Bit Digital Inc. – Strategic Pivot to Ethereum, AI and WhiteFiber

Bit Digital Inc. (NASDAQ: BTBT) has announced a decisive shift away from its original Bitcoin‑mining model toward a concentrated focus on Ethereum‑based programmable finance and high‑performance computing. The announcement, disclosed to shareholders on January 29 2026, signals the company’s intent to allocate capital to infrastructure that delivers higher operational leverage and more durable value creation.

1. End of Bitcoin Mining Operations

The CEO, Sam Tabar, explained that Bitcoin mining, once a core revenue driver, has become a comparatively inefficient use of capital relative to emerging opportunities in the digital‑asset space. The company will fully wind down all Bitcoin‑mining activities and reallocate the proceeds to build exposure on Ethereum and to strengthen its AI infrastructure through WhiteFiber, its majority‑owned high‑performance computing subsidiary.

“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,” Tabar wrote.

Bit Digital first entered Bitcoin mining in 2020, operating assets in China and the United States. In 2022, the firm briefly mined Ethereum before the network’s transition to proof‑of‑stake; that same year, it began accumulating and staking ETH. The decision to exit Bitcoin mining thus marks the end of a decade‑long venture and the beginning of a new era focused on programmable finance and AI.

2. Reinforcing the WhiteFiber Position

In a concurrent announcement dated January 28 2026, Bit Digital reaffirmed its long‑term investment in WhiteFiber Inc. (NYSE: WYFI). The company now holds roughly 27 million shares, representing a core strategic holding that it will not liquidate during 2026. The WhiteFiber IPO lock‑up period expired on February 2, but Bit Digital’s commitment to retain its stake remains unchanged.

WhiteFiber’s high‑performance computing platform provides the infrastructure needed for the company’s AI initiatives, offering scalability and flexibility that traditional Bitcoin‑mining rigs cannot match. By maintaining a substantial stake, Bit Digital preserves its influence over the direction of WhiteFiber and secures a foothold in the growing AI infrastructure market.

3. Forward‑Looking Capital Deployment

The strategic pivot reflects Bit Digital’s broader view that the most valuable assets are those operated and monetized rather than held on a balance sheet. The company intends to deploy capital toward:

  • Ethereum‑based programmable financial rails – expanding its presence in decentralized finance (DeFi) and tokenized asset ecosystems.
  • Artificial intelligence infrastructure – leveraging WhiteFiber’s high‑performance compute to support machine‑learning workloads, cloud services, and emerging AI applications.
  • Operational leverage – shifting from energy‑intensive mining to software‑centric models that promise higher margins and lower capital intensity.

This approach positions Bit Digital to capitalize on the next wave of digital‑asset innovation, where programmable finance and AI converge to create new value propositions for institutional and retail participants alike.

4. Market Implications

The decision to exit Bitcoin mining may affect the company’s short‑term cash flow, given the volatility of BTC prices. However, the transition to Ethereum staking and AI infrastructure is expected to yield more predictable revenue streams and improved capital efficiency. Market observers note that Bit Digital’s current P/E ratio of 3.42, coupled with a market cap of roughly $683 million, suggests the stock is trading near valuation levels typical for a company in transition.

Investors will likely monitor the company’s execution on its new strategy, particularly:

  • The rate at which WhiteFiber scales and captures market share in AI infrastructure.
  • The depth of Bit Digital’s Ethereum staking and programmable finance initiatives.
  • The ability to generate sustainable operating income from these new ventures.

5. Conclusion

Bit Digital Inc. has moved decisively away from its legacy Bitcoin‑mining business, positioning itself at the intersection of Ethereum and AI. By reinforcing its WhiteFiber investment and focusing on programmable finance, the company seeks to transform capital allocation, operational efficiency, and long‑term value creation. This strategic realignment signals a broader industry trend: firms that once mined cryptocurrencies are pivoting toward infrastructure that powers the next generation of digital‑asset ecosystems.