Allbirds (BIRD) surged as much as 400% after saying it will pivot from making sneakers into AI computation services, underscoring one of the market’s dominant themes: the race to secure scarce AI infrastructure.
The company said it agreed to sell its footwear brand to American Exchange Group (AXNY) and reinvent itself as NewBird AI, backed by a $50 million convertible financing facility to acquire processing units and build AI infrastructure.
The loan is roughly double the company’s $22 million pre-announcement market cap.
Demand for computing power to support AI is surging, while supply remains constrained. The scarcity has already prompted bitcoin miners such as Bitfarms, now renamed Keel (KEEL), and MARA Holdings (MARA) to reduce or abandon their crypto aspirations and switch their computing resources into supporting the AI industry.
Now, echoing the headlong rush into blockchain technology that engulfed companies such as Long Island Iced Tea Corp. in 2017, it seems even small-cap companies are attempting to position themselves to capture the AI opportunity.
Allbirds’ pivot comes after a steep decline in its core business. Full-year revenue at the unprofitable company fell 20% in 2025 and 25% the year before, and it closed all of its remaining full-price stores in the U.S. earlier this year.
The stock down roughly 99% from its peak. The shares, which closed $2.49 on Tuesday, surged to as high as $12.72 and were recently trading around $11.
Convertible financing means the investor initially provides capital to the company as debt, and can later convert it into equity, often at a discount, which can lead to significant dilution for existing shareholders.
UPDATE (April 15, 14:34 UTC): Updates share price move, adds bitcoin miners in fourth paragraph, Long Island Iced Tea in fifth.
UPDATE (April 15, 14:41 UTC): Adds company performance in sixth paragraph.
