Bitcoin Mining Company Bit Digital has acquired an industrial building in Madison, North Carolina, raising the ante of its business diversification strategies, including strategic pivots to AI and high-performance computing.
BIT Digital has agreed to purchase the property for $53.2 million through Enovum Data Centers Corp., a regulatory filing, a wholly owned Canadian subsidiary of the company. The investment includes $2.25 million in initial deposits, with $1.2 million being non-refundable. The transaction is scheduled to end on May 15th.
The BIT Digital regulatory application was submitted around the same time that it announced its new Tier 3 data center site in Quebec, Canada.
The Quebec facility has been remodeled with an upgrade of approximately $40 million to meet Tier 3 standards. This is a strict requirement to ensure high reliability of critical systems and continuous operation.
Bit Digital CEO Sam Tabar said at the time that Quebec’s operations “represent the continued momentum in its strategy to deliver purpose-built AI infrastructure at scale.”
Related: Auradine raises $153 million to debut AI data center business group
Miners under pressure to diversify
Faced with a rectangular Bitcoin harvesting cycle that squeezes volatile crypto prices and revenue, some mining companies are leveraging their existing infrastructure to pivot towards other data-intensive workloads. Mining companies like Hive Digital offer AI data centers a potentially higher revenue stream than crypto mining.
According to data from Theminermag’s publication, the latest indication of economic pain is that in March, public Bitcoin miners sold more than 40% of their Bitcoin (BTC) shares in March.
Public miners who can’t keep costs down are the hardest to keep Bitcoin operations, putting pressure on executives to look for alternative revenue streams.
An October report by Coinshares suggested that the least profitable miners are likely to shift their gear to AI and other workloads.
Related: According to the SEC, mining proofs do not constitute a securities transaction
Disclaimer: Includes third-party opinions. No financial advice.
