Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 77

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 77
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 Agreement providing
for, at least 99 MW (gross) within two years of the Closing Date or (ii) $5 million, if Duke Energy actually provides, or provides an
Electric Services Agreement providing for, at least 99 MW (gross) more than two years but less than three years after the Closing Date.
Additionally, the purchase price will increase by an additional $200,000 per MW over 99 MW (gross) up to a maximum of $5 million if at
least 99 MW (gross) are actually delivered, or Duke Energy provides an Electric Services Agreement for the provision of at least 99 MW
(gross), within four years of the Closing Date. Separately, the Company entered into a Capacity Agreement with Duke Energy pursuant to
which Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025,
40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of May 16, 2025. Management believes based upon its review of the site
and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply
over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

On June 18, 2025, the Company entered into a definitive
credit agreement (the “Facility”) with the Royal Bank of Canada (“RBC”). The Facility provides for an aggregate
of up to approximately CAD $60 million (approximately USD $43.8 million) of financing. The proceeds are to be used primarily to refinance
the buildout of Tier-3 AI data center at 7300 Trans Canada Highway, Pointe-Claire, Quebec (“MTL-2”) as well as USD $5.8 million
of revolving term financing (the “Revolver”). The Facility is non-recourse to the Company. The Company entered into a three-year
USD $18.5 million non-revolving lease facility to finance equipment costs and building improvements to build out the site. The lease facility
provides for straight-line amortization of six years and capital moratorium of six months after disbursement is complete. RBC may cancel
any unutilized portion of the facility after March 31, 2026. The interest rate is fixed based on the rental rate determined by RBC for
the three