FTX Bitcoin Bet Takes a New Turn as SWI Group Secures $900 Million

SWI Group has secured €800 million from institutional investors at a valuation of €6.1 billion. The Singapore-incorporated company, which is listed in Amsterdam, is shifting the focus of Genesis Digital Assets, a Bitcoin mining business formerly backed by FTX, toward AI infrastructure. It is also positioning the company’s facilities as potential sites for hyperscale cloud providers.

SWI intends to market Genesis Digital’s facilities in Texas, North Carolina, South Carolina, and Sweden to large-scale cloud computing companies. According to SWI, Genesis Digital has more than 1.3 gigawatts of energized and approved grid connections spread across 15 facilities. When combined with AiOnX, SWI’s European platform, the group’s total capacity exceeds 3.6 GW.

The latest development follows SWI’s acquisition on June 15 of approximately 38.3% of Genesis Digital’s shares for $500 million. The transaction also included 77.2% of the $1.124 billion liquidation preference attached to Genesis Digital’s preferred stock. SWI has since progressed to majority ownership of the business.

The company is applying a broader infrastructure investment strategy to Bitcoin mining: access to electricity and grid connections could prove more valuable than the returns generated by mining at a specific location. This approach is becoming increasingly relevant as operators look to repurpose energy-intensive facilities for artificial intelligence and high-performance computing.

Bitcoin Mining-to-AI Conversions Depend on Execution and Genesis Digital’s FTX Background

Data Center Dynamics has characterized the Genesis Digital transaction as a shift toward infrastructure designed for hyperscale cloud providers. The publication has also reported that the facilities were intended to support AI and high-performance computing workloads. It has compared the strategy with efforts by companies such as CoreWeave, Iren, and Applied Digital to expand into AI infrastructure and neocloud services.

The transition connects the cryptocurrency infrastructure sector with the separate, capital-intensive expansion of AI computing. At the same time, the growing intersection between AI investment and crypto markets has raised questions about credit risks in the AI sector and their potential implications for Bitcoin.

Genesis Digital’s history is closely linked to FTX through its previous financing arrangements. Alameda Research invested approximately $1.15 billion in the company beginning in 2021, eventually securing a 20% ownership stake. This relationship formed part of the broader business network associated with FTX and its founder, Sam Bankman-Fried.

Following FTX’s collapse, administrators overseeing the exchange’s estate filed a lawsuit against Genesis Digital in an effort to recover the investment. According to the Wall Street Journal, the estate described the deal as one of Bankman-Fried’s most reckless investments and characterized Genesis Digital’s Kazakh assets as virtually worthless.

FTX withdrew the lawsuit on June 15, coinciding with the completion of SWI’s initial share purchase. SWI founder and CEO Max-Hervé George said that all legal disputes involving FTX and other shareholders had been resolved.

SWI has outlined several immediate priorities for the business. These include marketing the four identified locations to hyperscale cloud providers, selling three smaller Bitcoin mining sites in Kazakhstan, and directing the newly raised capital toward infrastructure, computing capacity, and development projects across Europe and the United States.

However, the announcement does not establish a timeline for converting the facilities to AI operations. It also does not confirm any signed agreements with hyperscale cloud providers or disclose operational AI computing capacity. The €800 million fundraising provides capital for the strategy, but its success will ultimately depend on execution and the company’s ability to secure customers for its planned infrastructure.

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