FTX’s crypto mining venture is now used to advance AI

The investment company SWI Group has raised about $900 million in capital as part of plans to scale its data center and AI computing capacity, which includes a mining operation previously tied to cryptocurrency exchange FTX.

In a Monday notice, SWI Group said the 800-million-euro, or about $900 million, capital raise would fund its AI and data center expansion plans in Europe and the United States. The group reportedly now has majority control over one of FTX’s mining companies, Genesis Digital Assets, which will now be a part of the network of data centers’ computing capacity.

SWI announced in June that it had acquired “significant shareholding” in Genesis for $500 million. At the time, the company reported that Genesis had 15 facilities with 1.3 gigawatts of capacity. The firm said that it held a 70% stake in Genesis as of August, allowing it to rename the mining venture to SWI Digital.

The acquisition of Genesis, one of the assets embroiled in FTX’s downfall, came as the debtors behind the crypto exchange’s bankruptcy proceedings sought to claw back funds. Former FTX CEO Sam Bankman-Fried reportedly directed the exchange’s sister firm, Alameda Research, to spend more than $1 billion to buy a 20% stake in Genesis between 2021 and 2022.

FTX filed for bankruptcy in November 2022, leading to criminal charges for many executives over the misuse of customer funds. SWI’s co-founder and CEO Max-Hervé George reportedly said all the legal disputes related to FTX’s stake in Genesis had been resolved.