Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 76

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 76
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 data center (“MTL-2”) expansion project near Montreal, Canada which we
refer to as MTL-2. MTL-2 is a 160,000 square foot site that was previously used as an encapsulation manufacturing facility, is located
in Pointe-Claire, Quebec. We initially funded the purchase of CAD $33.5 million (approximately USD $23.3) million with cash on hand. We
expect to invest approximately USD $23.6 million to develop the site to Tier-3 standards with an initial load of 5 MW (gross). MTL-2 is
expected to be completed and operational in the fourth quarter of 2025, with a one-month delay before it begins to generate revenue.

On April 11, 2025, we entered into a lease for
a new data center site in Saint-Jerome, Quebec, a suburb of Montreal, MTL-3. The MTL-3 facility spans approximately 202,000 square feet
on 7.7 acres and is being developed to as a 7 MW (gross) Tier-3 data center. It will support current contracted capacity, with Cerebras
(5 MW IT Load), with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure,
which includes a fixed-price purchase option of CAD $24.2 million (approximately USD $17.3 million) exercisable by December 2025. The
lease term is 20 years, with two 5-year extensions at the Company’s option. Subject to our receipt of all required permits, the
facility is being retrofitted to Tier-3 standards, with development costs expected 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