Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 129

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 129
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Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations.

The following discussion should be read in conjunction
with our interim Condensed Consolidated Financial Statements and the related notes and other financial information appearing elsewhere
in this report as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our
Form 10-K for the year ended December 31, 2024 (“Form 10-K”) and this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2025.

Overview

Bit Digital, Inc. or the “Company”,
is a global platform for high performance computing (“HPC”) infrastructure and digital asset business with headquarters in
New York City.

HPC Business

Data centers

We design, develop, and operate data centers, through which we offer
our hosting and colocation services. Our data centers meet the requirements of the Tier-3 standard, including N+1 redundancy architecture,
concurrent maintainability, uninterruptible power supply, advanced and highly reliable cooling systems, strict monitoring and management
systems, SOC2 Type 2, differentiated software supporting AI workloads, high density and robust bandwidth, and infrastructure to support
AI workloads. We acquired Enovum Data Centers Corp (“Enovum”) on October 11, 2024. The transaction included the lease to MTL-1,
a fully operational and fully leased to customers 4 MW Tier-3 datacenter headquartered in Montreal, Canada. MTL-1 is currently hosting
over 5,000 GPUs, including NVIDIA H200s and H100s, on behalf of 14 customers across a variety of end markets.

On December 27, 2024, we acquired the real estate
and building for a build-to-suit 5 MW (gross) Tier-3 data center (“MTL-2”) expansion project near Montreal, Canada. MTL-2,
a 160,000 square foot site that was previously used as an encapsulation manufacturing facility, is located in Pointe-Claire, QC. We initially
funded the purchase of CAD $33.5 million (approximately USD $23.3) million with cash on hand and are in the process of securing mortgage
financing for both the site acquisition and subsequent infrastructure capex. We expect to invest approximately USD $19.3 million to develop
the site to Tier-3 standards with an initial gross load of 5 MW. The site is expected to