Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 94

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 94
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 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 18
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 elected to defer the commencement date until August 20, 2025, which is the latest allowable date under the agreement. Deployment
commenced on August 20, 2025, using the Company’s inventory of B200 GPUs.

In
October 2025, the Company’s existing parent guaranty arrangement with the Initial Customer was scheduled to expire. Beginning in
November 2025, the customer will provide a service deposit to the Company in lieu of the parent guaranty. The deposit will be funded
through fifteen consecutive monthly payments of approximately $0.24 million each, totaling $3.6 million, payable from November 2025 through
January 2027. The deposit will serve as security for the customer’s performance obligations under the amended service agreements.
Each monthly payment is expected to be invoiced on the first day of the month and paid within thirty days. The Company will be required
to return the deposit in cash upon termination or expiration of the service agreements, provided that all obligations have been fully
satisfied and no payment defaults or material breaches exist.

In
August 2024, we executed a binding term sheet with Boosteroid Inc. (“Boosteroid”), a global cloud gaming provider pursuant
to which, we finalized initial orders of 489 GPUs, projected to generate approximately $7.9 million in contracted value in the aggregate
through November 2029. The GPUs were delivered to respective data centers across the U.S. and Europe and began earning fees in November
2024. On October 9, 2024, we executed a Master Services and Lease Agreement (the “MSA”) with Boosteroid, pursuant to which
Boosteroid may, from time to time, lease certain equipment, including GPUs, from the Company upon delivery of a purchase order. The MSA