Bit Digital, Inc. Launches New AI Business: Secures Customer Contract Worth up to $257 Million, Procures NVIDIA H100 GPUs
- Bit Digital launches Bit Digital AI, a new business line to support AI workstreams
- Bit Digital signs term sheet with customer for GPU rental services
- Bit Digital to purchase 1,056 NVIDIA HGX H100 GPUs and 132 FusionOne HPC from xFusion for $35 million
- Expected annual revenue from the contract is between $23 million and $27 million
- None.
Bit Digital has agreed to purchase 132 FusionOne HPC from xFusion Digital Technologies Co., Ltd. ("xFusion"), a leading global provider of digital infrastructure and services, for approximately
Bit Digital has entered into a binding term sheet to provide cloud-based GPU resources to a customer with an initial contract duration spanning one to three years. The customer is focused on developing AI applications, including their own proprietary large-language model (LLM), and is well-capitalized following a 2023 funding round.
Pricing and total value of the contract will be determined by the total number of GPUs and contract term. For the minimum 1,024 GPUs, Bit Digital expects the contract to generate between approximately
Sam Tabar, Bit Digital's CEO, commented: "We are pleased to take these steps to materially diversify our business and enter a market with robust demand and growth expectations. This new venture is an excellent expansion of our platform. This business line aims to provide a non-correlated income stream that will help the Company weather potential downturns in its core bitcoin mining and ETH staking businesses. We believe that the long-term success of our bitcoin mining operation is predicated on our ability to install alternative, durable revenue lines that enable us to pursue a countercyclical growth strategy and be less beholden to short-term gyrations in hash price.
From the onset of our careful evaluation of this business, our strategy was only to pursue this avenue if we had a well-capitalized, anchor customer in place. We were able to secure a customer with a significant liquidity runway and an impressive business model. We have long operated with an infrastructure-light business model that emphasizes efficient asset procurement and sourcing the most cost-effective hosting opportunities. We were able to apply these skills to secure the necessary elements to launch Bit Digital AI, and this experience leads us to believe this can be a highly scalable business that can help Bit Digital become a true through-cycle enterprise."
About Bit Digital
Bit Digital, Inc. is a sustainable digital infrastructure platform for digital assets and cloud computing services headquartered in
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FAQ
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