Case Details

This case examines the strategic crossroads faced by Bit Digital, a publicly listed Bitcoin mining company, as it evaluates entry into Ethereum staking and AI infrastructure. With rising scrutiny on the environmental footprint of proof-of-work mining and increasing interest in more sustainable technologies, Bit Digital must determine how to diversify its operations while maintaining profitability and competitive advantage. The case explores the trade-offs between energy-intensive Bitcoin mining, lower-emission Ethereum staking, and the high-growth yet capital-intensive world of AI infrastructure. Students are challenged to consider how blockchain and AI technologies intersect, the sustainability challenges in both sectors, and how a mid-sized tech firm should navigate disruptive innovation, regulatory concerns, and strategic allocation of resources. The case also touches on real-world corporate challenges such as public scrutiny, investor expectations, and shifting market dynamics in the wake of Ethereum's transition to proof-of-stake.