NEW
YORK, June 25, 2024 /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, announced today that it has finalized an agreement to
supply an existing customer with an additional 2,048 GPUs over a
three-year term commencing upon deployment. With this agreement,
the Company 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.
To fulfill the contract, the Company has placed a purchase order
for 256 servers manufactured by Dell Technologies, an authorized
Nvidia OEM, that are equipped with 2,048 Nvidia HGX H100 GPUs along
with related equipment, which are expected to be delivered to the
Company during July 2024. The servers
will be deployed in Iceland at the
datacenter where the Company's existing AI servers are located and
are expected to begin generating revenue in August 2024.
The Company intends to finance the deal with a mixture of cash
and digital assets on the balance sheet. Bit Digital has elected to
enter into a sale-leaseback agreement with a third-party entity for
1,024 GPUs which will reduce the Company's capital outlay
commensurately. Additionally, the Company continues to evaluate
debt financing options that would allow the Company to
retroactively finance its hardware assets.
Sam Tabar, Bit Digital's CEO,
commented: "We are pleased to finalize terms with our customer to
expand their deployment to over 4,000 GPUs. This agreement
significantly contributes to our goal of reaching a $100 million annualized revenue run-rate by the
end of 2024, bringing us to over 90% of this target. Our primary
objective in the HPC business is to execute effectively for our
customers and help them achieve their AI ambitions. We continue to
see a robust growth trajectory for this segment and look forward to
scaling even further as the year progresses."
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 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.