Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 79

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 79
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 initial data center partnership through which
we lease capacity is at Blönduós Campus, Iceland, offering a world-class operations team with certified technicians and reliable
engineers. The facility has 45kW rack density and 6 MW (gross) total capacity. We have executed contracts for 5.5 MW at the data center.
The center’s energy source is 100% renewable energy, mainly from Blanda Hydro PowerStation, the winner of an IHA Blue Planet Award
in 2017.

The following summaries reflect selected GPU cloud
service agreements that we consider to be material or representative. We have entered into additional agreements that are not individually
material and are not included below.

On October 23, 2023, Bit Digital announced
that it had commenced AI operations by signing a binding term sheet with a customer (the “Initial Customer”) to support
the customer’s GPU workloads. On December 12, 2023, we finalized a Master Services and Lease Agreement (“MSA”), as
amended, with our Initial Customer for the provision of cloud services from a total of 2,048 GPUs over a three-year period. To
finance this operation, we entered into a sale-leaseback agreement with a third party, selling 96 AI servers (equivalent to 768
GPUs) and leasing them back for three years. The total contract value with the Initial Customer for the aggregated 2,048 GPUs was
estimated to be worth more than $50 million of annualized revenue. On January 22, 2024, approximately 192 servers (equivalent to
1,536 GPUs) were deployed at a specialized data center and began generating revenue, and subsequently on February 2, 2024,
approximately an additional 64 servers (equivalent to 512 GPUs) also started to generate revenue.

In the second quarter of 2024, we finalized an
agreement to supply our Initial Customer with an additional 2,048 GPUs over a three-year period. To finance this operation, we entered
into a sale-leaseback agreement with a third party, agreeing to sell 128 AI servers (equivalent to 1,024 GPUs) and leasing them back for
three years. In late July, at the customer’s request, we agreed with the customer to temporarily delay the purchase order so the
customer could evaluate an upgrade to newer generation Nvidia GPUs. Consequently, the Company and manufacturer postponed the purchase
order. In early August, the customer