FTX’s crypto mining venture is now used to advance AI
The defunct exchange acquired a 20% stake in Genesis Digital Assets before FTX declared bankruptcy in November 2022.
In a Monday notice, SWI Group announced it had raised approximately $900 million in capital to expand its data center and AI computing capacity. The money will be used to bolster the mining operation previously associated with cryptocurrency exchange FTX. The investment firm now holds majority control over Genesis Digital Assets, one of FTX's mining companies, which will now be integrated into SWI's network of data centers' computing power.
SWI acquired a significant shareholding in Genesis for $500 million in June, signaling its intent to play a larger role in the firm's operations. As of August, SWI owned a 70% stake in Genesis, enabling it to officially rename the mining venture to SWI Digital. The acquisition of Genesis came amid FTX's bankruptcy proceedings, with former CEO Sam Bankman-Fried allegedly directing Alameda Research to invest over $1 billion to obtain a 20% stake in Genesis between 2021 and 2022.
The bankruptcy filing led to criminal charges against multiple FTX executives for misusing customer funds. SWI's co-founder and CEO, Max-Hervé George, claimed all legal disputes related to FTX's stake in Genesis had been resolved.
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