Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 134

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 134
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 with customer lease commitments in-hand, and we are currently
in negotiation with a prospective customer to adapt a site to the customer’s specific requirements.

In addition to providing highly
desirable HPC data center hosting capacity to our customers, our business model integrates HPC data center infrastructure and cloud service
to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI-driven businesses. Our integrated
approach aligns specialized data center operations with GPU-focused cloud services, addressing the unique requirements of AI and HPC workloads.
These workloads demand greater power density, advanced cooling solutions, and robust bandwidth to handle large-scale data transfers. By
operating our data centers, we believe we can better meet these needs and reduce the complexity associated with procuring power and connectivity
from external vendors. We can also design our facilities to accommodate the higher heat loads generated by modern GPUs, potentially shortening
deployment timelines for customers who require rapid expansion of their compute infrastructure. From a financial standpoint, our vertically
integrated solution allows us to capture additional margin for both of our HPC data center and cloud services businesses, avoiding expenses
that would otherwise be due to third-party providers.

Our cloud services business
provides cutting-edge, bespoke services involving a sophisticated array of computers and chips, including NVIDIA GPUs, servers, network
equipment, and data storage solutions. We believe we provide our cloud services customers with the highest levels of performance and reliability
while offering flexibility to scale with customer needs. Our cloud services solutions include a proprietary software layer that enables
our customers to rapidly and reliably deploy AI applications with superior performance. We are offering our cloud services initially at
a data center maintained by a third-party colocation provider in Iceland (the “Iceland Data Center”) but have plans to seamlessly
integrate 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 posted 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.

For the 12 months ended December
31, 2024, our cloud service business recognized revenue of $45.7 million,

1

We believe our HPC business
is positioned for significant growth, driven by the increasing demand for advanced computing and AI services