Company: BTBT
Filing Date: 2025-04-30
Form Type: S-3
Source: 0001213900-25-037166
Chunk: 62

Company: Bit Digital, Inc
Filing Date: 2025-04-30
Form: S-3
Chunk 62
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-85%. The customer contracts are typically subject
to annual price escalators that are approximately in line with inflation.

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 NVIDIA Cloud Partner (“NCP”), through the NVIDIA Partner Network (“NPN”), an authorized partner
with SuperMicro Computer Inc.®, an authorized Communications Service Provider (“CSP”) with Dell (through Dell’s
exclusive distribution in Iceland, Advania), an official partnership with Hewlett Packard Enterprise and a commercial relationship with
Quanta Computer, Inc. (“QCT”).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.
Based on our Management’s experience with historical and forward-looking capital expenditure financing, 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
of the GPUs. 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.

<div align='center'>S-2</div>

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 maximize performance
by automating and optimizing 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