NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a New York-based company specializing in high-performance computing (HPC) infrastructure and digital asset production, has secured a $20.2 million contract with DNA Holdings Venture Inc.'s AI Compute Fund. The company, which has shown impressive revenue growth of 167% in the last twelve months, will provide the fund with 576 Nvidia (NASDAQ:NVDA) H200 GPUs over a two-year period starting February 2025. According to InvestingPro data, analysts maintain a strong buy consensus on the stock with price targets ranging from $5.50 to $7.00.
This deal follows a term sheet signed on November 20, 2024, and is part of Bit Digital's strategy to reach its $100 million annualized revenue run-rate goal for its HPC business in early 2025. The company will fulfill the contract using GPUs that are currently on order, with delivery expected at a third-party data center in Iceland.
Bit Digital's CEO, Sam Tabar, expressed enthusiasm about the partnership, stating that it aligns with the company's focus on high-quality revenue opportunities and disciplined capital management. He highlighted the selective approach to deals, aimed at mitigating residual value risk and maintaining financial flexibility for data center expansion and investment in next-generation GPUs.
The contract is seen as a significant step towards Bit Digital's long-term growth objectives, with the company leveraging its robust balance sheet and strong pipeline of opportunities to sustain growth and strengthen its position in the HPC market.
DNA Holdings Venture Inc. is known for integrating Web 3, cryptocurrency, artificial intelligence, and capital markets to create innovative financial ecosystems. Bit Digital, with operations in the US, Canada, and Iceland, provides infrastructure for bitcoin mining and other digital asset production.
Investors are cautioned that investing in Bit Digital securities involves high risk, as detailed in the company's Annual Report. With a beta of 4.83, the stock exhibits significant volatility compared to the market. The company has not operated in the People's Republic of China (PRC) since September 30, 2021, but acknowledges the possibility of fines and penalties from previous non-compliance, which could impact its business and the value of its securities. For comprehensive risk analysis and detailed financial metrics, investors can access InvestingPro's extensive company research tools.
This announcement is based on a press release statement, and potential investors are advised to consider the risks and uncertainties before making an investment decision.
In other recent news, New York-based Bit Digital, Inc. has made significant strides in its operations. The company recently announced the acquisition of a new site in Montreal, Canada, to expand its data center operations. The site, known as MTL2, was purchased for approximately USD $23.3 million and will be upgraded to Tier-3 data center standards. The purchase is part of Bit Digital's broader strategy to increase its data center capacity to 32MW by 2025.
In a separate development, B. Riley Financial upgraded its stock price targets for Bit Digital Inc., citing the recent surge in Bitcoin prices. Furthermore, H.C. Wainwright reaffirmed its Buy rating and $7.00 stock price target for Bit Digital, following the company's third-quarter earnings report. Despite a decrease in sales due to the impact of the Bitcoin halving event, Bit Digital's High-Performance Computing (HPC) segment experienced significant growth.
Bit Digital also disclosed its October financial figures, showing revenue from digital asset production and HPC services, along with updates on its cryptocurrency holdings and liquidity. The company reported approximately $4.3 million in revenue from 256 active servers and produced 52.2 bitcoins in October. Additionally, Bit Digital announced the execution of a Master Service Agreement with Boosteroid, a global cloud gaming provider.
These are the recent developments in Bit Digital's operations, reflecting the company's ongoing progress and growth.
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