BTC Digital secures $7 million financing to build AI computing center in Georgia

BTC Digital Raises $7 Million Financing For Strategic AI Pivot

BTC Digital secured approximately $7 million in upfront proceeds through a private placement financing aimed at accelerating its transition from cryptocurrency mining to AI computing infrastructure 1

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. The financing announced by the NASDAQ-listed company marks the launch of its 8 MW AI computing center in Georgia, representing a significant strategic shift for the Bitcoin mining operator 2

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The financing included the sale of 6,140,350 units at $1.14 per unit, consisting of ordinary shares or pre-funded warrants and common warrants exercisable at $1.71 per share 2

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. Including associated warrants, the financing could generate up to approximately $28 million in total gross proceeds if fully exercised on a cash basis, though no assurance can be given that any warrants will be exercised 1

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. The common warrants are exercisable immediately and expire 60 months after issuance 2

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Building AI Computing Infrastructure From Mining Foundations

The initial funding will support the first phase of BTC Digital's transition, covering liquid-cooling systems and power infrastructure, facility upgrades, and the buildout of a data center operations team 1

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. The company intends to use the proceeds to fund construction at the Georgia site, including liquid-cooling and power-supply equipment, facility retrofitting, and formation of operations personnel 2

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BTC Digital expects to bring part of the initial capacity online within six months and begin generating AI hosting revenue after securing its first anchor tenant 1

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. The Georgia site has a total site load of 25 megawatts, with 20 megawatts approved and backed by a dedicated substation 2

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. The company owns 62 acres of land at the location and has a completed steel building on the property 2

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From Cryptocurrency Mining To High-Performance Computing

BTC Digital operates under a wholesale colocation model, supplying power, data center space, networking, and operations while customers provide their own GPUs 2

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. The company sees a long-term target of scaling the site to approximately 20 megawatts of AI computing capacity based on tenant demand, operating performance, and future financing 1

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This transition is significant as demand for AI computing is surging, and BTCT's existing resources position it well to capture this market opportunity 1

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. The company has also entered into a joint development agreement with Aurora Energy Ltd. to establish an off-grid natural gas-powered computing infrastructure project in Alberta, Canada, with an initial phase aiming to develop a 5-10 MW facility supporting Bitcoin mining operations initially, with potential expansion into AI computing and other high-performance computing applications 2

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Stock Surge Reflects Market Enthusiasm

BTCT shares were up 62.52% at $1.11 during premarket trading on Tuesday, reflecting investor enthusiasm for the company's strategic pivot 1

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. The transaction closed Monday, with Aegis Capital Corp. acting as exclusive placement agent for the private placement 2

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. The capital raise is significant for a company with a market cap of just $6.49 million 2

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