Bitcoin mining firm Bit Digital has acquired an industrial constructing in Madison, North Carolina, upping the ante in a enterprise diversification technique that features strategic pivots into AI and high-performance computing.
Bit Digital agreed to purchase the property for $53.2 million via Enovum Information Facilities Corp., the corporate’s wholly owned Canadian subsidiary, regulatory filings present. The funding features a $2.25 million preliminary deposit, with $1.2 million being non-refundable. The transaction is anticipated to shut on Might 15.
Bit Digital’s regulatory submitting was submitted across the similar time that it announced a brand new Tier 3 information heart web site in Quebec, Canada, which is able to help the corporate’s 5 megawatt colocation settlement with AI infrastructure supplier Cerebras Programs.
The Quebec facility is being retrofitted with roughly $40 million in upgrades to fulfill Tier 3 requirements — strict necessities that guarantee excessive reliability for vital techniques and steady operation.
Bit Digital CEO Sam Tabar mentioned on the time that the Quebec operation “represents continued momentum in our technique to ship purpose-built AI infrastructure at scale.”
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Miners beneath strain to diversify
Confronted with unstable crypto costs and a quadrennial Bitcoin halving cycle that squeezes revenues, a number of mining companies have leveraged their present infrastructure to pivot to different data-intensive workloads. Mining companies like Hive Digital say AI information facilities supply probably greater income streams than crypto mining.
Within the newest signal of financial ache, public Bitcoin miners bought greater than 40% of their Bitcoin (BTC) holdings in March, based on information from TheMinerMag publication.
Public miners that may’t preserve their prices beneath management battle essentially the most in sustaining their Bitcoin operations, putting extra strain on executives to hunt out different income streams.
An October report by CoinShares advised that the least profitable miners usually tend to shift gears to AI and different workloads.
Associated: SEC says proof-of-work mining does not constitute securities dealing
