Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 123

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 123
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 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. 

69

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 made a non-refundable prepayment of $30.0 million for the services to be rendered under this agreement.

In January 2025, the Company entered into a new
agreement to supply its Initial Customer with an additional 464 GPUs for a period of eighteen months. This new agreement replaces the
prior agreement whereby the Company was to provide the customer with an incremental 2,048 H100 GPUs. The contract represents approximately
$15 million of annualized revenue and features a two-month prepayment from the customer. The customer has elected to defer the commencement
date until August 20th, 2025, which is the latest allowable date under the agreement.

On October 9, 2024, we executed a Master Service
Agreement (the “MSA”) with Boosteroid Inc. (“Boosteroid”), a global cloud gaming provider. Following execution
of a binding term sheet with Boosteroid on August 19, 2024, we finalized initial orders of 489 GPUs, projected to generate approximately
$7.9 million in contracted