Business
Bit Digital, Inc. Announces Binding Term Sheet with New HPC Customer Representing a More Than $700 Million Revenue Opportunity Over Five-Year Term
NEW YORK, Aug. 19, 2024 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and
About this update from Bit Digital, Inc.
[{"type":"text","content":"NEW YORK, Aug. 19, 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, announced today that it has signed a binding term sheet with Boosteroid Inc. (\"Boosteroid\"), a new customer for its high-performance computing (\"HPC\") business.\n\n \n \n \n \n \n \n\n \nKey Highlights\nInitial 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 in revenue to Bit Digital over the five-year term, or approximately $2.6 million per year.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 over the five-year term, depending on the deployment plan and subject to market conditions.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. and Europe. 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.\"\nIvan Shvaichenko, Founder and President of Boosteroid, commented: \"This collaboration between Boosteroid and Bit Digital enhances ...