Bit Digital AI infrastructure unit WhiteFiber to be spun off, go public; shares jump

Shares of Bit Digital, a publicly traded digital asset platform, soared more than 19% yesterday, July 16. Its subsidiary WhiteFiber, which specializes in AI infrastructure, will be spun off and aims to go public on the Nasdaq, the company announced.

Bit Digital stock jumped more than 19% yesterday to close at $3.93 per share. In premarket trading this morning, the gains have continued, with over 6% added in the first hour.

This is the market's reaction to the news that WhiteFiber has filed a registration statement on Form S-1 with the U.S. SEC for a proposed IPO. Exactly how many shares WhiteFiber will place and at what price has not yet been determined, the parent company stated in the press release.

Bit Digital, founded in 2015, initially mined bitcoins, but in late 2023 decided to change its strategy to build data centers. It ordered GPUs from chipmaker Nvidia and sold capacity to third-party players. Last year, Bit Digital acquired Canadian data center builder Enovum for about CAD62.8 million (about $46 million). It named the operations WhiteFiber. 

Last year was a breakthrough for the company, Bit Digital stated in its full-year 2024 results in March. The strategy change drove revenue growth of more than 141% to $108.1 million, with new business lines accounting for nearly half of that, Bit Digital noted.

Following the earnings, Noble Capital Markets confirmed its $5.50 per share target price for the stock, for 150% upside to market quotes at the time.

In late June, Bit Digital announced another strategy shift: To become a pure play Ethereum staking and treasury company. As a result, it had started looking for "strategic alternatives" for its bitcoin mining operations, which, it stated, is expected to result in their sale or wind-down. The day after the announcement, June 26, the stock fell more than 15%. 

Bit Digital stock is still up 34% year to date. It has six ratings from Wall Street analysts, all of them being "buys," according to MarketWatch. The average target price is $6.08 per share, implying upside of nearly 55% versus the last close.

The AI translation of this story was reviewed by a human editor.