Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 138

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 138
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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 4,096 GPUs
for the respective three-year periods, amounting to total revenue of approximately $275 million, or $92 million on an annualized basis.

On December 12, 2023, the Company 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, the Company 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, the Company finalized an agreement to supply its first customer with an additional 2,048 GPUs over a three-year period.