Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 139

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 139
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 To
finance this operation, the Company 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, the Company and the
customer agreed 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.

3

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.

On October 9, 2024, the Company executed a Master
Services and Lease Agreement (“MSA”) with Boosteroid Inc. (“Boosteroid”), a global cloud gaming provider, following
a binding term sheet with Boosteroid on August 19, 2024. We finalized an initial order of 300 GPUs, projected to generate approximately
$4.6 million in revenue over the five-year term. The GPUs will be deployed by Boosteroid at respective data centers across the U.S. and
we began earning revenue in November 2024. We finalized an additional order of 189 GPUs, projected to generate approximately $3.2 million
in revenue over the five-year term. The GPUs will be deployed by Boosteroid at respective data centers across the Europe and we began
earning revenue in December 2024. The MSA provides Boosteroid with the option to expand in increments of 100 servers, up to 50,000 servers,
representing a potential $700 million revenue opportunity over the five-year term, subject to deployment plans and market conditions.

On November 6, 2024, the Company
entered into a Master Services Agreement (“MSA”) with a minimum purchase commitment of 16 GPUs, along with an associated purchase
order, from a new customer. The purchase order provides for services utilizing a total of 16 H200 GPUs over a minimum of six (6) month
period, representing total revenue of approximately $320,000 for the