NEW
YORK, Oct. 23, 2023 /PRNewswire/ -- Bit Digital,
Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a sustainable
digital infrastructure platform for digital assets and cloud
computing services, headquartered in New
York, is pleased to announce the launch of Bit Digital AI, a
new business line that will provide specialized infrastructure to
support generative artificial intelligence ("AI") workstreams.
The Company has commenced Bit Digital AI operations by
signing a binding term sheet with a customer to support their
GPU-accelerated workloads. Under the agreement, Bit Digital will
provide the customer with rental services for a minimum of 1,024
GPUs and a maximum of 4,096 GPUs. The total number of GPUs,
contract length, and corresponding unit pricing will be determined
upon signing the master service agreement. Concurrently, Bit
Digital has agreed to purchase 1,056 NVIDIA HGX H100 GPUs and has
funded the initial deposit for the purchase order.
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 $35 million. The
FusionOne HPC solution is an integrated HPC platform, and each
configuration ordered by Bit Digital includes NVIDIA HGX H100
8-GPUs, for a total of 1,056 GPUs. The GPUs are expected to be
delivered to the Company by the end of 2023 and will be deployed at
a Tier-3 datacenter to be announced at a later date. Bit Digital
intends to finance the purchase with a mix of cash on hand, digital
assets on the balance sheet, new equity issuance, and potentially
equipment financing.
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 $23 million and
$27 million in annual revenue. The
maximum contract value for 4,096 GPUs with a three-year contract
term exceeds $250 million worth of
revenue. Revenue generation is expected to begin in January 2024, and the contract is expected to
contribute substantially higher margins than the Company's existing
business operations. Bit Digital will source additional GPUs
in the event the finalized contract exceeds the minimum 1,024
figure and expects to be able to take delivery of such additional
GPUs during fiscal Q1 2024.
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 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 specialized
cloud-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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/bit-digital-inc-launches-new-ai-business-secures-customer-contract-worth-up-to-257-million-procures-nvidia-h100-gpus-301963436.html
SOURCE Bit Digital, Inc.