Brock Pierce-backed Ethereum treasury firm Bit Digital to fully wind down bitcoin mining operations

Bit Digital (Nasdaq: BTBT) is planning on fully winding down its Bitcoin mining operations as it continues to invest in Ethereum- and AI-related strategies, according to a letter to shareholders on Thursday. 

“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,” CEO Sam Tabar wrote on Thursday. 

“At the same time, we consolidated our digital asset exposure into Ethereum and prioritized our exposure of Al infrastructure through our majority stake in WhiteFiber,” he added. “These decisions repositioned Bit Digital around infrastructure we can operate, monetize, and compound over time.”

Bit Digital entered the bitcoin mining business in 2020, initially with assets based in China and the U.S., and briefly mined ETH in 2022 prior to Ethereum’s switch to proof-of-stake, the year it reportedly began its “ETH accumulation and staking.” 

Notably, Bit Digital is also one of the first crypto mining firms to begin diversifying into high-performance computing with the launch of Bit Digital AI in 2023, ahead of the sector-wide shift into HPC operations. 

Bit Digital ditching bitcoin

Tabar first hinted Bit Digital would exit mining as early as June 2025, when the firm pivoted to become a “pure-play” Ethereum treasury and staking company, while continuing to expand its AI/HPC business via subsidiaries and partnerships. Over the next several months, the firm began selling mining assets, letting hosting contracts expire, and retiring outdated equipment.

In August, WhiteFiber, a distinct HPC subsidiary of Bit Digital AI, raised nearly $160 million in an initial public offering. Bit Digital owns approximately 27 million shares of WhiteFiber.

“WhiteFiber represents our long-term exposure to intelligence infrastructure, and we view this ownership as a core strategic asset within our long-term capital deployment strategy, rather than a financial asset to be traded,” Tabar wrote.

As for its treasury operations, Bit Digital holds 153,546 ETH as of July, valued at $428.8 million, the majority of which is staked. These holdings give Bit Digital an mNAV of 1.93, according to The Block’s data, meaning BTBT is trading about 90% above the net asset value of Bit Digital’s underlying ETH.

In October, Bit Digital purchased an additional 31,057 ETH with proceeds from an upsized $135 million convertible note offering.

“Capital markets are increasingly rewarding infrastructure that is productive, durable, and actively deployed. Our exposure to Ethereum and Al is aligned with that shift, providing participation in the systems that enable settlement, coordination, and automation as they continue to scale,” Tabar wrote.

Tether co-founder and former child star Brock Pierce purchased $1 million worth of Bit Digital shares around the time it announced its ETH treasury strategy last year, adding to his exposure to the company through his investment firm Percival Services. Pierce was added to the Bit Digital board in 2021.