Digital infrastructure company SWI raised €800M to upgrade its data centers, including some from Genesis Digital, a bitcoin miner snarled in FTX's bankruptcy

Bitcoin mining facilities with significant power capacity can be repurposed for AI workloads, potentially increasing their value.

SWI Group has secured €800 million ($895 million) in funding at a €6.1 billion valuation to redevelop its data center infrastructure. The company is repurposing former FTX-backed Bitcoin miner Genesis Digital Assets' facilities, acquired through a significant investment and subsequent majority ownership, to cater to AI and high-performance computing workloads. SWI plans to market Genesis Digital's 15 facilities across Texas, North Carolina, South Carolina, and Sweden, which possess over 1.3 gigawatts of grid connections, to hyperscale cloud providers. The initiative also includes SWI's European platform, AiOnX, bringing the group's total capacity to over 3.6 gigawatts. Genesis Digital's past was entangled with FTX and Alameda Research, involving a substantial investment that later led to a lawsuit from FTX estate administrators, which was dropped after SWI's initial stake purchase. SWI aims to sell its three smaller mining sites in Kazakhstan and deploy the new capital into infrastructure and compute resources.

SWI's strategy leverages the substantial grid access and power infrastructure of former crypto mining operations, recognizing its value for AI and high-performance computing. This pivot reflects a broader trend of adapting energy-intensive digital infrastructure for the growing demands of AI, positioning SWI alongside companies like CoreWeave and Iren who are also pursuing AI-centric data center strategies. The success of this venture will depend on SWI's ability to execute on its conversion plans and secure deals with hyperscale cloud providers, moving beyond the volatile economics of Bitcoin mining.

The acquisition and redevelopment of Genesis Digital Assets, a company previously financed by FTX and Alameda Research, highlights the lingering financial entanglements and reputational challenges within the crypto industry. While SWI has settled legal disputes with FTX, the history underscores the evolving landscape where crypto assets and their infrastructure are being scrutinized and repurposed. This move by SWI demonstrates a capital-intensive approach to AI infrastructure that seeks to benefit from the sunk costs and existing power capacity of crypto-related assets, offering a potential pathway for other underutilized mining operations.