Bit Digital spins out AI unit as banks shy away from crypto exposure, CEO says

Core Viewpoint - Bit Digital has decided to separate its AI infrastructure business, now operating as WhiteFiber, to better align with investor expectations and improve access to credit [1][2]. Group 1: Reasons for Separation - The separation was driven by two main factors: alignment with investors and access to financing [2][5]. - High performance computing (HPC) is viewed as an institutional product, while digital assets are seen as more retail-oriented, necessitating different investor bases [3][4]. Group 2: Impact on Financing - After the spinout, WhiteFiber's shareholding became primarily institutional, which has led to a better understanding of the economics of data centers and HPC [4]. - Traditional banks are more willing to finance data center developments when they are not associated with digital assets, leading to expanded financing options for WhiteFiber [5][6]. - The cost of capital for WhiteFiber has decreased since the separation, as it no longer has any digital assets involved [6].