Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 165

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 165
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inance
the buildout of Tier-3 AI data center at 7300 Trans Canada Highway, Pointe-Claire, Quebec (“MTL-2”) as well as USD $5.8 million
of revolving term financing (the “Revolver”). The Facility is non-recourse to the Company. The Company entered into a three-year
USD $18.5 million non-revolving lease facility to finance equipment costs and building improvements to build out the site. The lease facility
provides for straight-line amortization of six years and capital moratorium of six months after disbursement is complete. RBC may cancel
any unutilized portion of the facility after March 31, 2026. The interest rate is fixed based on the rental rate determined by RBC for
the three-year term of the lease.

As part of the Facility, the Company entered into
a three-year USD $19.6 million non-revolving real estate term loan facility. The purpose of this facility is to refinance the Company’s
purchase of MTL-2. The interest rate of the real estate term loan facility will be determined at the time of borrowing, or a floating
interest rate ranging from RBP plus 0.75% to CORRA (“Canadian Overnight Repo Rate Average”) plus 250 bps. Payment of principal
and interest is due 30 days after drawdown and is repayable in full on the last day of the three-year term.

The Revolver is being provided by RBC by way of
Letters of Credit and Letters of Guaranty with fees to be determined on a transaction by transaction basis. This facility will be available
for the 36 month term subject to the issuance of the EDC (Export and Development Canada) Performance Security Guaranty in the amount of
USD $5.8 million and other related supporting documents. The Company agreed to certain financial covenants included maintaining on a combined
basis between MTL-1 and MTL-2: fixed charge coverage of not less than 1.20:1 and a ratio of Net Funded Debt to EBITDA of not greater than
4.25:1 and decreasing to 3.50:1 from December 31, 2027.

Cloud Services 

We provide specialized cloud services to support
generative AI workstreams, especially training and inference, emphasizing cost-effective utility and tailor-made solutions for each client.
We are an authorized NVIDIA Preferred Partner through the NVIDIA Partner Network (“NPN”),