Bit Digital partners with AI Compute Fund to deploy GPUs at scale across managed infrastructure.

Bit Digital Inc (NASDAQ:BTBT) has signed a Master Services Agreement with a new client, the AI Compute Fund managed by DNA Holdings Venture Inc., to provide high-performance computing solutions. The agreement encompasses the provision of 576 Nvidia H200 GPUs over a two-year term, with operations expected to commence in February 2025. The deal, which builds on a term sheet disclosed in November, will see Bit Digital supplying 72 H200 servers to the customer.

The contract represents a potential revenue of approximately $20.2 million and brings with it significant logistical requirements. The GPUs required for this contract are currently on order and will be delivered to a third-party data center in Iceland. This agreement comes as Bit Digital has been actively expanding its infrastructure capabilities, having placed a $30 million purchase order in December for 130 H200 servers to support additional customer agreements.

Bit Digital CEO Sam Tabar characterized the collaboration as strategically significant, stating that it "underscores our commitment to delivering high-performance computing solutions tailored to our clients' evolving needs." He described the contract as "a meaningful step toward achieving our long-term growth objectives," noting that the company now expects to reach its $100 million annualized revenue run-rate goal for its HPC business in early 2025.

Tabar emphasized that the company's approach to growth prioritizes quality and financial discipline. "While we now expect to reach our $100 million annualized revenue run-rate goal for our HPC business in early 2025, this timeline reflects a deliberate strategy to prioritize high-quality revenue opportunities and disciplined capital management," the CEO said. He added that "as we navigate a significant chip upgrade cycle, we have been selective about the deals we pursue, focusing on the right customers, favorable terms, and pricing. This approach enables us to mitigate residual value risk while maintaining the financial flexibility needed to support our data center expansion and next-generation GPU investments."