Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 141

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 141
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, 2025, the Company
entered into a Master Services Agreement (“MSA”) with a minimum purchase commitment of 40 GPUs, along with an associated purchase
order, from a new customer. The purchase orders provide for services utilizing a total of 40 H200 GPUs over a minimum of twelve (12) month
period, representing total revenue of approximately $750,000 for the term. The deployment commenced and revenue generation began on January
24, 2025, using the Company’s existing inventory of H200 GPUs.

4

Industry Overview 

We compete in the large and
rapidly growing data center and cloud services markets. The data center market refers to the industry dedicated to designing, building,
and managing data centers, essential for storing, processing, and managing vast amounts of digital information, including for AI and ML
applications. These centers house servers, networking equipment, and storage systems, ensuring seamless and secure data operation.

The cloud services market
represents the transmission of computer services, including storage, services, software, analytics, databases, networking, and intelligence,
via the internet (referred to as “the cloud”). More specifically, we are a NeoCloud service provider, with differentiated
services supporting AI workloads and specializing in deploying optimized infrastructures that include not just GPU fleets but also network
accelerators, high-speed storage, software solutions, and more. This infrastructure is essential for managing the massive data and computing
demands of AI training and inference tasks.

It is standard for GPU hardware
clusters, used in the rendering of cloud services, to be remotely housed in data centers, making these two segments highly related and
synergistic. Specially designed data centers host the hardware needed to provide HPC cloud services, and these are commonly referred to
as HPC data centers. According to experts at Schneider Electric, the industry is shifting away from traditional data centers that typically
hosted 10kw racks to newer 100kw racks that support HPC needs. We only design and develop HPC data centers, giving us a competitive advantage
over operators of traditional data center capacity.

According to McKinsey &
Company experts, power demand for data centers in the U.S. – driven by the need for digital and AI capabilities – is expected
to reach 606 terawatt-hours by 2030, up from 147 terawatt-hours in 2023 (312% growth). McKinsey estimates that data centers will amount
to 11.7% of total U.S. power