Bitcoin price news: SWI raises $894M to turn Genesis Digital to AI
SWI Group raised 800 million euros at a 6.1 billion euro valuation to turn former FTX-backed miner Genesis Digital to AI data centers and sell Kazakhstan sites.
| Item | Detail |
|---|---|
| Issuer | SWI Group (Euronext Amsterdam) |
| Capital raised | 800 million euros (about $894 million) |
| Valuation | 6.1 billion euros |
| Target | Genesis Digital Assets, renamed SWI Digital |
| Stake / votes | About 40% bought for $500 million in June; 70% of voting rights at August close |
| Kazakhstan sites | To be sold |
SWI Group said on Oct. 12 that it raised 800 million euros from institutional investors to expand AI and data center projects in Europe and the U.S., money that will largely go to converting a bitcoin miner once backed by FTX. For readers following bitcoin price news and miner economics, the deal is another sign that mining sites are being valued for their power rather than their hash rate.
The transaction
The capital increase values the Euronext Amsterdam-listed investment firm, which focuses on digital infrastructure, at 6.1 billion euros. SWI announced in June that it would buy about 40% of Genesis Digital Assets for $500 million. It completed the purchase in August with 70% of the voting rights and renamed the unit SWI Digital.
The plan is to repurpose Genesis Digital’s U.S. and Swedish facilities for AI workloads and to sell the unit’s sites in Kazakhstan. SWI chief executive Max-Hervé George told the Wall Street Journal he had “zero interest” in bitcoin mining.
Where FTX fits
Alameda Research, the trading firm owned by former FTX chief executive Sam Bankman-Fried, invested more than $1 billion in Genesis Digital Assets starting in 2021 and held about 20% of the miner, the Journal reported. FTX filed for bankruptcy in November 2022.
An industry-wide trade
The pivot follows a pattern. Miners increasingly treat power connections and data center capacity as their most valuable assets, and they have signed more than $70 billion in AI and high-performance computing contracts in search of steadier revenue than mining currently provides. Listed peers such as TeraWulf and Core Scientific are pursuing similar conversions.
For the bitcoin network, each site that exits mining removes a source of hash power. Mining revenue remains tied to bitcoin’s price and fee levels, which is part of why operators are looking for contracted income elsewhere.
What to watch
The timing of the Kazakhstan sales, the first AI customers signed for the U.S. and Swedish sites, and how SWI sequences the conversion will show how quickly the repurposing translates into revenue. Whether other miners with large power allocations follow with similar outside capital raises is the broader question.
Prepared with AI assistance from public sources and reviewed under our editorial policy. Not investment advice.
