Bit Digital

The Term Loan provides for loans in an aggregate principal amount of up to $100 million, which may be increased to $150 million (the “Facility Size”) upon mutual agreement of the parties. ... The interest rate is equal to 9.5% per annum before the Rate Step Down Event, and 8% thereafter. The “Rate Step Down Event” will occur when the Borrower has delivered reasonable evidence to the Lender that the following conditions have been satisfied: (i) the development of a 40 megawatt Phase I buildout of NC-1 has been substantially completed and (ii) at least 80% of the Phase I data center capacity has been leased to tenants at market rates.

In the second quarter of 2024, the Company finalized an agreement to supply its existing customer with an additional 2,048 GPUs over a three-year period. ... In early August, the customer made a non-refundable prepayment of $30.0 million for the services to be rendered under this agreement.

In October 2024, Bit Digital purchased 42 H200 GPU servers (336 GPUs) for approximately $9.7 million. Those servers were subsequently deployed in Iceland for internal purposes and future client deployments.

On October 9, 2024, the Company executed a Master Services and Lease Agreement ("MSA") with Boosteroid Inc. ("Boosteroid"), a global cloud gaming provider. Following a binding term sheet with Boosteroid on August 19, 2024. The Company finalized an initial order of 300 GPUs, projected to generate approximately $4.6 million in revenue over the five-year term. ... The MSA provides Boosteroid with the option to expand in increments of 100 servers, up to 50,000 servers, representing a potential $700 million revenue opportunity over the five-year term, subject to deployment plans and market conditions.

Extension: 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.

June 2024: Customer contract signed for an additional 2,048 GPUs that will contribute approximately $42 million of incremental revenue; expected in 2025

In the second quarter of 2024, the Company finalized an agreement to supply its existing customer with an additional 2,048 GPUs over a three-year period. ... In late July, at behest of the customer, the Company and the customer mutually agreed to temporarily delay the purchase order so that the customer could evaluate potentially upgrading the purchase order to include newer generation Nvidia GPUs. ... In early August, the Company received $30.0 million as a non-refundable prepayment from its customer, half of which will be distributed to the Company's leasing partner.

The Company finalized a service agreement with its first customer, for the provision of HPC services from a total of 2,048 GPUs over a three-year period. On January 22, 2024, approximately 192 servers (1,536 GPUs) were deployed at a Tier-3 data center and began generating revenue, and subsequently on February 2, 2024, approximately an additional 64 servers (512 GPUs) also started revenue generation.

During the quarter ended March 2024, the Company entered into a sales-type lease agreement as a lessor for its data storage equipment. The term of the lease is scheduled to expire in December 2026. ... we entered into a sales-type lease agreement for a portion of these assets valued at $3,353,608 with a third party.

The Company subsequently finalized a service agreement with a customer to provide the customer with computational power from 2,048 GPUs over a three-year period. To fulfil the contract, the Company purchased 256 servers manufactured by Super Micro Computer, Inc., an authorized Nvidia OEM, that were equipped with 2,048 Nvidia HGX H100 GPUs along with related equipment. ... The GPUs are deployed at a third-party datacenter located in Iceland.

the Company has agreed to increase the scope of the initial MSA contract with the Initial Customer. Under the terms of the MSA, as amended and novated by the Novation Agreement, the Company will supply the Initial Customer with computational power from an additional 512 graphic processing units ("GPUs") (in addition to the initial GPUs, for a total of 2,048 GPUs) for a period of three years. ... The total contract value with the Initial Customer for the aggregated 2,048 GPUs is estimated to be worth more than $50 million of annualized revenue to the Company.

During the three months ended March 31, 2024, we purchased data storage equipment totaling $5,315,202.

During the year ended December 31, 2023, the Company entered into a capacity lease agreement for its high performance computing services designed to support generative AI workstreams. The initial lease term is three years, with automatic renewals for successive twelve-month periods. ... Total undiscounted lease payments $6,500,000

Extension: Automatic renewals for successive twelve-month periods.

Deferred revenue primarily pertains to prepayments received for HPC services from a customer, which commenced in January 2024. ... Beginning balance $13,073,449 ... Ending balance $3,751,588

To help finance this operation, the Company subsequently entered into a sale-leaseback agreement with a third party, selling 96 AI servers (equivalent to 768 GPUs) and leasing them back for three years.

the Company has placed a purchase order for 64 additional 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 were delivered to the Company during January 2024.

the Company has executed a sale-leaseback agreement with a third party. Under the agreement, the Company has agreed to sell the third party 96 AI servers, representing 768 GPUs, and lease them back for a period of three years. 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.