FTX Bitcoin Bet Takes an Unexpected Turn as SWI Group Raises $900 Million
SWI Group has raised €800 million from institutional buyers at a €6.1 billion valuation. The Singapore-incorporated, Amsterdam-listed firm is repositioning former FTX backed Bitcoin miner Genesis Digital Assets round AI infrastructure and advertising and marketing its websites to hyperscale cloud providers.
SWI plans to market Genesis Digital amenities in Texas, North Carolina, South Carolina, and Sweden to hyperscale cloud suppliers. The firm says Genesis Digital has greater than 1.3 gigawatts of energized and accepted grid connections throughout 15 amenities. Combined with AiOnX, SWI’s European platform, the group says it has greater than 3.6GW.
SWI’s transfer follows its June 15 buy of about 38.3% of Genesis Digital’s shares for $500 million. The deal additionally included 77.2% of the $1.124 billion liquidation choice on Genesis Digital’s most popular inventory; SWI has since moved to majority possession.
The firm is making use of a well-recognized infrastructure thesis to a Bitcoin mining enterprise: grid entry could also be extra useful than the economics of mining at a selected website. That thesis is more and more related as operators search to adapt energy-intensive amenities for AI and high-performance computing.
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Bitcoin Mining-to-AI Conversions Depend on Execution and Genesis Digital’s FTX History
Data Center Dynamics has described the Genesis Digital transaction as a pivot towards hyperscaler-facing infrastructure and reported that the websites had been meant for AI and high-performance computing workloads. It has additionally positioned the transfer alongside corporations together with CoreWeave, Iren, and Applied Digital, which have pursued AI or neocloud methods.
The shift hyperlinks crypto infrastructure to a separate, capital-intensive AI buildout. The overlap between AI funding and crypto markets has additionally drawn consideration to concerns about AI-sector credit risk and Bitcoin.
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Genesis Digital’s Bitcoin miner is a previously FTX backed enterprise, coming from its financing historical past. Alameda Research invested about $1.15 billion within the firm from 2021 and ended up with a 20% stake. The background sits throughout the wider FTX story and Sam Bankman-Fried’s business empire.
After FTX collapsed, property directors sued Genesis Digital to recuperate the funding, calling it one in all Bankman-Fried’s most reckless investments and describing its Kazakh property as just about nugatory, in line with the Wall Street Journal.
FTX dropped the lawsuit on June 15, the identical day SWI closed its preliminary stake buy. SWI founder and CEO Max-Hervé George stated all authorized disputes with FTX and different shareholders had been settled.
SWI’s acknowledged subsequent steps are restricted and concrete: market the 4 named areas to hyperscale cloud suppliers, promote the three small Kazakhstan mining websites, and deploy the brand new capital into infrastructure, compute, and its improvement pipeline throughout Europe and the US.
For now, the announcement provides no timeline for conversions and confirms no signed hyperscaler offers or stay AI capability. The €800 million increase funds the technique.
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