Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1347

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1347
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 $0.9 million per year. Bit Digital expects the GPUs to be delivered to respective data centers across the U.S. and begin
earning revenue by the end of November 2024. The MSA provides Boosteroid with the option to expand in increments of 100 servers, up to
50,000 servers, representing a potential $700 million revenue opportunity for Bit Digital over the five-year term, contingent on deployment
plans and market conditions.

On December 30, 2024, we entered into a Master
Services Agreement (“MSA”) with a minimum purchase commitment of 32 GPUs, along with an associated purchase order, from a
new customer, an AI Compute Fund managed by DNA Holdings Venture Inc. The purchase order provides for services utilizing a total of 576
H200 GPUs over a twenty-five month period, terminable by either party upon at least 90 days’ written notice prior to any renewal
date. It represents an aggregate revenue opportunity of approximately $20.2 million. Concurrently, we placed a purchase order for 130
H200 servers for approximately $30 million. The deployment commenced in February 2025.

100

We expect to also generate ongoing revenues from
the production of digital assets, primarily bitcoin. Our ability to liquidate digital assets at future values will be evaluated from time
to time to generate cash for operations. Generating digital assets, for example, with spot market values which exceed our production and
other costs, will determine our ability to report profit margins related to such mining operations. Furthermore, regardless of our ability
to generate revenue from our high performance computing business, or our digital asset business, we may need to raise additional capital
in the form of equity or debt to fund our operations and pursue our business strategy, including purchases in order to fund our high performance
computing business.

The ability to raise funds such as equity, debt
or conversion of digital assets to maintain our operations is subject to many risks and uncertainties and, even if we are successful,
future equity issuances would result in dilution to our existing stockholders and any future debt or debt securities may contain covenants
that limit our operations or ability to enter into certain transactions. Our ability to realize revenue through digital asset production
and successfully convert digital assets into cash or fund overhead with digital assets is subject to a number of risks, including
regulatory, financial and business risks, many of which are beyond our control. Additionally, the value of digital asset rewards has historically
been extremely volatile