Bit Digital strengthens GPU cloud business with new customer agreement
Published: 08:37 24 Jan 2025 EST
Bit Digital Inc (NASDAQ:BTBT) has entered into a new agreement with a key customer to provide 464 Nvidia B200 GPUs.
The arrangement replaces a previous agreement for 2,048 H100 GPUs, and the company said it remains in discussions with the customer regarding additional GPU contracts for 2025.
"This contract delivers significantly improved margins compared to the original plan, which included a sale-leaseback agreement for a portion of the deployment,” Bit Digital CEO Sam Tabar said in a statement.
“We look forward to exploring additional new business with this customer for 2025 while remaining focused on execution."
Per the agreement, Bit Digital will supply 58 Nvidia B200 servers (464 GPUs) over 18 months, generating approximately $15 million in annualized revenue.
The customer will prepay two months of service fees but has the option to offset 100% of the fees against a $30 million non-refundable deposit previously paid to Bit Digital.
The contract is set to begin on June 30, 2025, with the GPUs deployed in Iceland.
To support the agreement, Bit Digital has ordered 58 Nvidia B200 servers for approximately $21 million. The company plans to finance this purchase using cash and customer deposits and will retain full ownership of the servers, which are expected to be delivered well ahead of the service start date.
Investors welcomed the announcement, sending Bit Digital’s shares 3.8% higher before Friday’s opening bell.
Bit Digital is a New York-based global platform for high-performance computing infrastructure and digital asset production.
