SWI pays about $500,000 per attributable megawatt for FTX's old bitcoin-mining grid connections

Spread the price across the power and it comes to about $500,000 a megawatt (or rather, per attributable megawatt, since some of the company is not SWI's). SWI paid $500 million for roughly 77% of Genesis Digital Assets ^[1]. Grossed up, that values the whole company at about $649 million ^[13]. The 1.3 GW of connections ^[3] is 1,300 MW, 77% of that is about 1,001 MW, and $500 million over 1,001 MW is $499,500 a megawatt ^[14]. The figure holds only if the preferred shares ^[2] were priced pro rata with common equity.

There are two readings of that price. In the buyer's version, SWI chief executive Max-Hervé George framed the acquisition around one word, connectivity, and described it as a strategic pivot from crypto mining to AI workloads, according to Crypto Briefing ^[6]. The sites are then worth what an AI developer would pay for power that is already energized and approved ^[3]. In the other version, the price reflects a seller coming out of a legal freeze. GDA's assets sat in the FTX bankruptcy process for years ^[7], and Crypto Briefing suggests the dismissal of the lawsuit against GDA cleared the path for a buyer ^[16]. Some of the $500,000 would then pay for the dismissal as well as the megawatts.

We think the first reading carries more of the price, since the stated plan is to convert the infrastructure for AI and high-performance computing workloads ^[12]. But that is intent, and a stated plan is not a price comparison. The deal summary did not include a price for a mining-only site, so nothing in the report shows that $500,000 a megawatt beats what a miner would pay for the same interconnect.

We would be wrong if GDA's mining cash flows cover most of the $649 million on their own, or if SWI leaves most of the sites mining after the conversion it has announced.