NEW
YORK, Jan. 24, 2025 /PRNewswire/ -- Bit Digital,
Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a global
platform for high-performance computing ("HPC") infrastructure and
digital asset production headquartered in New York, today announced a new agreement with
a key customer for 464 Nvidia B200 GPUs, expanding its GPU Cloud
business. This new agreement replaces a prior agreement whereby the
Company was to provide the customer with an incremental 2,048 H100
GPUs and the Company continues to explore additional GPU contracts
with this customer for 2025.
Under the terms of the agreement, Bit Digital will provide the
customer with 58 Nvidia B200 servers (464 GPUs) for a period of
eighteen months. The contract represents approximately $15 million of annualized revenue for Bit Digital
and features a two-month prepayment from the customer. However, the
customer may deduct 100% of the service fees from the $30 million non-refundable deposit previously
paid to the Company. The contract is scheduled to commence on
June 30th, 2025, and the
GPUs will be deployed in Iceland.
To fulfill the contract, Bit Digital has placed an order for 58
Nvidia B200 servers for approximately $21MM which are expected to
be delivered well in advance of the service commencement date. Bit
Digital intends to finance the purchase with cash and customer
deposits and intends to retain complete ownership of the
servers.
Sam Tabar, CEO of Bit Digital,
commented: "We are pleased to have reached this agreement with a
key customer. This contract delivers significantly improved margins
compared to the original plan, which included a sale-leaseback
agreement for a portion of the deployment. We look forward to
exploring additional new business with this customer for 2025 while
remaining focused on execution."
About Bit Digital
Bit Digital, Inc. is a global platform for high-performance
computing ("HPC") infrastructure and digital asset production
headquartered in New York City.
Our operations are located in the US, Canada, and Iceland. For additional information, please
contact ir@bit-digital.com or visit our website
at www.bit-digital.com.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 3.D of our Annual Report on Form 20-F
for the fiscal year ended December 31,
2023 ("Annual Report"). Notwithstanding the fact that Bit
Digital Inc. has not conducted operations in the PRC since
September 30, 2021 we have previously
disclosed under Risk Factors in our Annual Report: "We may be
subject to fines and penalties for any noncompliance with or any
liabilities in our former business in China in a certain period from now on."
Although the statute of limitations for non-compliance by our
former business in the PRC is generally two years and the Company
has been out of the PRC, for more than two years, the Authority may
still find its prior bitcoin mining operations
involved a threat to financial security. In such event, the
two-year period would be extended to five years. If any material
risk was to occur, our business, financial condition or results of
operations would likely suffer. In that event, the value of our
securities could decline and you could lose part or all of your
investment. The risks and uncertainties we describe are not the
only ones facing us. Additional risks not presently known to us or
that we currently deem immaterial may also impair 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 may 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 rate, total hash rate
of the network, the operations of our facilities, the status of our
miners, and other factors. See "Safe Harbor Statement" below.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of Bit Digital, Inc., and its
subsidiary companies. All statements, other than statements of
historical fact included herein are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects," or
similar expressions, involving known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that
are filed with the Securities and Exchange Commission and available
on its website at http://www.sec.gov. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
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SOURCE Bit Digital, Inc.
