Bit Digital, Inc. Secures New Multi-Year Colocation Agreement with a Leader in AI Hardware

Rhea-AI Summary

Bit Digital (NASDAQ: BTBT) has announced a new five-year colocation agreement with a leading AI hardware innovator. The contract, to be executed through Bit Digital's rebranded HPC business WhiteFiber and its data center platform Enovum, involves providing 5 MW (IT load) of built-to-suit data center infrastructure.

The agreement will be fulfilled at a data center within Enovum's proprietary development pipeline, with the specific location to be announced later. The contract is expected to commence in mid-2025, marking a significant step in Bit Digital's expansion into AI infrastructure services.

Positive

• Secured 5-year colocation contract for 5 MW IT load capacity
• Expansion into AI infrastructure services market
• Diversification of revenue streams beyond crypto mining

Negative

• Location uncertainty for the data center implementation
• Contract commencement delayed until mid-2025

News Market Reaction

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-0.97% News Effect

On the day this news was published, BTBT declined 0.97%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, Feb. 10, 2025 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company") announced today that it has secured a colocation contract with a leading AI hardware innovator. The agreement will be executed through WhiteFiber, Inc. ("WhiteFiber"), the Company's newly rebranded HPC business, which includes cloud services and its data center platform, Enovum Data Centers Corp. ("Enovum"). Under the agreement, the Company will provide the client with 5 MW (IT load) of built-to-suit data center infrastructure for a period of five years. The contract will be fulfilled at a data center within Enovum's proprietary development pipeline, with the location to be announced at a later date. The Company anticipates the contract will formally commence in mid-2025.

Sam Tabar, CEO of Bit Digital, commented: "Bit Digital is thrilled to partner with a company at the forefront of AI innovation in North America. This agreement underscores their confidence in our ability to deliver sophisticated, high-performance colocation solutions tailored for next-generation AI workloads. We are excited to support this client's unique computing needs with our expertly designed data center infrastructure, delivering the reliability and scalability essential for AI innovation."

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing ("HPC") infrastructure and digital asset production headquartered in New York City. The Company's HPC business operates under the WhiteFiber Inc. ("WhiteFiber") brand. Our operations are located in the US, Canada, and Iceland. 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, 2023 ("Annual Report"). Notwithstanding the fact that Bit Digital Inc. has not conducted operations in the PRC since September 30, 2021 we have previously disclosed under Risk Factors in our Annual Report: "We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China in a certain period from now on." Although the statute of limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five years. 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.

FAQ

What is the size and duration of BTBT's new colocation agreement?

The agreement is for 5 MW (IT load) of data center infrastructure and has a duration of five years.

When will BTBT's new AI hardware colocation contract begin?

The contract is anticipated to formally commence in mid-2025.

Which subsidiary will execute BTBT's new colocation agreement?

The agreement will be executed through WhiteFiber, Bit Digital's rebranded HPC business, which includes Enovum Data Centers.

Where will BTBT's new AI hardware colocation facility be located?

The specific location will be announced at a later date, but it will be within Enovum's proprietary development pipeline.