Bit Digital Acquires HPC Data Center for $46 Million
Bit Digital's bitcoin hashrate remains mostly flat since the halving
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Bit Digital (BTBT) is doubling down on its high-performance computing (HPC) business with the acquisition of a Tier 3 data center for $46 million while maintaining an asset-light approach to its bitcoin mining operations.
Bit Digital announced on Monday after the market closed that it completed the transaction on Oct. 11 to acquire Enovum Data Centers, a fully operational Tier 3 facility in Montreal, Canada. According to an investor presentation deck, the data center is “100% leased with 4 MW under contract.”
The acquisition was financed primarily through cash reserves, along with approximately 1.62 million newly issued BTBT shares. It remains unclear whether Bit Digital liquidated any of its digital assets to fund the deal. As of Jun. 30, the company reported $61.7 million in cash, and as of Sep. 30, held Bitcoin and Ethereum valued at $118 million.
This move comes almost a year after Bit Digital entered the HPC market, offering GPU rental services to support AI workloads. Previously, similar to its bitcoin mining strategy, Bit Digital’s HPC hardware was colocated in third-party facilities.
The company views the acquisition as a foundation for further expansion in HPC revenue. Bit Digital reported total revenues of $30 million and $29 million in Q1 and Q2, respectively, across its Bitcoin mining, Ethereum staking, and HPC businesses. HPC accounted for 26% and 43% of those revenues, reflecting an increase in demand, which was driven by the decrease in Bitcoin mining revenue due to the halving.
According to Bit Digital, Enovum has a development pipeline of 288 megawatts, with plans to bring an additional 8 MW online by the end of Q2 next year, requiring $50 million in capital investment.
“The Company expects run-rate, colocation EBITDA for the Enovum business to exit 2Q25 at approximately $13MM based on that development schedule,” Bit Digital claimed in the release, adding that it is tentatively planning to energize an additional 20 MW by the year-end 2025.
To finance these expansions, Bit Digital intends to pursue debt financing to cover capital expenditures, including expanding Enovum’s capacity and acquiring additional GPU hardware.
Meanwhile, Bit Digital has taken a more conservative approach to its bitcoin mining operations compared to its peers. The company’s bitcoin hashrate decreased following the Bitcoin halving and has remained relatively stable in recent months.
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