Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 132

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 132
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 a third party, selling 96 AI
servers (equivalent to 768 GPUs) and leasing them back for three years. The total contract value with the Initial Customer for the aggregated
2,048 GPUs was estimated to be worth more than $50 million of annualized revenue. On January 22, 2024, approximately 192 servers (equivalent
to 1,536 GPUs) were deployed at a specialized data center and began generating revenue, and subsequently on February 2, 2024, approximately
an additional 64 servers (equivalent to 512 GPUs) also started to generate revenue.

In the second quarter of 2024, we finalized an
agreement to supply our Initial Customer with an additional 2,048 GPUs over a three-year period. To finance this operation, we entered
into a sale-leaseback agreement with a third party, agreeing to sell 128 AI servers (equivalent to 1,024 GPUs) and leasing them back for
three years. In late July, at the customer’s request, we agreed with the customer to temporarily delay the purchase order so the
customer could evaluate an upgrade to newer generation Nvidia GPUs. Consequently, the Company and manufacturer postponed the purchase
order. In early August, the customer made a non-refundable prepayment of $30.0 million for the services to be rendered under this agreement.

In January 2025, the Company entered into a new
agreement to supply its Initial Customer with an additional 464 GPUs for a period of eighteen months. This new agreement replaces the
prior agreement executed in the second quarter of 2024 whereby the Company was to provide the customer with an incremental 2,048 H100
GPUs. The contract represents approximately $15 million of annualized revenue and features a two-month prepayment from the customer. The
customer has elected to defer the commencement date until August 20th, 2025, which is the latest allowable date under the agreement.

On October 9, 2024, we executed a Master Service Agreement (the “MSA”)
with Boosteroid Inc. (“Boosteroid”), a global cloud gaming provider. Following execution of a binding term sheet with Boosteroid
on August 19, 2024, we finalized initial orders of 489 GPUs, projected to generate approximately $7.9 million in contracted value in the
aggregate through November 2029. The GPUs have been delivered to respective data centers across the U.S. and Europe and began