Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 78

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 78
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-year term of the lease.

As part of the Facility, the Company entered into
a three-year USD $19.6 million non-revolving real estate term loan facility. The purpose of this facility is to refinance the Company’s
purchase of MTL-2. The interest rate of the real estate term loan facility will be determined at the time of borrowing, or a floating
interest rate ranging from RBP plus 0.75% to CORRA (“Canadian Overnight Repo Rate Average”) plus 250 bps. Payment of principal
and interest is due 30 days after drawdown and is repayable in full on the last day of the three-year term.

The Revolver is being provided by RBC by way of
Letters of Credit and Letters of Guaranty with fees to be determined on a transaction by transaction basis. This facility will be available
for the 36 month term subject to the issuance of the EDC (Export and Development Canada) Performance Security Guaranty in the amount of
USD $5.8 million and other related supporting documents. The Company agreed to certain financial covenants included maintaining on a combined
basis between MTL-1 and MTL-2: fixed charge coverage of not less than 1.20:1 and a ratio of Net Funded Debt to EBITDA of not greater than
4.25:1 and decreasing to 3.50:1 from December 31, 2027.

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 Preferred Partner 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 distributor
in Iceland, Advania), an official partnership with Hewlett Packard Enterprise and a commercial relationship with Quanta Computer Inc.
(“QCT”). Based on Management’s knowledge of the industry, we are proud to be among the first service providers to offer
H200, B200, and GB200 servers. We provide a high-standard service lease with an Uptime percentage > 99.5%.

44

We expect to leverage a global network of data
centers for hosting capacity for our GPU business, in many instances, by negotiating with third-party providers to seamlessly integrate
our cloud services at data centers across key regions in Europe, North America and Asia. Our