Allbirds (BIRD) rocketed as much as 400% after revealing plans to abandon its sneaker business and reinvent itself as an AI computing services provider. The company struck a deal to sell its footwear brand to American Exchange Group (AXNY) and emerge as NewBird AI, backed by a $50 million convertible financing facility to acquire processing units and build AI infrastructure.
That loan nearly doubled the company's pre-announcement market cap of roughly $22 million, underscoring investors' eagerness to bet on scarce AI infrastructure. The pivot echoes a broader trend: Bitcoin miners such as Bitfarms (now Keel, KEEL) and MARA Holdings (MARA) have already scaled back or abandoned crypto mining to redirect their computing resources toward AI.
Allbirds' core business had been in steep decline. Full-year revenue fell 20% in 2025 and 25% the year before, and the unprofitable company shuttered all its remaining full-price stores in the U.S. earlier this year. Its stock had lost roughly 99% from its peak before the announcement.
The shares closed at $2.49 on Tuesday, then surged to as high as $12.72, and were recently trading around $11. The convertible financing structure means investors initially provide capital as debt, with the option to convert into equity at a discount, potentially causing significant dilution for existing shareholders.