SWI Group Raises €800 Million to Convert FTX-Backed Bitcoin Miner Genesis Into AI Hub
SWI Group raises €800 million for AI infrastructure expansion
Amsterdam-listed SWI Group announced on October 12 that it has raised €800 million through a capital increase backed by institutional investors. The funding values the group at €6.1 billion and brings total equity raised since March to more than €1 billion.
The money will support data-center development, power infrastructure, and computing deployments across Europe and the United States, as SWI shifts its digital infrastructure toward artificial intelligence and high-performance computing.
A central part of that plan involves Genesis Digital Assets, a former major Bitcoin mining company that SWI acquired control of earlier this year. Genesis was once one of Alameda Research's largest venture investments before the FTX bankruptcy in November 2022.
Former FTX investment becomes AI foundation
Alameda Research invested roughly $1.15 billion in Genesis between 2021 and 2022, when the miner was valued at about $5.5 billion. After FTX collapsed, the investment became part of ongoing bankruptcy litigation, with FTX's recovery trust seeking to reclaim funds it claimed were improperly transferred. That lawsuit was dismissed in June 2026.
SWI completed its acquisition of more than a 70% stake in Genesis in August through share purchases and restructuring. The company plans to rename the operation SWI Digital and use Genesis's existing US mining sites as the foundation for AI and high-performance computing services.
SWI also disclosed that its combined European and American digital infrastructure portfolio exceeds 4 gigawatts of power capacity, with over 80% of its capital allocated to the sector. The group intends to develop its own AI cloud platform, moving beyond data-center ownership into computing services for enterprises and developers.
AI computing outperforms Bitcoin mining profitability
SWI's pivot comes as Bitcoin miners increasingly redirect capital toward AI infrastructure, attracted by stronger projected returns.
According to CoinShares' second-quarter mining report, AI computing infrastructure could generate approximately $1.5 million in annualized profit per megawatt, compared with an estimated $500,000 from Bitcoin mining. That threefold difference has helped drive substantial revaluation gains for former mining companies pursuing AI opportunities.
CoinShares found that 10 of the 12 publicly traded mining companies it tracked gained between 70% and 195% during the second quarter. Companies focused on AI infrastructure, including Hut 8, Cipher Mining, TeraWulf and Core Scientific, traded at an average of 19.4 times forward sales, compared with 6.6 times for more mining-focused competitors.
However, converting mining assets into AI-grade facilities is expensive. CoinShares estimates the cost ranges from $8 million to $15 million per megawatt, compared with roughly $700,000 to $1 million for traditional mining infrastructure. Of the more than $100 billion in disclosed AI computing contracts tracked by CoinShares, only about $1.1 billion in annualized revenue has been generated so far, with around 550 megawatts producing billings against more than 4 gigawatts of contracted capacity.
What remains undisclosed
SWI has not disclosed how much of the €800 million will go specifically to Genesis, which facilities will be converted first, their development costs, or when they will begin generating AI revenue. The company said new shares will be issued in several series but did not name the participating investors.
Why this matters for the crypto industry
The financing highlights a broader trend in the cryptocurrency mining sector: companies with access to electricity and data-center capacity are being revalued by investors as they transition toward AI workloads. The gap between contracted AI capacity and actual revenue generation also underscores that execution will be a key factor as valuations climb.
Source
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.