Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 130

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 130
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 be completed and operational by the end of the
third quarter of 2025.

We have entered into a five-year colocation agreement
with Cerebras Systems (“Cerebras”), a leading AI hardware innovator. Cerebras is launching six new data center sites in North
America and chose WhiteFiber to be its partner for its first Canadian data center. Under the agreement, the Company will provide the client
5 MW (IT load) of built-to suit data center infrastructure for a period of five years. The contract is expected to be fulfilled at MTL-3,
or another data center within our proprietary development pipeline.

On April 10, 2025, we entered into a lease for
a new data center site in Saint-Jerome, Quebec, a suburb of Montreal, MTL-3, which is subject to the lessor consummating the acquisition
of the property and our receipt of the necessary permits. The facility spans approximately 202,000 square feet on 7.7 acres and is being
developed to support current contracted capacity, with future expansion potential subject to utility approvals. The transaction was executed
under a lease-to-own structure, which includes a fixed-price purchase option of CAD $24,240,00 (approximately USD $17,300,000) exercisable
within 12 months. The lease term is 20 years, with two 5-year extension options, subject to our completion of the acquisition of the property
and the receipt of all required permits. The facility is being retrofitted to Tier-3 standards, with development costs expected to total
approximately USD $40,000,000, and a targeted go-live date of late third quarter of 2025.

On April 10, 2025, we entered into a real estate purchase
and sale agreement (the “Purchase Agreement”) with Unifi Manufacturing, Inc. (“UMI”). Pursuant to the Purchase
Agreement we agreed to purchase from UMI, an industrial/manufacturing building together with the underlying land (“NC-1”)
located in Madison, North Carolina, as well as certain machinery and equipment located thereon, for a cash purchase price of $53.2 million
(the “Purchase Price”). An earnest money deposit of $2.25 million was deposited in escrow pursuant to the terms of the Purchase
Agreement, of which $1.25 million is non-refundable to us. The closing of the transaction contemplated by the Purchase Agreement is subject