Company: BTBT
Filing Date: 2025-06-26
Form Type: 424B5
Source: 0001213900-25-058407
Chunk: 48

Company: Bit Digital, Inc
Filing Date: 2025-06-26
Form: 424B5
Chunk 48
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our cloud services at data centers across key regions in Europe and North America. In the fourth quarter of 2023, we secured our first
cloud customer through a three-year service agreement to provide services using our advanced AI equipment. We believe that both of our
businesses are poised to benefit from increased market demand. This is illustrated by our demonstrated ability to pre-sign end users
prior to committing capital for expansions, both for new data center sites and for GPU server procurement.

The digital asset business segment of the Digital
Infrastructure Business (the “Digital Asset Business Segment”) is comprised primarily of two distinct but highly complementary
operations: (i) digital asset mining (the “Digital Asset Mining Operations”); and (ii) ETH staking (the “ETH Staking
Operations”).

Cloud Services

We provide specialized cloud services to support
generative AI workstreams, especially training and inference, emphasizing cost-effective utility and tailor-made solutions for each client.
We are an authorized Network Control Processor (“NCP”) with NVIDIA, an authorized partner with SuperMicro Computer Inc.,
an authorized Communications Service Provider (“CSP”) with Dell, and an official partnership with Hewlett Packard Enterprise.
We are proud to be among the first service providers to offer H200, B200, and GB200 servers. We provide a high-standard service level
with an Uptime Percentage* ≥ 99.5%.

The economics of our cloud services business drive
attractive returns. The implied per unit capex for high performance GPUs currently ranges from approximately $30,000 for an NVIDIA H200
to approximately $50,000 for an NVIDIA B200 (Blackwell generation) GPU, inclusive of networking, setup, shipping, and other expenses.
We anticipate capex will be financed by a combination of debt and equity. We expect contract duration with our cloud services customers,
comprised of established enterprises and well-funded AI startups, to be approximately 36 months, with an initial cost per card hour of
$2.15 to $3.40, with a 15% annual per hour decline rated, translating to estimated annual revenue of between $18,000 and $30,000, assuming
an 85% utilization rate. We anticipate a profit margin of approximately 78% driven by high utilization rates, stable energy costs, and
economies of scale in procurement and infrastructure management.

We are actively engaged in research and development
efforts to enhance our cloud services capabilities for our customers. For example, we are developing integrated software