Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 75

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 75
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 York City. On June 25, 2025, the Company
announced that it has initiated a strategic transition to become a pure play Ethereum staking and treasury company. The Company began
accumulating ETH and operating staking infrastructure in 2022 and has steadily increased its holdings since that time.

HPC Business

We believe we are a leading provider of artificial
intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide
cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application
and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation
services. Our cloud services support generative AI workstreams, especially training and inference.

Data centers

We design, develop, and operate data centers,
through which we offer our hosting and colocation services. Our operational data centers meet the requirements of the Tier-3 standard,
including N+1 redundancy architecture, concurrent maintainability, uninterruptible power supply, advanced and highly reliable cooling
systems, strict monitoring and management systems, SOC 2 Type 2, differentiated software supporting AI workloads, high density and robust
bandwidth, and infrastructure to support AI workloads.

On July 30, 2025, we entered into a Contribution
Agreement with WhiteFiber, pursuant to which we agreed to contribute our HPC business through the transfer of 100% of the capital shares
of our cloud services subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc., WhiteFiber Canada, Inc.,
WhiteFiber Japan G.K. and WhiteFiber Iceland, ehf, to WhiteFiber, upon the effectiveness of WhiteFiber’s registration statement
on Form S-1 in connection with WhiteFiber’s initial public offering. For more information, see Note 21. Subsequent Events
in our Notes to Unaudited Condensed Consolidated Financial Statements included elsewhere herein.

We acquired Enovum Data Centers Corp (“Enovum”)
on October 11, 2024. The transaction included the lease to MTL-1, a fully operational and fully leased to customers 4 MW (gross) Tier-3
datacenter headquartered in Montreal, Canada.

On December 27, 2024, we acquired the real estate
and building for a build-to-suit 5 MW (gross) Tier-3