NEW
YORK, Jan. 10, 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
City, is pleased to announce that it has increased the scope
of its contract with its first customer of its Bit Digital AI
business line. Under the terms of the agreement, Bit Digital will
supply the customer with computational power from an additional 512
GPUs for a period of three years. The total contract value with the
customer for an aggregate of 2,048 GPUs is now worth more than
$50 million of annualized revenue to
Bit Digital.
To fulfill the contract, the Company has placed a purchase order
for 64 servers manufactured by Super Micro Computer, Inc., an
authorized Nvidia OEM, that are equipped with 512 Nvidia HGX H100
GPUs along with related equipment, which are expected to be
delivered to the Company during January
2024. The servers will be deployed in Iceland at the datacenter where the Company's
existing AI servers are located. As of the date of this press
release, 128 AI servers have been successfully installed at the
datacenter in Iceland and are
undergoing testing. The remaining servers are expected to arrive at
the datacenter during January
2024.
To help finance the growth of Bit Digital AI, the Company has
executed a sale-leaseback agreement with a third party. Under the
agreement, Bit Digital has agreed to sell the third party 96 AI
servers, representing 768 GPUs, and lease them back for a period of
three years. The lease rate represents a percentage of the total
contracted rate for those GPUs and the Company will also pass
through pro-rated operational expenses for those units to the third
party.
Sam Tabar, Bit Digital's CEO,
commented: "We are excited to accelerate the growth of Bit Digital
AI. The first stage of our customer contract will commence shortly,
and we look forward to helping our customer achieve the full scope
of their AI vision. Our AI business is ramping at an opportune time
given the upcoming bitcoin 'halving', and we believe
these two businesses will be complementary and strengthen our
overall financial profile long term."
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.