Bit Digital Expands Contract for Enhanced AI Computing Power

Bit Digital, a company listed on NASDAQ under the ticker BTBT, has recently made a significant expansion to the contract of its Bit Digital AI business sector. The development signifies the company's proactive steps in cementing its position in the field of artificial intelligence.

Enhanced Contract Terms

The aforementioned expansion is centered around Bit Digital's first agreement with a client within its AI business line. This growth is characterized by an increased provision of computational resources. Specifically, the company will now supply an additional 512 GPUs (Graphics Processing Units), which are essential for executing complex computations in AI applications, over the course of the next three years.

Financial Impact

As a result of this new arrangement, the total contract value has substantially risen, and Bit Digital anticipates over $50 million in annualized revenue. This figure represents a notable financial boon for BTBT, underscoring the lucrative nature of the AI computing sector.

Strategic Sale-Leaseback Deal

In alignment with its strategic initiatives, Bit Digital has also engaged in a sale-leaseback transaction. In this deal, the company has agreed to sell 96 AI servers to a third party. More intriguingly, Bit Digital will simultaneously lease back these servers for a term of three years. This nuanced strategy allows Bit Digital to monetize its assets while retaining operational capacity.

expansion, AI, revenue