Bit Digital, Inc. Announces Binding Term Sheet with New HPC Customer Representing a More Than $700 Million Revenue Opportunity Over Five-Year Term
Bit Digital (Nasdaq: BTBT) has signed a binding term sheet with Boosteroid Inc. for its high-performance computing (HPC) business. The initial agreement includes a purchase of GPU servers with a five-year service duration, expected to generate $13 million in revenue over the term. Boosteroid has options to expand up to 50,000 GPU servers, representing a potential $700 million revenue opportunity for Bit Digital. The initial deployment, featuring AMD EPYC 4th Gen CPUs and RX7900XT GPUs, is planned across 10+ data centers in the U.S. and Europe, starting within 2-3 months. This partnership aims to enhance Boosteroid's position in the global cloud gaming market while expanding Bit Digital's HPC business into new end-markets.
Bit Digital (Nasdaq: BTBT) ha firmato un contratto vincolante con Boosteroid Inc. per la sua attività di calcolo ad alte prestazioni (HPC). L'accordo iniziale prevede l'acquisto di server GPU con una durata del servizio di cinque anni, che si prevede genererà 13 milioni di dollari di entrate nel periodo. Boosteroid ha opzioni per espandere fino a 50.000 server GPU, rappresentando un potenziale opportunità di entrate di 700 milioni di dollari per Bit Digital. Il dispiegamento iniziale, con CPU AMD EPYC di quarta generazione e GPU RX7900XT, è previsto in oltre 10 centri dati negli Stati Uniti e in Europa, a partire da 2-3 mesi. Questa partnership mira a migliorare la posizione di Boosteroid nel mercato globale del cloud gaming, mentre espande l'attività HPC di Bit Digital in nuovi mercati finali.
Bit Digital (Nasdaq: BTBT) ha firmado un contrato vinculante con Boosteroid Inc. para su negocio de computación de alto rendimiento (HPC). El acuerdo inicial incluye la compra de servidores GPU con una duración del servicio de cinco años, que se espera genere 13 millones de dólares en ingresos durante el plazo. Boosteroid tiene opciones para expandir hasta 50.000 servidores GPU, lo que representa una posible oportunidad de ingresos de 700 millones de dólares para Bit Digital. La implementación inicial, que contará con CPU AMD EPYC de cuarta generación y GPU RX7900XT, está planeada en más de 10 centros de datos en EE. UU. y Europa, comenzando dentro de 2-3 meses. Esta asociación tiene como objetivo mejorar la posición de Boosteroid en el mercado global de juegos en la nube mientras expande el negocio HPC de Bit Digital a nuevos mercados finales.
Bit Digital (Nasdaq: BTBT)는 Boosteroid Inc.와 고성능 컴퓨팅(HPC) 사업을 위한 구속력 있는 조건서에 서명했습니다. 초기 계약은 5년 서비스 기간 동안 1300만 달러의 수익을 창출할 것으로 예상되는 GPU 서버 구매를 포함합니다. Boosteroid는 최대 50,000개의 GPU 서버로 확장할 수 있는 옵션을 가지고 있어 Bit Digital에게 7억 달러의 수익 기회를 제시합니다. 초기 배치는 AMD EPYC 4세대 CPU와 RX7900XT GPU가 탑재되며, 미국과 유럽의 10개 이상의 데이터 센터에서 2-3개월 이내에 시작될 예정입니다. 이 파트너십은 Boosteroid가 글로벌 클라우드 게임 시장에서의 입지를 강화하고 Bit Digital의 HPC 비즈니스를 새로운 최종 시장으로 확장하는 것을 목표로 합니다.
Bit Digital (Nasdaq: BTBT) a signé une feuille de conditions contraignante avec Boosteroid Inc. pour son activité de calcul haute performance (HPC). L'accord initial comprend l'achat de serveurs GPU avec une durée de service de cinq ans, qui devrait générer 13 millions de dollars de revenus pendant la période. Boosteroid a des options pour s'étendre jusqu'à 50 000 serveurs GPU, ce qui représente une opportunité de revenus potentielle de 700 millions de dollars pour Bit Digital. Le déploiement initial, comprenant des CPU AMD EPYC de 4e génération et des GPU RX7900XT, est prévu dans plus de 10 centres de données aux États-Unis et en Europe, à commencer dans 2 à 3 mois. Ce partenariat vise à améliorer la position de Boosteroid sur le marché mondial des jeux en nuage tout en développant l'activité HPC de Bit Digital dans de nouveaux marchés finaux.
Bit Digital (Nasdaq: BTBT) hat ein verbindliches Term Sheet mit Boosteroid Inc. für sein Geschäft mit Hochleistungsrechnern (HPC) unterzeichnet. Die anfängliche Vereinbarung umfasst den Kauf von GPU-Servern mit einer Service-Dauer von fünf Jahren, die voraussichtlich 13 Millionen US-Dollar an Einnahmen über den Zeitraum generieren werden. Boosteroid hat Optionen zur Expansion auf bis zu 50.000 GPU-Server, was eine potenzielle Einnahmechance von 700 Millionen US-Dollar für Bit Digital darstellt. Der anfängliche Einsatz, der AMD EPYC 4. Generation CPUS und RX7900XT GPUs umfasst, ist in über 10 Rechenzentren in den USA und Europa geplant und soll innerhalb von 2-3 Monaten beginnen. Diese Partnerschaft zielt darauf ab, die Position von Boosteroid im globalen Cloud-Gaming-Markt zu stärken und gleichzeitig das HPC-Geschäft von Bit Digital in neue Endmärkte zu erweitern.
- Initial agreement expected to generate $13 million in revenue over five years
- Potential for up to $700 million in revenue if Boosteroid expands to 50,000 GPU servers
- Expansion into new end-market for HPC offerings
- Deployment planned across 10+ data centers in the U.S. and Europe
- Full revenue potential dependent on Boosteroid's deployment plans and market conditions
- Agreement conditional upon further diligence, reviews, and approvals
The binding term sheet between Bit Digital and Boosteroid represents a significant potential revenue stream for Bit Digital. The initial order of
However, investors should note that this is still a term sheet, not a finalized agreement. The execution depends on due diligence, approvals and market conditions. The phased deployment over five years also means the full revenue impact won't be immediate. Still, this deal positions Bit Digital as a serious player in the HPC market, potentially diversifying its revenue streams beyond digital assets.
This partnership showcases a significant technological collaboration in the cloud gaming sector. The use of AMD's EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUS, indicates a high-performance setup tailored for cloud gaming demands. The planned deployment across 10+ data centers in the U.S. and Europe suggests a robust, low-latency infrastructure essential for cloud gaming success.
What's particularly interesting is the scale of the potential deployment - up to 50,000 GPU servers. This level of infrastructure could position Boosteroid as a major player in the cloud gaming market, potentially rivaling established services. For Bit Digital, this deal demonstrates their capability to provide and manage large-scale, high-performance computing solutions, opening doors to similar partnerships in the future.
This deal signals a growing trend in the cloud gaming market. With major tech giants already invested in this space, Boosteroid's ambitious expansion plans indicate there's still room for growth and competition. The cloud gaming market is projected to grow significantly, driven by improvements in internet infrastructure and changing consumer preferences.
For Bit Digital, this partnership represents a strategic pivot. Known primarily for its involvement in digital assets, this move into HPC for cloud gaming diversifies its business model. It's a smart strategy, especially given the volatility in the cryptocurrency market. If successful, this could reposition Bit Digital as a key infrastructure provider in the burgeoning cloud gaming industry, potentially leading to a revaluation of the company by investors.
Key Highlights
- Initial Agreement: Upon signing a master service agreement ("MSA"), Boosteroid will place an initial purchase for a starting quantity of GPU servers with a five-year service duration. Bit Digital's entry into a MSA is conditioned upon further diligence of Boosteroid, customary legal and business reviews, internal approvals, and execution of an acceptable MSA.
- Revenue Impact: This initial order is expected to generate approximately
$13 million $2.6 million - Scalability: Bit Digital will provide Boosteroid with options to draw down additional servers in multiples of 100, up to a total of 50,000 GPU servers within five years after signing the MSA, depending on their deployment plans. The entire 50,000 GPU deployment represents an aggregate revenue opportunity to Bit Digital in excess of
$700 million - Technology and Deployment: The initial purchase includes GPU-servers based on AMD EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUSTeK Computer Inc. ("ASUS") and AMD for Boosteroid. Deployment is planned across a network of more than 10 data centers in the
U.S. andEurope . The initial deployment is scheduled to begin over the next two to three months.
Sam Tabar, Bit Digital's CEO, commented: "We are excited to expand our HPC business and provide mission-critical computing solutions to Boosteroid, a customer in a new end-market for our HPC offerings. We are impressed with Boosteroid's business model and look forward to supporting their ambitious growth plans. We aim to deliver exceptional service quality and execution, laying the foundation for a long-term and growing partnership between our companies."
Ivan Shvaichenko, Founder and President of Boosteroid, commented: "This collaboration between Boosteroid and Bit Digital enhances our existing partnerships with AMD and ASUS, creating a powerful synergy that will drive us toward our goal of becoming the leader in the global cloud gaming market. By leveraging the advanced computing power provided by Bit Digital and the cutting-edge technology from AMD and ASUS, we are poised to deliver an unparalleled gaming experience to millions of users worldwide. This partnership not only strengthens our GPU-based infrastructure, already one of the widest in the world, but also sets the foundation for long-term innovation and growth within the cloud gaming industry."
About Boosteroid
Boosteroid is the world's third-largest cloud gaming provider, following Microsoft and Nvidia. With a GPU-based infrastructure network spanning 22 data centers and 10 more expected to launch by the end of 2024, Boosteroid serves over 5.7 million users across
About Bit Digital
Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in
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FAQ
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