Bit Digital, Inc. (NASDAQ: BTBT) signed an agreement with a customer for 464 Nvidia B200 GPUs in order to expand its GPU Cloud business.
Announced on Friday, the new agreement replaces a former agreement wherein Bit Digital was to provide the customer with 2,048 H100 GPU’s. The company is also continuing to explore the additional GPUT contracts with this customer for 2025.
Bit Digital will provide the customer with 58 Nvidia B200 servers (464 GPUs) for eighteen months under the agreement. This contract generates approximately USD$15 million in annualized revenue for Bit Digital and includes a two-month prepayment from the customer.
The customer can deduct 100 per cent of the service fees from the USD$30 million non-refundable deposit they previously paid to the company. Scheduled to begin on June 30, 2025, the contract involves deploying the GPUs in Iceland.
To fulfill the agreement, Bit Digital has ordered 58 Nvidia B200 servers for approximately USD$21 million, with delivery expected well before the service start date. Bit Digital plans to finance the purchase using cash and customer deposits while retaining full ownership of the servers.
“This contract delivers significantly improved margins compared to the original plan, which included a sale-leaseback agreement for a portion of the deployment,” said Sam Tabar, CEO of Bit Digital.
“We look forward to exploring additional new business with this customer for 2025 while remaining focused on execution.”
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Bit Digital expanded beyond blockchain to include artificial intelligence
Bit Digital is a publicly traded company specializing in bitcoin mining and blockchain technology. Headquartered in New York, the company primarily focuses on mining Bitcoin through a combination of hosted and self-mining operations.
Bit Digital has also ventured into infrastructure development and GPU computing, expanding its offerings to cater to growing demand for blockchain and artificial intelligence applications. With a commitment to sustainability, the company has made efforts to align its mining operations with renewable energy sources to reduce its environmental impact.
The company’s business model revolves around acquiring and managing mining hardware, securing cost-effective hosting agreements, and leveraging strategic partnerships. It has diversified its verticals to include high-performance computing. This was recently highlighted by its order of 58 Nvidia B200 servers to support GPU-intensive workloads.
The company is also aiming to capitalize on the growing relevance of digital assets and blockchain innovation by positioning itself at the intersection of cryptocurrency and other emerging technologies.
