Bitcoin mining company Bit Digital signs agreement with new AI client, expects to generate approximately $20.2 million in revenue within two years

Bitcoin mining and HPC provider Bit Digital is preparing to deploy 576 Nvidia H200 GPUs for a new high-performance computing (HPC) customer, which it says will result in a revenue opportunity of approximately $20.2 million over two years. The company said on Tuesday that it has signed a master services agreement with DNA Holdings Venture’s AI Compute Fund, with services under the contract expected to begin in February 2025. The contract builds on a previously signed term sheet announced on November 20, 2024. Under its terms, Bit Digital will provide 72 H200 servers (576 GPUs) to the customer over an initial two-year period. The GPUs will come from Bit Digital’s recent purchase order for 130 H200 servers (1,040 GPUs) at a cost of approximately $30 million. The hardware will be deployed to a third-party data center in Iceland, where they will support DNA Fund’s AI computing operations. Meanwhile, Bit Digital is expanding its HPC capacity by acquiring an existing Tier-3 data center and another property in Canada. On Monday, Bit Digital said it had purchased a 160,000-square-foot property in Pointe-Claire, Quebec, for $23.3 million to build a 5MW Tier-3 HPC data center. The deal closed on Friday, and the facility will be powered entirely by renewable hydroelectric power provided by Hydro-Quebec. Bit Digital expects the project to be completed and fully operational by May 2025. Bit Digital also noted that the facility was developed to support the next generation of Nvidia GPUs, in line with the requirements of another new customer. The acquisition is the second large data center Bit Digital has acquired in Montreal this year, following the company's $46 million purchase of a Tier-3 HPC facility. The $23.3 million deal is part of the company's broader strategy to expand its HPC capacity to 32MW by 2025. Bit Digital reported $12 million in HPC revenue in the third quarter, surpassing its $10 million in Bitcoin mining revenue for the first time.