Company: BTBT
Filing Date: 2025-04-30
Form Type: S-3
Source: 0001213900-25-037166
Chunk: 61

Company: Bit Digital, Inc
Filing Date: 2025-04-30
Form: S-3
Chunk 61
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 capacity expansion with increased power. We anticipate dedicating a
portion of MTL 2’s capacity to house GPUs for our cloud services business. Enovum enjoys significant embedded demand from existing
customers, and is in receipt of requests in excess of our short term MW availability.

We use a well-defined set of criteria to select
our data center sites. We actively target sub-20MW sites with proximity to metro areas and partial infrastructure in place, where we are
retrofitting rather than developing greenfield projects. A retrofit entails sourcing and acquiring an existing industrial building with
underutilized, in-place power connectivity. Our average build time for retrofits is six months, which we believe is approximately one-third
to one-half of the industry average development timeline for greenfield projects. We are also developing a proprietary software capability
that will link clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius
of approximately 700 kilometers. By productizing cross-data center operation, we intend to create a single supercluster, enabling us to
sidestep potential fragmentation problems and dynamically “borrow” compute or storage resources from any site. We also prioritize
sites offering opportunities to increase site power over time, enabling our HPC data centers to grow with customer demand. In addition,
we selectively target certain larger opportunities with 50MW of power or more, subject to customer demand, to drive AI-driven compute
super-clusters. Finally, we target sites powered by sustainable, green energy sources.

We believe that our HPC data center development
and operating model provides highly attractive economics for our investors. We estimate that our capex requirement to develop a cutting
edge, Tier-3 data center is between $7 - $9 million per MW. Consistent with common industry practice, approximately 70-75% of this capex
budget will be financed with facility-level debt, with the remaining capex requirement equity financed. Based on ongoing discussions with
prospective customers, we anticipate that the average contract term for our AI and ML-focused enterprise and GPU compute customers will
be 4-12 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