Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 210

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 210
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 Hydro PowerStation, the winner of an IHA Blue Planet Award in 2017.

In
April 2025, we received our first shipment of NVIDIA GB200 Grace Blackwell Superchip powered NVIDIA GB200 NVL72 system chips, from Quanta
Cloud Technology, a leading provider of data center solutions. We believe that support with proof of concept (POC) access from Quanta
will enable us to meet and exceed expectations around delivery and timeline, performance and reliability.  

The
following summaries reflect selected GPU cloud service agreements that we consider to be material or representative. We have entered
into additional agreements that are not individually material and are not included below.

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.

In
the second quarter of 2024, we finalized an agreement to supply our Initial Customer with an additional 2,048 GPUs over a three-year
period. To finance this operation, we entered into a sale-leaseback 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-ref