BTBT) released its annual shareholder letter outlining the company's strategic transformation from bitcoin mining to what it calls a "strategic asset company" focused on Ethereum infrastructure and artificial intelligence compute.

The company reported holding over 150,000 ETH as of the third quarter, with the majority staked to generate protocol rewards. Chief Executive Officer Sam Tabar stated the company exited bitcoin mining operations to reallocate capital toward what he described as more flexible infrastructure opportunities.

"We deliberately reshaped the company around a clear view of how capital markets are evolving," Tabar wrote in the letter. The company now focuses on Ethereum as economic infrastructure and AI through its majority stake in WhiteFiber.

Bit Digital completed an unsecured convertible note offering during 2025 to support the business transformation. The company stated it will not sell any WhiteFiber shares in 2026 through secondary offerings or other discretionary dispositions.

WhiteFiber (NASDAQ: WYFI) provides AI and high-performance computing infrastructure. The letter indicated improvements in utilization and operational performance by the third quarter.

The company transitioned from bitcoin mining, which Tabar described as "less efficient use of capital" compared to opportunities allowing active participation and yield generation. Bit Digital maintains its digital asset exposure primarily through Ethereum rather than bitcoin.

Tabar stated the company's strategy aims to generate returns independent of broader market movements through operational excellence and strategic capital deployment. The letter emphasized long-term infrastructure investment over short-term trading strategies.

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