Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 258

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 258
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 agreement with a third party, agreeing to sell 128 AI servers (equivalent
to 1,024 GPUs) and leasing them back for three years. In late July, at the customer’s request, we agreed with the customer to temporarily
delay the purchase order so the customer could evaluate an upgrade to newer generation Nvidia GPUs. Consequently, the Company and manufacturer
postponed the purchase order. In early August, the customer made a non-refundable prepayment of $30.0 million for the services to be
rendered under this agreement.

In
January 2025, the Company entered into a new agreement to supply its Initial Customer with an additional 464 GPUs for a period of eighteen
months. This new agreement replaces the prior agreement whereby the Company was to provide the customer with an incremental 2,048 H100
GPUs. The contract represents approximately $15 million of annualized revenue and features a two-month prepayment from the customer.
The customer has elected to defer the commencement date until August 20, 2025, which is the latest allowable date under the agreement.
Deployment commenced on August 20, 2025, using the Company’s inventory of B200 GPUs.

On
October 9, 2024, we executed a Master Service Agreement (the “MSA”) with Boosteroid Inc. (“Boosteroid”), a global
cloud gaming provider. Following execution of a binding term sheet with Boosteroid on August 19, 2024, we finalized initial orders of
489 GPUs, projected to generate approximately $7.9 million in contracted value in the aggregate through November 2029. The GPUs have
been delivered to respective data centers across the U.S. and Europe and began earning fees in November 2024. The MSA provides Boosteroid
with the option to expand in increments of 100 servers, up to 50,000 servers, representing a potential contract value of approximately
$700 million over the five-year term assuming Boosteroid utilizes the GPUs and services at full capacity for the duration of the contract.
Expansion depends upon the internal development roadmap of Boosteroid, Boosteroid has full discretion to decide when and the quantity
to pursue separate source orders (for GPU servers) under the MSA. In the third quarter of 2025, the Company finalized additional purchase
orders for 302, 120, and 279 GPUs, totaling approximately $10.4 million in contracted value over a five-year term.

On
December 30, 2024