Company: BTBT
Filing Date: 2025-04-30
Form Type: S-3
Source: 0001213900-25-037166
Chunk: 12

Company: Bit Digital, Inc
Filing Date: 2025-04-30
Form: S-3
Chunk 12
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 rapid expansion of their compute infrastructure. From a financial standpoint, our vertically
integrated solution allows us to capture additional margin for both of our HPC data center and cloud services businesses, avoiding expenses
that would otherwise be due to third-party providers.

Our cloud services business provides cutting-edge,
bespoke services involving a sophisticated array of computers and chips, including NVIDIA GPUs, servers, network equipment, and data storage
solutions. We believe we provide our cloud services customers with the highest levels of performance and reliability while offering flexibility
to scale with customer needs. Our cloud services solutions include a proprietary software layer that enables our customers to rapidly
and reliably deploy AI applications with superior performance. We are offering our cloud services initially at a data center maintained
by a third-party colocation provider in Iceland (the “Iceland Data Center”) but have plans to seamlessly integrate our cloud
services at data centers across key regions in Europe and North America. In the fourth quarter of 2023, we secured our first cloud customer
through a three-year service agreement to provide services using our advanced AI equipment. We believe that both of our businesses are
poised to benefit from increased market demand. This is illustrated by our demonstrated ability to pre-sign end users prior to committing
capital for expansions, both for new data center sites and for GPU server procurement.

The digital asset business segment of the Digital
Infrastructure Business (the “Digital Asset Business Segment”) is comprised primarily of two distinct but highly complementary
operations: (i) digital asset mining (the “Digital Asset Mining Operations”); and (ii) ETH staking (the “ETH Staking
Operations”).

Cloud Services

We provide specialized cloud services to support
generative AI workstreams, especially training and inference, emphasizing cost-effective utility and tailor-made solutions for each client.
We are an authorized Network Control Processor (“NCP”) with NVIDIA, an authorized partner with SuperMicro Computer Inc.®,
an authorized Communications Service Provider (“CSP”) with Dell, and an official partnership with Hewlett Packard Enterprise.
We are proud to be among the first service providers to offer H200, B200, and GB200 servers. We provide a high-standard service level
with an Uptime Percentage* ≥ 99.5%.

The economics of our cloud services business drive
attractive returns. The implied per unit capex for high performance GPUs currently ranges from approximately $30,000 for an NVIDIA
H200 to approximately $50,000 for an NVIDIA B200 (Blackwell generation) GPU