Bit Digital invests $53 million in North Carolina facility for AI

Bit Digital, a company known for its Bitcoin (CRYPTO:BTC) mining operations, has acquired an industrial property in Madison, North Carolina for $53.2 million as part of its strategy to expand into artificial intelligence and high-performance computing.

The purchase was made through Bit Digital’s Canadian subsidiary, Enovum Data Centers Corp., and regulatory filings indicate the transaction includes a $2.25 million deposit, with $1.2 million of that amount non-refundable.

The deal is expected to close by May 15.

This acquisition comes as Bit Digital continues to diversify its business model beyond cryptocurrency mining, a move driven by the volatility of crypto markets and the impact of Bitcoin’s halving cycles on miner revenues.

In a recent regulatory filing, Bit Digital also disclosed the launch of a new Tier 3 data center in Quebec, Canada, which is being upgraded with approximately $40 million in improvements to meet stringent reliability standards.

This facility will support a 5-megawatt colocation agreement with AI infrastructure provider Cerebras Systems.

“The Quebec operation represents continued momentum in our strategy to deliver purpose-built AI infrastructure at scale,” commented Bit Digital CEO Sam Tabar.

The company’s shift toward AI and high-performance computing mirrors a broader industry trend, as mining firms seek alternative revenue streams amid challenging market conditions.

An October report by CoinShares noted that “the least profitable miners are more likely to shift gears to AI and other workloads,” reflecting the pressure on public miners to manage costs and maintain profitability.

Recent data from TheMinerMag shows that public Bitcoin miners sold over 40% of their Bitcoin holdings in March, highlighting the financial strain faced by the sector.

Other mining companies, such as Hive Digital, have also pointed to the higher revenue potential of AI data centers compared to traditional crypto mining.