Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 163

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 163
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 and WhiteFiber Iceland, ehf, to WhiteFiber, upon the effectiveness of WhiteFiber’s registration statement
on Form S-1 in connection with WhiteFiber’s initial public offering. For more information, see Note 21. Subsequent Events
in our Notes to Unaudited Condensed Consolidated Financial Statements included elsewhere herein.

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 (gross) Tier-3
datacenter headquartered in Montreal, Canada.

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 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