NEW YORK, June 25, 2024 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a sustainable digital asset platform and artificial intelligence (“AI”) infrastructure headquartered in new york, announced today that it has entered into an agreement to supply an existing customer with an additional 2,048 GPUs over a three-year term beginning upon deployment. With this agreement, the company will supply this customer with a total of 4,096 GPUs for the respective three-year periods, a total revenue of approx. $275 millionor $92 million on an annual basis.
To fulfill the contract, the company has placed a purchase order for 256 servers manufactured by Dell Technologies, an authorized Nvidia OEM, which are equipped with 2,048 Nvidia HGX H100 GPUs along with related equipment, which are expected to be delivered to the company during July 2024. The servers will be deployed in Iceland at the data center where the company’s existing AI servers are located and are expected to start generating revenue August 2024.
The company intends to finance the deal with a mixture of cash and digital assets on the balance sheet. Bit Digital has elected to enter into a sale-leaseback agreement with a third-party entity for 1,024 GPUs that will proportionately reduce the company’s capital expenditures. Additionally, the Company continues to evaluate debt financing options that would allow the Company to retroactively finance its hardware assets.
Sam TabarThe CEO of Bit Digital, commented: “We are pleased to finalize terms with our customer to expand their deployment to more than 4,000 GPUs. This agreement contributes significantly to our goal of a $100 million annual revenue run-rate at the end of 2024, brings us to more than 90% of this goal. Our primary goal in the HPC business is to execute effectively for our customers and help them achieve their AI ambitions. We continue to see a robust growth trajectory for this segment and look forward to even further scaling as the year progresses.
About Bit Digital
Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence (“AI”) infrastructure headquartered in New York City. Us bitcoin mining companies are in the US, Canadaand Iceland. The company has established a business line, Bit Digital AI, which offers infrastructure services for artificial intelligence applications. For additional information, please contact (email protected) or visit our website www.bit-digital.com.
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Investing in our securities involves a high level of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements under “Risk Factors” in Item 3.D of our most recent Annual Report on Form 20-F for the fiscal year ended. December 31, 2023. If a material risk were to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities may decline and you may lose part or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks that are not currently known to us or that we do not currently consider material may also affect our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate can also materially affect the future performance of Bit Digital’s production of bitcoin. Actual operating results will vary depending on many factors, including network difficulty level, total network hash rate, the operations of our facilities, the status of our miners, and other factors.
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SOURCE Bit Digital, Inc.