Company: BTBT
Filing Date: 2025-06-11
Form Type: S-3/A
Source: 0001213900-25-053489
Chunk: 69

Company: Bit Digital, Inc
Filing Date: 2025-06-11
Form: S-3/A
Chunk 69
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 expect contract duration with our cloud services customers,
comprised of established enterprises and well-funded AI startups, to be approximately 36 months, with an initial cost per card hour of
$2.15 to $3.40, with a 15% annual per hour decline rated, translating to estimated annual revenue of between $18,000 and $30,000, assuming
an 85% utilization rate. We anticipate a profit margin of approximately 78% driven by high utilization rates, stable energy costs, and
economies of scale in procurement and infrastructure management.

<div align='center'>S-2</div>

We are actively engaged in research and development
efforts to enhance our cloud services capabilities for our customers. For example, we are developing integrated software to automate
layering of stacks and self-service portals on top of the cross-data center fabric, allowing our customers to access GPU or CPU nodes
on demand—no matter where they physically reside. This provides significant flexibility as scaling is required to accelerate development
of AI applications. In addition, we are working on advanced interconnect technologies like InfiniBand (IB) or RDMA over Converged Ethernet
(“RoCE”). When combined with cross-data center links, these ensure that training jobs can be distributed without bottlenecks
or high latency. By emphasizing scale, performance, and reliability, we believe that we will be positioned to maximize customer retention
while pricing our services at a premium to those offered by our competitors.

We leverage a global network of data center
resources by partnering with eight third-party data center providers to achieve high autonomy in locations across Europe, Canada, and
the U.S. Our initial HPC data center partnership through which we lease capacity is at BlöndUos Campus, Iceland, offering a world-class
operations team with certified technicians and reliable engineers. The facility has 50kW rack density and 6MW total capacity. Its energy
source is 100% renewable energy, mainly from Blanda Hydro PowerStation, the winner of IHA Blue Planet Awards in 2017. On October 23,
2023, Bit Digital announced that we had commenced AI operations by signing a binding term sheet with a customer (the “Initial Customer”)
to support their GPU workloads. Under the agreement, as amended, we will supply this customer with a total of 2,048 GPUs for the respective
three-year periods, amounting to total revenue of approximately $150 million assuming the customer utilizes the