FTX-Linked Miner Genesis Digital Assets to Fuel AI Expansion After €800M Raise

SWI Group Secures €800M for AI Infrastructure

SWI Group has raised €800 million in a capital increase backed by institutional investors, valuing the company at €6.1 billion. This brings total equity raised since March to over €1 billion. The funds will be used to develop data centers, power infrastructure, and computing deployments across Europe and the United States, with a focus on artificial intelligence and high-performance computing.

Genesis Digital Assets: From FTX to AI

A key component of this expansion is Genesis Digital Assets (GDA), a former major investment of the bankrupt FTX exchange’s trading arm, Alameda Research. SWI acquired control of GDA earlier this year and plans to rebrand it as SWI Digital. The company will leverage Genesis’s existing US mining infrastructure as a foundation for AI services.

Bitcoin Miners Pivot to AI

The fundraising highlights a growing trend among Bitcoin miners to redirect capital toward AI infrastructure. This shift is driven by significantly stronger projected profitability; CoinShares estimates AI computing infrastructure can generate approximately $1.5 million in annualized profit per megawatt, compared to $500,000 from Bitcoin mining. This divergence has led to a substantial revaluation of companies with access to electricity and data-center capacity. Publicly traded mining companies focused on AI saw gains between 70% and 195% in Q2, trading at 19.4x forward sales compared to 6.6x for mining-focused competitors.

From Alameda Investment to SWI Asset

Alameda Research invested roughly $1.15 billion in Genesis between 2021 and 2022, when the miner was valued at $5.5 billion. The investment became subject to bankruptcy litigation, but FTX’s recovery trust dismissed the lawsuit in June 2023. SWI has since consolidated control, acquiring over 70% ownership in August. While SWI has not disclosed which Genesis facilities will be converted first, the company’s existing 4 gigawatts of power capacity positions it well for redevelopment.

Source: CryptoSlate