Bit Digital, Inc. announced that it has increased the scope of its contract with its first customer of its Bit Digital AI business line. Under the terms of the agreement, Bit Digital will supply the customer with computational power from an additional 512 GPUs for a period of three years. The total contract value with the customer for an aggregate of 2,048 GPUs is now worth more than $50 million of annualized revenue to Bit Digital.

To fulfill the contract, the Company has placed a purchase order for 64 servers manufactured by Super Micro Computer, Inc., an authorized Nvidia OEM, that are equipped with 512 Nvidia HGX H100 GPUs along with related equipment, which are expected to be delivered to the Company during January 2024. The servers will be deployed in Iceland at the datacenter where the Company's existing AI servers are located. As of the date of this press release, 128 AI servers have been successfully installed at the datacenter in Iceland and are undergoing testing.

The remaining servers are expected to arrive at the datacenter during January 2024. To help finance the growth of Bit Digital AI, the Company has executed a sale-leaseback agreement with a third party. Under the agreement, Bit Digital has agreed to sell the third party 96 AI servers, representing 768 GPUs, and lease them back for a period of three year.

The lease rate represents a percentage of the total contracted rate for those GPUs and the Company will also pass through pro-rated operational expenses for those units to the third party.