Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 143

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 143
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 due to high energy consumption and
carbon emissions. The sustainability movement for data centers is driven by organizations’ environmental, social and governance
commitments and the rise of laws and regulations supporting sustainability. For example, the Paris Accord, which was entered into force
on November 4, 2016, is currently in effect across 174 countries apart from the United States and aims to curb long-term global warming.
Our facilities in Quebec and Iceland benefit from clean, hydroelectric power generation, and we will seek to offer comprehensive HPC data
center and cloud services solutions while prioritizing sustainability and energy efficiency.

Strategic Relationships

Financing

In
January 2025, we entered into a non-binding Memorandum of Understanding (MOU) with an institutional investor to form a programmatic joint
venture (the “Joint Venture”) for the development, construction and operation of data centers within the U.S., Canada, and
Latin America. In this regard, the MOU identifies certain properties, collectively, as the Seed Project for the Joint Venture, requiring
approximately $53 million of equity commitments, of which we will commit 30% and our partner the remaining 70%. The MOU provides that
over time, the parties wish to invest in data center opportunities (other than the Seed Project) with aggregate capitalization of $2 billion
and implied equity commitments of approximately $500 million (assuming customary use of leverage). We will be responsible for development
management, construction management, and asset management services with regard to the projects of the Joint Venture, and we will be entitled
to earn certain fees for the provision of these services. We will also
be entitled to receive a promoted interest, in addition to returns on our pro rata equity investments into the Joint Venture. The MOU
binds the parties to use their commercially reasonable efforts to negotiate and execute mutually agreed definitive transaction documents.

We believe that the signing
of this MOU is illustrative of strong market demand from institutional private equity investors for exposure to the types of projects
in our data center pipeline and our capability to develop them. We believe that we are well positioned to capitalize on this demand by
forming one or more equity joint ventures with the aforementioned partner. Doing so would provide us access to a differentiated and non-dilutive
source of private equity capital to fund our projects, and deliver a durable stream of cash flows in the form of management fee income
for our services.

Technology

We have established formal
relationships with leading technology providers, including Nvidia,