Former FTX Mining Operation Pivots to Artificial Intelligence Infrastructure
Before the exchange's collapse and bankruptcy filing in November 2022, the defunct trading platform had purchased a 20% ownership stake in Genesis Digital Assets.
SWI Group, a firm specializing in investment opportunities, has successfully secured approximately $900 million in funding as it works toward expanding its artificial intelligence computing infrastructure and data center operations, which now incorporate a mining business that was once connected to the collapsed FTX cryptocurrency exchange.
According to an announcement released on Monday, SWI Group disclosed that the capital raise of 800 million euros, equivalent to roughly $900 million, will support the company's expansion initiatives for AI infrastructure and data centers across both European and United States markets. Reports indicate that the group has now obtained controlling interest in Genesis Digital Assets, a mining firm that was among FTX's investments, and this entity will be integrated into the computing capacity network of data centers.
In an announcement made during June, SWI revealed its acquisition of "significant shareholding" in Genesis through a transaction valued at $500 million. During that period, the company disclosed that Genesis operated 15 facilities with a combined capacity of 1.3 gigawatts. According to the firm's statements, it secured a 70% ownership stake in Genesis by August, which enabled the company to rebrand the mining operation under the new name SWI Digital.
Genesis, being one of the various assets caught up in the aftermath of FTX's collapse, was acquired while the debtors managing the cryptocurrency exchange's bankruptcy case were attempting to recover funds. Reports indicate that Sam Bankman-Fried, who served as FTX's CEO before the collapse, instructed the exchange's affiliated trading company, Alameda Research, to allocate over $1 billion toward purchasing a 20% ownership position in Genesis during the period spanning 2021 to 2022.
The cryptocurrency exchange FTX submitted its bankruptcy filing in November 2022, which subsequently resulted in criminal charges being brought against numerous executives for the improper handling of customer funds. According to reports, Max-Hervé George, who serves as co-founder and CEO of SWI, stated that all legal disputes and proceedings connected to FTX's ownership stake in Genesis have now been fully resolved.