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Bit Digital, Inc. Executes MSA with Boosteroid, Third-Largest Cloud Gaming Provider, For Initial Deployment

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Bit Digital (Nasdaq: BTBT) has executed a Master Service Agreement with Boosteroid, the third-largest cloud gaming provider. The initial deployment includes 300 GPUs expected to generate $4.6 million in revenue over five years ($0.9 million annually). The GPU servers, customized by ASUS and AMD, will be deployed across U.S. data centers by November 2024. The agreement includes an expansion option of up to 50,000 servers in 100-server increments, representing a potential $700 million revenue opportunity over the five-year term, subject to deployment plans and market conditions.

Bit Digital (Nasdaq: BTBT) ha stipulato un Contratto di Servizio Principale con Boosteroid, il terzo fornitore di cloud gaming più grande. Il dispiegamento iniziale include 300 GPU che si prevede genereranno 4,6 milioni di dollari di ricavi nel corso di cinque anni (0,9 milioni di dollari all'anno). I server GPU, personalizzati da ASUS e AMD, saranno distribuiti nei data center statunitensi entro novembre 2024. L'accordo include un'opzione di espansione fino a 50.000 server in incrementi da 100 server, rappresentando un potenziale opportunità di guadagno di 700 milioni di dollari nel periodo di cinque anni, soggetto ai piani di distribuzione e alle condizioni di mercato.

Bit Digital (Nasdaq: BTBT) ha ejecutado un Acuerdo de Servicios Maestros con Boosteroid, el tercer proveedor de juegos en la nube más grande. El despliegue inicial incluye 300 GPU que se espera generen 4.6 millones de dólares en ingresos durante cinco años (0.9 millones anuales). Los servidores GPU, personalizados por ASUS y AMD, se desplegarán en centros de datos en EE. UU. antes de noviembre de 2024. El acuerdo incluye una opción de expansión de hasta 50,000 servidores en incrementos de 100 servidores, representando una posible oportunidad de ingresos de 700 millones de dólares durante el período de cinco años, sujeto a los planes de despliegue y las condiciones del mercado.

Bit Digital (Nasdaq: BTBT)는 Boosteroid와 마스터 서비스 계약을 체결했습니다. Boosteroid는 세계에서 세 번째로 큰 클라우드 게임 제공업체입니다. 초기 배치는 300개의 GPU가 포함되며, 이는 5년 동안 약 460만 달러의 수익을 창출할 것으로 예상됩니다 (연간 90만 달러). ASUS와 AMD가 맞춤 제작한 GPU 서버는 2024년 11월까지 미국 데이터 센터에 배치될 예정입니다. 이 계약에는 100개 서버씩 50,000개 서버로 확장할 수 있는 옵션이 포함되어 있으며, 이는 5년 동안 7억 달러의 수익 기회를 나타내며, 배치 계획 및 시장 조건에 따라 달라질 수 있습니다.

Bit Digital (Nasdaq: BTBT) a signé un Accord de Service Principal avec Boosteroid, le troisième plus grand fournisseur de jeux en cloud. Le déploiement initial comprend 300 GPU attendus pour générer 4,6 millions de dollars de revenus sur cinq ans (0,9 million par an). Les serveurs GPU, personnalisés par ASUS et AMD, seront déployés dans des centres de données aux États-Unis d'ici novembre 2024. L'accord comprend une option d'expansion allant jusqu'à 50 000 serveurs par increments de 100 serveurs, représentant une opportunité de revenus potentielle de 700 millions de dollars sur la période de cinq ans, sous réserve des plans de déploiement et des conditions du marché.

Bit Digital (Nasdaq: BTBT) hat einen Master-Service-Vertrag mit Boosteroid, dem drittgrößten Anbieter von Cloud-Gaming, abgeschlossen. Der anfängliche Einsatz umfasst 300 GPUs, von denen erwartet wird, dass sie über fünf Jahre hinweg 4,6 Millionen Dollar an Einnahmen generieren (jährlich 0,9 Millionen Dollar). Die von ASUS und AMD angepassten GPU-Server werden bis November 2024 in US-Rechenzentren eingesetzt. Der Vertrag beinhaltet eine Expansionsoption von bis zu 50.000 Servern in 100-Server-Schritten, was eine potenzielle Einnahmemöglichkeit von 700 Millionen Dollar über den fünfjährigen Zeitraum darstellt, abhängig von den Bereitstellungsplänen und den Marktbedingungen.

Positive
  • Initial deployment to generate $4.6 million in revenue over 5 years
  • Potential expansion opportunity worth up to $700 million over 5 years
  • Partnership with third-largest cloud gaming provider enhances market position
Negative
  • Initial deployment represents only 0.66% of total potential revenue opportunity
  • Future revenue expansion contingent on market conditions and deployment plans

Insights

The MSA with Boosteroid marks a significant strategic expansion for Bit Digital into the HPC services market. The initial $4.6 million revenue commitment over five years provides a stable revenue stream, but the real value lies in the expansion potential. With options to scale up to 50,000 servers, representing a $700 million revenue opportunity, this deal could transform Bit Digital's business model.

The timing is particularly strategic given the growing demand for cloud gaming infrastructure. Boosteroid's position as the third-largest cloud gaming provider adds credibility to the partnership. The use of premium hardware from ASUS and AMD suggests high-performance capabilities that could attract additional enterprise clients. While the initial deployment is modest, the quick revenue generation timeline (by November 2024) and the structured expansion framework demonstrate solid execution planning.

The technical specifications of this deployment are noteworthy. The combination of AMD EPYC 4th Gen CPUs and RX7900XT GPUs represents a high-end configuration optimized for cloud gaming workloads. The customization by ASUS indicates a purpose-built solution that should deliver optimal performance for Boosteroid's specific requirements.

The modular expansion approach in 100-server increments is well-designed, allowing for controlled scaling based on demand. This infrastructure model positions Bit Digital to potentially capture a larger share of the cloud gaming market while maintaining service quality. The geographic distribution across U.S. data centers suggests a focus on minimizing latency, important for cloud gaming services.

NEW YORK, Nov. 4, 2024 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a global platform for high-performance computing ("HPC") infrastructure and digital asset production headquartered in New York, announced today that it has executed a Master Service Agreement ("MSA") with Boosteroid Inc. ("Boosteroid"), a global cloud gaming provider and new customer of Bit Digital's high-performance computing ("HPC") services. Bit Digital previously announced that it had signed a binding term sheet with Boosteroid on August 19, 2024.

Bit Digital has finalized a purchase order for the starting quantity of GPUs. The initial order of 300 GPUs is expected to generate approximately $4.6 million in revenue to Bit Digital over the five-year term, or approximately $0.9 million per year. The initial purchase will include GPU-servers based on AMD EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUSTeK Computer Inc. ("ASUS") and AMD for Boosteroid. Bit Digital expects the GPUs to be delivered to respective data centers across the U.S and begin earning revenue by the end of November 2024. The agreement provides Boosteroid with the option to expand in increments of 100 servers, up to 50,000 servers, representing a potential $700 million revenue opportunity for Bit Digital over the five-year term, contingent on deployment plans and market conditions.

Sam Tabar, Bit Digital's CEO, commented: "We are thrilled to solidify our partnership with Boosteroid and embark on what we see as a substantial growth opportunity for both companies. Our team is committed to delivering high-quality service in the initial phase, laying the groundwork for significant expansion in 2025."

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 Europe, North America, and South America. It partners with major brands like Google for cloud gaming on Chrome OS, and collaborates with Microsoft, Samsung, LG, Hisense, Philips, Sharp, etc. Boosteroid uses custom hardware solutions designed by ASUS, AMD, and other companies tailored specifically for their platform.

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing ("HPC") infrastructure and digital asset production headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. The Company has 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 most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2023. 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.

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 value of Bit Digital's initial GPU deployment with Boosteroid?

The initial deployment of 300 GPUs is expected to generate approximately $4.6 million in revenue over five years, or $0.9 million annually.

What is the maximum potential revenue for BTBT from the Boosteroid agreement?

The agreement has a potential revenue opportunity of up to $700 million over the five-year term if expanded to 50,000 servers.

When will BTBT begin earning revenue from the Boosteroid GPU deployment?

Bit Digital expects to begin earning revenue from the GPU deployment by the end of November 2024.

How many additional servers can Boosteroid order under the BTBT agreement?

Boosteroid can expand in increments of 100 servers, up to a maximum of 50,000 servers.

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