NEW YORK - Bit Digital, Inc. (NASDAQ: BTBT), a high-performance computing infrastructure and digital asset production company, has secured a new contract with a significant customer for the provision of 464 Nvidia (NASDAQ:NVDA) B200 GPUs. The deal, which replaces a previous arrangement for 2,048 H100 GPUs, is set to bring in approximately $15 million in annualized revenue for Bit Digital. According to InvestingPro data, this new contract could further boost the company's impressive 167% revenue growth over the last twelve months, with analysts expecting continued sales growth this year.
The agreement stipulates that Bit Digital will supply the customer with 58 Nvidia B200 servers for an 18-month period, starting June 30, 2025. The GPUs will be deployed in Iceland. To meet the terms of the contract, Bit Digital has ordered the 58 servers at a cost of around $21 million, with delivery expected well before the service start date. The company plans to finance the purchase through cash on hand and customer prepayments, maintaining full ownership of the servers. With a strong current ratio of 5.27 and more cash than debt on its balance sheet, InvestingPro analysis suggests the company is well-positioned to handle this investment. InvestingPro subscribers can access 8 additional key financial health indicators and exclusive insights about the company's financial position.
Bit Digital's CEO, Sam Tabar, expressed satisfaction with the new agreement, highlighting the improved margins over the original plan and the potential for additional business with this customer in 2025. The company's focus remains on execution while exploring further contracts.
Investors are reminded that investing in Bit Digital's securities carries a high degree of risk. The company, which ceased operations in the People's Republic of China (PRC) as of September 30, 2021, has previously noted potential liabilities and non-compliance penalties related to its former business activities in the PRC. While the statute of limitations for such non-compliance is typically two years, it could extend to five years if the operations were deemed a threat to financial security.
Bit Digital's forward-looking statements are based on assumptions and involve risks and uncertainties. The company cautions investors not to place undue reliance on these statements, which are only valid as of the date of the press release. Actual results could differ due to various factors, including changes in network-wide mining difficulty rate and bitcoin hash rate, among others.
This news article is based on a press release statement from Bit Digital, Inc.
In other recent news, Bit Digital Inc. has been the subject of several important developments. Analysts from Craig-Hallum initiated coverage on the company with a Buy rating and set a price target of $6.00, reflecting the company's strong momentum and potential for transformation. Bit Digital's acquisition of Enovum Datacenters and its expansion into GPU as a Service (GPUaaS) has been viewed positively, suggesting potential for a stable and profitable business model.
The company's integration into the AI and high-performance computing sectors has been recognized as a potential catalyst for growth. Bit Digital's recent financial results show strong revenue growth from its GPU Cloud services, generating approximately $4.5 million in December 2024. The company also reported a significant increase in its digital assets, with Bitcoin and Ethereum valued at approximately $69.3 million and $92.1 million, respectively.
Bit Digital has also expanded its infrastructure by acquiring a new site for a data center in Montreal, Canada, aiming to increase its data center capacity to 32MW. Despite a decrease in Bitcoin production, the company continued to invest in its mining operations, purchasing 941 S21 mining units. Analysts from Clear Street, B. Riley Financial, and H.C. Wainwright have provided updates on Bit Digital, with both B. Riley Financial and H.C. Wainwright upgrading their stock price targets for the company. These are the recent developments in Bit Digital's operations.
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