Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 97

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 97
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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 earning
fees in November 2024. The MSA provides Boosteroid with the option to expand in increments of 100 servers, up to 50,000 servers, representing
a potential contract value of approximately $700 million over the five-year term assuming Boosteroid utilizes the GPUs and services at
full capacity for the duration of the contract. Expansion depends upon the internal development roadmap of Boosteroid, Boosteroid has
full discretion to decide when and the quantity to pursue separate source orders (for GPU servers) under the MSA. Additional orders for
701 GPUs were executed in March 2025, representing approximately $10.3 million in contracted value over a five year term.

On December 30, 2024, we entered into a Master Services
Agreement (“MSA”) with a minimum purchase commitment of 32 GPUs, along with an associated purchase order, from a new customer,
an AI Compute Fund managed by DNA Holdings Venture Inc (“DNA Fund”). The purchase order provides for services utilizing a
total of 576 H200 GPUs over a twenty-five month period, terminable by either party upon at least 90 days’ written notice prior to
any renewal date. It represents an aggregate revenue opportunity of approximately $20.2 million. Concurrently, we placed a purchase order
for 130 H200 servers for approximately $30 million. The deployment commenced in February 2025. In April 2025, the Company signed two additional
cloud services agreements with DNA Fund. The first agreement, commencing in early May, includes 104 NVIDIA H200 GPUs under a 23-month
term. The second, commencing mid-May, includes 512 H200 GPUs under a 24-month term. With these additions, DNA Fund’s total contracted
deployment increased to 1,192 GPUs. Combined, the agreements represent approximately $20.9 million of annualized revenue.

We expect to also generate ongoing revenues from
the production of digital assets, primarily bitcoin. Our ability to liquidate digital assets at future values will be evaluated from time
to time to generate