Bit Digital awarded GPU contract expansion to $275M

Bit Digital 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 $275M, or $92M 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, expected to be delivered to the company during July. 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. 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.