Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 136

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 136
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 loop to further enhance the sustainability profile of the data center.
The facility will be powered by 100% renewable hydroelectricity provided by Hydro-Quebec. Subject to the approval of Hydro-Quebec, additional
capacity may be available at this site. This dynamic illustrates our strategy of underwriting site acquisition in Quebec based on in-place
power but benefitting from significant incremental HPC data center capacity expansion with increased power. We anticipate dedicating a
portion of MTL 2’s capacity to house GPUs for our cloud services business. Enovum enjoys significant embedded demand from existing
customers, and is in receipt of requests in excess of our short term MW availability..

We use a well-defined set
of criteria to select our data center sites. We actively target sub-20MW sites with proximity to metro areas and partial infrastructure
in place, where we are retrofitting rather than developing greenfield projects. A retrofit entails sourcing and acquiring an existing
industrial building with underutilized, in-place power connectivity. Our average build time for retrofits is six months, which we believe
is approximately one-third to one-half of the industry average development timeline for greenfield projects. We are also developing a
proprietary software capability that will link clusters across multiple sites, leveraging existing dark fiber networks connecting smaller
data centers within a radius of approximately 700 kilometers. By productizing cross-data center operation, we intend to create a single
supercluster, enabling us to sidestep potential fragmentation problems and dynamically “borrow” compute or storage resources
from any site. We also prioritize sites offering opportunities to increase site power over time, enabling our HPC data centers to grow
with customer demand. In addition, we selectively target certain larger opportunities with 50MW of power or more, subject to customer
demand, to drive AI-driven compute super-clusters. Finally, we target sites powered by sustainable, green energy sources.

We believe that our HPC
data center development and operating model provides highly attractive economics for our investors. We estimate that our capex
requirement to develop a cutting edge, Tier-3 data center is between $7 - $9 million per MW. Consistent with common industry
practice, approximately 70-75% of this capex budget will be financed with facility-level debt, with the remaining capex requirement
equity financed. Based on ongoing discussions with prospective customers, we anticipate that the average contract term for our AI
and ML-focused enterprise and GPU compute customers will be 4-12