Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 167

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 167
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 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 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 20, 2025, which is the latest allowable date under the agreement.

In August 2024, we executed a binding term sheet
with Boosteroid Inc. (“Boosteroid”), a global cloud gaming provider pursuant to which, 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 were delivered
to respective data centers across the U.S. and Europe and began earning fees in November 2024. On October 9, 2024, we executed a Master
Services and Lease Agreement (the “MSA”) with Boosteroid, pursuant to which Boosteroid may, from time to time, lease certain
equipment, including GPUs, from the Company upon delivery of a purchase order. The MSA provides the general terms and conditions for such
equipment leases. Pursuant to the MSA, we are granted a right of first refusal with respect to the next 5,000 servers that Boosteroid
leases during the term of the MSA. The MSA provides Boosteroid with the option to expand in