Bit Digital Pivots to “Strategic Asset” Model, Goes All-In on ETH and WhiteFiber AI Infrastructure

Key Points

• Bit Digital says it has pivoted from Bitcoin mining to a “strategic asset” model focused on Ethereum economic infrastructure (staking and validator operations) and AI/HPC infrastructure via its controlling stake in WhiteFiber, converting its treasury to 100% ETH and winding down BTC mining.
• The company reports roughly 155,000 ETH and about 27 million WhiteFiber shares (~70% ownership), with a combined mark-to-market value near $900 million at end-2025 and around $650 million more recently, while highlighting an implied discount to MNAV versus WhiteFiber’s public market value.
• Operationally, ~90% of Bit Digital’s ETH is staked (yield ~3–4%), and WhiteFiber had ~11 MW online (targeting >75 MW by end-2026), ~4,500 GPUs, 20+ customers and an $865 million 10‑year contract with Nscale; Bit Digital says it will not sell WhiteFiber shares in 2026.

Bit Digital NASDAQ: BTBT Chief Executive Officer Sam Tabar used a presentation at the RedChip Fintech and Digital Asset Treasury Virtual Investor Conference to outline what he called the company’s evolution into a “strategic asset company,” centered on operating digital infrastructure rather than simply holding assets.

Tabar said the company’s strategy is built on two pillars: “Ethereum economic infrastructure,” where Bit Digital operates staking and network participation, and “AI and HPC intelligence infrastructure,” accessed through a controlling equity stake in WhiteFiber, a separate public company focused on AI data centers and compute infrastructure.

From bitcoin mining to “strategic asset” operations

Tabar said Bit Digital began as a Bitcoin miner in 2020, but over time concluded that mining is “a difficult business to underwrite over long-term horizons” due to compressing returns, rising capital requirements, and limited differentiation.

He described a multi-year pivot:

• In 2021, the company began converting some Bitcoin into Ethereum and building an ETH treasury.
• Over time, it scaled the ETH treasury and built staking infrastructure to make its digital asset exposure “productive rather than purely directional.”
• In 2024, the company launched a cloud services business to gain exposure to AI workloads and later built an AI infrastructure business that became WhiteFiber.
• In 2025, Bit Digital completed the WhiteFiber IPO while retaining approximately 70% ownership, and converted its remaining Bitcoin into Ethereum, making its treasury “100% ETH.”
• In parallel, it began winding down Bitcoin mining.

Tabar emphasized that the “strategic asset company” label is meant to distinguish Bit Digital from a holding company, an ETF-like vehicle, a miner, or a passive treasury. Instead, he said the company deploys capital into productive infrastructure and builds operating capabilities around those assets.

Infrastructure scarcity as a core thesis

Tabar argued that “the core constraint today is not capital” but infrastructure—both in programmable finance and in AI. In Ethereum, he cited scarcity in “blockspace, validator capacity, and reliable network operations.” In AI, he pointed to constraints such as “power availability, data center capacity, cooling, interconnection, and build timelines.”

Those constraints, he said, tend to favor owners and operators of infrastructure rather than passive holders of assets.

Balance sheet highlights: ETH holdings and WhiteFiber stake

Tabar said Bit Digital’s balance sheet is built around two primary assets: Ethereum and its stake in WhiteFiber. As of the end of 2025, he said Bit Digital held approximately 155,000 ETH and owned roughly 27 million shares of WhiteFiber, representing “just over 70%” ownership.

He said that marked-to-market, the combined value of those assets was “nearly $900 million” as of the end of last year, but that with digital asset prices “under pressure,” the combined value was “approximately $650 million” more recently. He added that WhiteFiber’s stock (WYFI) was “up around 10% year-to-date,” which he said helped offset some crypto weakness.

Tabar also pointed to what he described as a market disconnect: subtracting the market value of Bit Digital’s ETH holdings from the company’s market capitalization implies a value for its WhiteFiber stake that is “meaningfully below” WhiteFiber’s own public market value. He said he was not making a claim about where WhiteFiber “should trade,” but was highlighting the discrepancy. He added that Bit Digital provides a simplified MNAV calculator on its website showing updated market values and the implied discount to MNAV in real time.

Ethereum emphasis and staking strategy

In explaining why Bit Digital focuses on Ethereum rather than Bitcoin, Tabar characterized Bitcoin as “simply a store of value” and said Ethereum is “a programmable system” that settles value, runs applications, underpins stablecoins, and generates “native yield through staking.” He said the company began diversifying into ETH in 2021—“very unconventional” at the time in its sector—and framed the decision as shareholder-driven rather than ideological.

Tabar said approximately 90% of Bit Digital’s ETH is actively staked, yielding “around 3%-4%.” He described staking as a mechanism to turn ETH into “productive infrastructure,” comparing it to earning yield rather than holding idle cash. He also said the company operates “institutional-grade Ethereum infrastructure,” with live validator operations, enterprise-grade custody, and a practice of exclusively staking its own Ethereum.

WhiteFiber: AI infrastructure exposure

Tabar said Bit Digital’s AI exposure comes through WhiteFiber, which he described as a “pureplay AI infrastructure company” operating in two business lines: cloud (deploying GPUs and providing compute directly to customers) and data center colocation (owning and developing facilities and leasing power-dense capacity). He said the company expects colocation to represent a larger portion over time due to its long-term contracted nature.

While emphasizing that Bit Digital does not operate WhiteFiber—“we are strategic shareholders”—Tabar shared operational metrics he attributed to WhiteFiber: approximately 11 MW online at the end of 2025, expected to grow to over 75 MW by year-end 2026; roughly 4,500 GPUs deployed; and more than 20 customers.

He also said WhiteFiber has pursued a “retrofit-first” development model aimed at shortening time to market. Tabar highlighted a recently signed “$865 million contract over 10-year terms with Nscale,” with an initial deployment expected to be operational in the second quarter. He added that the agreement includes a first offer on additional capacity expected to come online in 2027, which he said would approximately double the size of the initial deployment.

Tabar said Bit Digital has publicly stated it does not intend to sell any WhiteFiber shares in 2026, while expecting to monetize portions of the investment over time “in a way that reflects what we believe is materially higher long-term value.”

On capital structure, Tabar said Bit Digital has no unsecured debt and issued $150 million of unsecured convertible notes in 2025. He said the structure allowed the company to raise capital at a premium to MNAV, and stressed that ETH was not collateralized—an approach he said helps avoid forced selling in volatile markets.

Looking ahead, Tabar said Bit Digital aims to be “one of the largest public Ethereum treasuries,” a trusted large-scale ETH staking operator, and a major shareholder in scaled AI infrastructure—positioning the company as a “leading public market platform for digital infrastructure exposure.”

About Bit Digital NASDAQ: BTBT

Bit Digital, Inc NASDAQ: BTBT is a publicly traded digital asset mining company that specializes in the proof-of-work mining of Bitcoin. Incorporated in Nevada and headquartered in New York City, Bit Digital develops, owns and manages a fleet of high-efficiency ASIC miners, with the primary aim of generating newly minted Bitcoin through computational work. The company's revenue is derived solely from its mining operations and any resulting cryptocurrency holdings.

To support its mining activities, Bit Digital maintains multiple data center facilities across North America.

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