Bit Digital, Inc. Announces Finalized AI Customer Contract Terms and Datacenter Location

Rhea-AI Summary

Bit Digital, Inc. (Nasdaq: BTBT) has finalized a service agreement with its first customer for its new business line, Bit Digital AI. The agreement entails supplying computational power from 1,504 GPUs for a period of three years, representing over $35 million in annualized revenue. The Company has placed a purchase order for servers from Super Micro Computer, Inc., equipped with Nvidia HGX H100 GPUs, to fulfill the contract. Bit Digital will deploy the GPUs in a seismically stable data center in northern Iceland, securing 2.5 MW of capacity for 3 years.

NEW YORK, Nov. 20, 2023 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York City, is pleased to announce that it has finalized its service agreement with its first customer of its new business line, Bit Digital AI.

Under the terms of the agreement, Bit Digital will supply the customer with computational power from 1,504 GPUs for a period of three years. The contract will commence January 2024 and represents more than $35 million of annualized revenue to Bit Digital. To fulfill the contract, the Company has placed a purchase order for servers manufactured by with Super Micro Computer, Inc., an authorized Nvidia OEM, that are equipped with 1,504 Nvidia HGX H100 GPUs along with related equipment, which are expected to be delivered to the Company by January 2024.

The Company will deploy its initial fleet of 1,504 GPUs at a data center located in northern Iceland in an area unaffected, to date, by any earthquake or tremors. Bit Digital has finalized an agreement to secure 2.5 MW of data center capacity for a contract term of 3 years.

About Bit Digital

Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. The Company has also established a business line, Bit Digital AI, that offers infrastructure services for artificial intelligence applications. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 3.D of our Annual Report on Form 20-F for the fiscal year ended December 31, 2022. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital's production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors. See "Safe Harbor Statement" below.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

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SOURCE Bit Digital, Inc.

FAQ

What is the service agreement Bit Digital has finalized?

Bit Digital has finalized a service agreement with its first customer for its new business line, Bit Digital AI, involving the supply of computational power from 1,504 GPUs for a period of three years.

How much revenue does the contract represent for Bit Digital?

The contract represents more than $35 million of annualized revenue for Bit Digital.

Where will Bit Digital deploy its initial fleet of 1,504 GPUs?

Bit Digital will deploy its initial fleet of 1,504 GPUs at a data center located in northern Iceland, in an area unaffected by earthquakes or tremors.

What type of servers has Bit Digital ordered to fulfill the contract?

Bit Digital has placed a purchase order for servers manufactured by Super Micro Computer, Inc., equipped with 1,504 Nvidia HGX H100 GPUs, along with related equipment.

How much data center capacity has Bit Digital secured for the contract term?

Bit Digital has secured 2.5 MW of data center capacity for a contract term of 3 years.