Bit Digital, Inc. Announces Binding Term Sheet with New HPC Customer Representing a More Than $700 Million Revenue Opportunity Over Five-Year Term
Rhea-AI Summary
Bit Digital (Nasdaq: BTBT) has signed a binding term sheet with Boosteroid Inc. for its high-performance computing (HPC) business. The initial agreement includes a purchase of GPU servers with a five-year service duration, expected to generate $13 million in revenue over the term. Boosteroid has options to expand up to 50,000 GPU servers, representing a potential $700 million revenue opportunity for Bit Digital. The initial deployment, featuring AMD EPYC 4th Gen CPUs and RX7900XT GPUs, is planned across 10+ data centers in the U.S. and Europe, starting within 2-3 months. This partnership aims to enhance Boosteroid's position in the global cloud gaming market while expanding Bit Digital's HPC business into new end-markets.
Positive
- Initial agreement expected to generate $13 million in revenue over five years
- Potential for up to $700 million in revenue if Boosteroid expands to 50,000 GPU servers
- Expansion into new end-market for HPC offerings
- Deployment planned across 10+ data centers in the U.S. and Europe
Negative
- Full revenue potential dependent on Boosteroid's deployment plans and market conditions
- Agreement conditional upon further diligence, reviews, and approvals
News Market Reaction
On the day this news was published, BTBT gained 20.74%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Highlights
- Initial Agreement: Upon signing a master service agreement ("MSA"), Boosteroid will place an initial purchase for a starting quantity of GPU servers with a five-year service duration. Bit Digital's entry into a MSA is conditioned upon further diligence of Boosteroid, customary legal and business reviews, internal approvals, and execution of an acceptable MSA.
- Revenue Impact: This initial order is expected to generate approximately
$13 million $2.6 million - Scalability: Bit Digital will provide Boosteroid with options to draw down additional servers in multiples of 100, up to a total of 50,000 GPU servers within five years after signing the MSA, depending on their deployment plans. The entire 50,000 GPU deployment represents an aggregate revenue opportunity to Bit Digital in excess of
$700 million - Technology and Deployment: The initial purchase includes GPU-servers based on AMD EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUSTeK Computer Inc. ("ASUS") and AMD for Boosteroid. Deployment is planned across a network of more than 10 data centers in the
U.S. andEurope . The initial deployment is scheduled to begin over the next two to three months.
Sam Tabar, Bit Digital's CEO, commented: "We are excited to expand our HPC business and provide mission-critical computing solutions to Boosteroid, a customer in a new end-market for our HPC offerings. We are impressed with Boosteroid's business model and look forward to supporting their ambitious growth plans. We aim to deliver exceptional service quality and execution, laying the foundation for a long-term and growing partnership between our companies."
Ivan Shvaichenko, Founder and President of Boosteroid, commented: "This collaboration between Boosteroid and Bit Digital enhances our existing partnerships with AMD and ASUS, creating a powerful synergy that will drive us toward our goal of becoming the leader in the global cloud gaming market. By leveraging the advanced computing power provided by Bit Digital and the cutting-edge technology from AMD and ASUS, we are poised to deliver an unparalleled gaming experience to millions of users worldwide. This partnership not only strengthens our GPU-based infrastructure, already one of the widest in the world, but also sets the foundation for long-term innovation and growth within the cloud gaming industry."
About Boosteroid
Boosteroid is the world's third-largest cloud gaming provider, following Microsoft and Nvidia. With a GPU-based infrastructure network spanning 22 data centers and 10 more expected to launch by the end of 2024, Boosteroid serves over 5.7 million users across
About Bit Digital
Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in
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SOURCE Bit Digital, Inc.
FAQ
What is the potential revenue for Bit Digital (BTBT) from the Boosteroid agreement?
When is the initial deployment of GPU servers for Boosteroid scheduled to begin?
What type of GPU servers will Bit Digital (BTBT) provide to Boosteroid?
How many data centers will be involved in the deployment for Boosteroid?
