SWI Group indicates that the funds raised from a round of financing amounting to 800 million euros (894 million US dollars) will be used to transform Genesis Digital Assets, which was acquired from the FTX bankruptcy case, from a Bitcoin mining company into a data center targeting AI.

SWI Group has raised 800 million euros (894 million US dollars) from institutional investors, valuing the company at 6.1 billion euros. The funds will be used to expand its artificial intelligence and data center projects in Europe and the United States.

The company plans to convert the facilities of Genesis Digital Assets in the United States and Sweden to accommodate the workload of AI, while selling the site of this business in Kazakhstan. Genesis Digital Assets was a Bitcoin mining company previously supported by FTX; SWI Group has now taken control of the company and renamed it SWI Digital.

The strategy of SWI reflects a broader shift in the entire industry: Bitcoin mining companies are converting electricity access and data center capacity into AI and high-performance computing revenue.

The investment firm SWI Group ( SWICH ), which is listed on the Euronext Amsterdam and focuses on digital infrastructure, stated that this capital increase has raised its valuation to 6.1 billion euros. In June, the company announced the acquisition of approximately 40% of the shares in Genesis Digital for 500 million US dollars, and completed the acquisition in August, holding 70% of the voting rights. At the same time, it renamed the business SWI Digital.

The company stated that its strategy illustrates a common trading pattern among Bitcoin mining companies today: the most valuable assets are no longer the mining machines, but rather the power access and data center facilities that can be repurposed for AI customers. Bitcoin mining companies have signed AI and high-performance computing contracts worth over $70 billion in order to seek more stable income than current Bitcoin mining.

Shifting from cryptocurrency mining to processing AI calculations has also brought SWI Group into the same competitive arena as listed mining companies such as TeraWulf ( WULF ) and Core Scientific ( CORZ ). These companies are transforming their access to electricity and data center capacity into AI hosting services.

The CEO told The Wall Street Journal that he has "no interest" in Bitcoin mining. The company is selling its facilities in Kazakhstan and plans to use its facilities in the United States and Sweden to handle the workload.

The Wall Street Journal reported that Alameda Research, an encrypted trading company under Sam Bankman - Fried, has invested over $1 billion in Genesis Digital Assets since 2021 and holds approximately 20% of the mining company's shares. FTX filed for bankruptcy in November 2022, making this investment one of many assets to be reviewed by the estate management party.