Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 140

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 140
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.00% Convertible Notes due 2030. Subsequently,
the greenshoe option was exercised under which additional $15 million was sold to the Underwriters, making a total of $150 million aggregate
principal amount of the Convertible Notes. The Convertible Notes closed on October 1, 2025 and will mature on October 1, 2030, unless
earlier converted, redeemed or repurchased in accordance with their terms as stipulated in the Agreement.

On
October 31, 2025, the Company filed an automatically effective shelf registration statement on Form S-3 (File No. 333-291205) with the
SEC to register an indeterminate amount of its ordinary shares, which included a sales agreement prospectus supplement covering the offering,
issuance and sale by the Company of up to a maximum aggregate offering price of up to $2.5 billion of the Company’s ordinary shares
that may be issued and sold from time to time pursuant to the Sales Agreement.

Revenue
from Operations

Funding
our operations on a going-forward basis will rely significantly on the revenue earned from our high performance computing business, as
well as our ability to earn ETH rewards from ETH staking business and the spot or market price of ETH.

On
October 23, 2023, Bit Digital announced that it had commenced AI operations by signing a binding term sheet with a customer (the “Initial
Customer”) to support the customer’s GPU workloads. On December 12, 2023, we finalized a Master Services and Lease Agreement
(“MSA”), as amended, with our Initial Customer for the provision of cloud services from a total of 2,048 GPUs over a three-year
period. To finance this operation, we entered into a sale-leaseback agreement with a third party, selling 96 AI servers (equivalent to
768 GPUs) and leasing them back for three years. The total contract value with the Initial Customer for the aggregated 2,048 GPUs was
estimated to be worth more than $50 million of annualized revenue. On January 22, 2024, approximately 192 servers (equivalent to 1,536
GPUs) were deployed at a specialized data center and began generating revenue, and subsequently on February 2, 2024, approximately an
additional 64 servers (equivalent to 512 GPUs) also started to generate revenue. 

71

In
the second quarter of 2024, we finalized an