Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1305

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1305
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 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.

Cloud Services

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. 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.

77

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 to automate layering
of stacks and self-service portals on top of the cross-data center fabric, allowing our customers to access GPU or CPU nodes on demand—no
matter where they physically reside. This provides significant flexibility as scaling is required to accelerate development of AI applications.
In addition, we are working on advanced interconnect technologies like InfiniBand (IB) or RDMA over Converged Ethernet (“RoCE”).
When combined with cross-data center links, these ensure that training jobs can be distributed without bottlenecks or high latency. By
emphasizing scale, performance, and reliability, we believe that we will be positioned to maximize customer retention while pricing our
services at a premium to those offered by our competitors.

We leverage a global network of data center resources
by partnering with eight third-party data center providers to achieve high autonomy in locations across Europe, Canada, and the U.S. Our
initial HPC data center partnership through which we lease capacity is at BlöndUos Campus, Iceland, offering a world-class operations
team with certified technicians and reliable engineers. The facility has 50kW rack density and 6MW total capacity