Bit Digital Inc (NASDAQ:BTBT) has highlighted its shift away from bitcoin mining and toward Ethereum-based infrastructure and artificial intelligence compute assets as core pillars of its business in its annual letter to shareholders.
In the letter, CEO Sam Tabar described 2025 as a pivotal year for the company, writing that Bit Digital has been reshaping its capital allocation and operations to align with structural changes in capital markets.
“2025 marked a defining year for Bit Digital,” the CEO wrote. “Over the past year, we deliberately reshaped the company around a clear view of how capital markets are evolving.”
The company said it is transitioning to what it calls a strategic asset company model, focused on deploying and operating infrastructure assets rather than passively holding them. As part of that shift, Bit Digital exited bitcoin mining and consolidated its digital asset exposure around Ethereum, while expanding its AI infrastructure exposure through its ownership stake in WhiteFiber.
Tabar wrote that bitcoin mining became a less efficient use of capital compared with opportunities that offer yield generation and operational leverage. The company sees the exit as a move toward more flexible and durable infrastructure investments while maintaining its broader conviction in digital assets.
Ethereum has become the company’s primary economic infrastructure exposure and reported holding more than 150,000 ETH as of the third quarter, with the majority staked to generate protocol-native rewards while maintaining liquidity and institutional custody standards.
“We didn't view Ethereum as just another token to hold, but as programmable financial infrastructure with long-term relevance across payments, compute, and capital markets,” Tabar wrote.
In parallel, Bit Digital emphasized its AI strategy centered on WhiteFiber, which it described as a long-term strategic asset. Tabar cited structural constraints in power availability, data center capacity, and build timelines as drivers of sustained demand for AI compute.
“WhiteFiber represents our long-term exposure to intelligence infrastructure,” the CEO wrote, adding that Bit Digital intends to remain a long-term owner as the business scales. He added that improvements in utilization and operational traction were evident by the third quarter.
To support its transformation, Bit Digital completed an unsecured convertible note offering, which it described as an innovative financing structure for its sector that preserved balance sheet flexibility while raising capital at a premium to underlying asset value. The company remains focused on disciplined capital allocation, prioritizing infrastructure assets it intends to own and operate over long time horizons, Tabar added.
Looking ahead, Bit Digital said it is moving from transformation to execution in 2026, with a focus on strengthening its ability to self-fund growth through durable cash flow and maintaining balance sheet flexibility.
The company noted that current returns are largely tied to broader market performance in Ethereum and WhiteFiber but said it plans to pursue differentiated value creation through operational execution and strategic capital deployment.
“This positioning is intentional,” the CEO wrote, adding that the company believes its strategy places it ahead of evolving market structures.
Separately, Bit Digital reaffirmed its long-term commitment to WhiteFiber and said it will not sell any of its WhiteFiber shares during 2026, including after the expiration of its IPO lockup period.
The company said it continues to own approximately 27 million shares of WhiteFiber following the company’s August 2025 initial public offering, with the lockup set to expire on February 2, 2026.
Bit Digital reiterated that it views WhiteFiber as a core strategic holding and does not intend to monetize the investment, noting that any limited treasury or risk-management activities, including derivative transactions, would be intended to maintain its long-term ownership position rather than represent a sale of its WhiteFiber stake.
“As WhiteFiber’s IPO lockup approaches expiration, we want to reaffirm what we previously communicated to investors,” Tabar said in a statement.
“WhiteFiber is central to our long-term strategy and represents our core exposure to AI infrastructure, alongside our Ethereum-focused digital asset platform. Our continued ownership reflects strong alignment with WhiteFiber’s other shareholders and underscores our confidence in the company’s long-term growth.”