Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 164

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 164
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 to total approximately USD $41 million, and is expected
to be completed and operational in the fourth quarter of 2025, with a one-month delay before we expect to begin to generate revenue.

43

On May 20, 2025 (the “Closing Date”),
we completed the purchase of a former industrial/manufacturing building from 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 $45 million.
The purchase price will increase by (i) $8 million, if Duke Energy actually provides, or provides an Electric Services 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 ref