Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 137

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 137
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 years, yielding annual revenue per gross MW of approximately $1.7
to $2.5 million assuming a power usage effectiveness (“PUE”) of 1.20 to 1.40. The anticipated economics of the HPC data
centers are dependent on location and the inclusion of energy expense pass-through agreements. We anticipate that our HPC data
center profit margin will be approximately 75-85%. The customer contracts are typically subject to annual price escalators that are
approximately in line with inflation.

2

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 Network Control Processor (“NCP”) with NVIDIA, an authorized partner with SuperMicro
Computer Inc.®, an authorized Communications Service Provider (“CSP”) with Dell, and an official partnership with Hewlett
Packard Enterprise. 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 all-in capex required to purchase a GPU is approximately $30,000 for an NVIDIA H200 to
$50,000 for an NVIDIA Blackwell chip, inclusive of networking, setup, shipping, and other expenses. 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 translating to estimated
annual revenue of between $18,000 and $30,000, assuming a 100% utilization rate. We anticipate a profit margin of approximately 85% driven
by high utilization rates, stable energy costs, and economies of scale in procurement and infrastructure management.

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 automate 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 (IB)