The Yankees announced Wednesday that Bird opted to test the market rather than be sent to the minors after clearing waivers.
Bird was designated for assignment on Nov. 20, which allowed the Yankees to open up a spot on their 40-man roster.
Injuries have been a significant problem for Bird throughout his professional career. The 27-year-old has never played more than 82 games in a season since making his MLB debut in 2015. He had to sit out all of 2016 after undergoing surgery to repair a torn labrum.
When Bird has been able to play, he hasn't made much of an impact with the bat. He owns a .211/.301/.424 slash line with 32 homers and 98 RBI in 186 games and has had negative wins above replacement totals in 2017 (-0.3) and 2019 (-0.1), per FanGraphs.
Luke Voit established himself as New York's regular first baseman last season, making Bird expendable for the reigning American League East champions.
Given the limited playing time Bird has had over the course of his career, he could be a buy-low option for teams in need of a power hitter.