FTX's Crypto Mining Investment Is Now Being Used to Advance AI

The defunct exchange acquired 20% of Genesis Digital Assets' shares before FTX filed for bankruptcy in November 2022.

The defunct exchange acquired a 20% stake in Genesis Digital Assets before FTX filed for bankruptcy in November 2022.

Investment firm SWI Group has raised about $900 million in capital as part of plans to expand its data center computing capacity and artificial intelligence, which includes the mining operation formerly associated with cryptocurrency exchange FTX.

In an announcement on Monday, SWI Group said the capital increase of 800 million euros, or about $900 million, will fund its AI and data center development programs in Europe and the United States. According to reports, the group now has majority control over one of FTX's mining companies, Genesis Digital Assets, which will now be part of the data center computing capacity network.

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

The purchase of Genesis, one of the assets involved in the FTX collapse, came as creditors behind the cryptocurrency exchange's bankruptcy proceedings sought to recoup funds. Former FTX CEO Sam Benkman-Fried has reportedly ordered the exchange's sister firm, Alameda Research, to spend more than $1 billion to buy a 20 percent stake in Genesis between 2021 and 2022.

FTX filed for bankruptcy in November 2022, which has led to criminal charges against many executives for misappropriating client funds. SWI founder and CEO Max Herro George said all legal disputes involving FTX's stake in Genesis had been resolved.