CoinDesk
SWI Group raised €800 million, or $894 million, from institutional investors to expand its artificial intelligence and data center operations in Europe and the United States. The capital increase values the Euronext Amsterdam-listed investment firm at €6.1 billion. SWI plans to repurpose Genesis Digital Assets, the former FTX-backed Bitcoin miner it controls, for AI workloads.
Why it matters
SWI will use the former miner’s U.S. and Swedish facilities for AI computing while selling its sites in Kazakhstan. The company acquired about 40% of Genesis Digital Assets for $500 million in June, completed the acquisition in August, and renamed the unit SWI Digital. It holds 70% of the voting rights.
The pivot reflects a broader change in the economics of Bitcoin mining. For many operators, power connections and data center sites can be more valuable as infrastructure for AI and high-performance computing than as locations for mining machines. Bitcoin miners have signed more than $70 billion in AI and high-performance computing contracts as they pursue steadier revenue than Bitcoin mining currently provides.
SWI CEO Max-Hervé George said he had “zero interest” in Bitcoin mining, making the strategic break explicit. The company is now entering the same infrastructure race as listed miners such as TeraWulf, which are also repositioning capacity for AI workloads.
Market impact
The fundraise gives SWI fresh institutional capital to build out that strategy while assigning a substantial valuation to its digital infrastructure platform. The U.S. and Swedish conversions could turn existing power and site assets into AI capacity without requiring the company to rely solely on cryptocurrency mining revenue.
The deal also keeps the former FTX investment in focus. Alameda Research invested more than $1 billion in Genesis Digital Assets from 2021 and owned about 20% of the miner before FTX filed for bankruptcy in November 2022. SWI’s transaction shows how assets tied to the crypto cycle are being repositioned for the expanding AI data center market.
Frequently asked questions
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How much did SWI Group raise for its AI and data-center expansion?
SWI Group raised €800 million, equivalent to $894 million, from institutional investors. The fundraise values the company at €6.1 billion.
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Which Genesis Digital facilities will SWI repurpose for AI workloads?
SWI plans to repurpose Genesis Digital facilities in the United States and Sweden for AI workloads. It is selling the unit’s sites in Kazakhstan.
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What happened to Genesis Digital after SWI acquired it?
SWI acquired about 40% of Genesis Digital Assets for $500 million in June, completed the acquisition in August, renamed it SWI Digital, and holds 70% of the voting rights.
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Why are Bitcoin miners moving into AI data centers?
Miners are converting power connections and data-center sites into AI and high-performance computing capacity as they seek steadier revenue than Bitcoin mining provides.
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What was the connection between Genesis Digital and FTX?
Genesis Digital was backed by FTX-related firm Alameda Research, which invested more than $1 billion from 2021 and owned about 20% of the miner before FTX filed for bankruptcy in November 2022.
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