Bit Digital Eyes $20M HPC Revenue with New AI Client

Bit Digital is poised to deploy 576 Nvidia H200 GPUs for a new high-performance computing (HPC) customer that is said to represent a revenue opportunity of about $20.2 million over two years.

The Bitcoin mining and HPC provider said on Tuesday that it entered into a master servicing agreement with DNA Holdings Venture’s AI Compute Fund. Services under the contract are expected to begin in February 2025.

The contract builds on a previously signed term sheet announced on November 20, 2024. Under its terms, Bit Digital will provide 72 H200 servers (576 GPUs) to the client for an initial two-year period.

The GPUs will be sourced from a recent purchase order placed by Bit Digital for 130 H200 servers (1,040 GPUs) at a cost of approximately $30 million. The hardware will be deployed to a third-party data center in Iceland, where they will support DNA Fund’s AI Compute operations.

Meanwhile, Bit Digital is expanding its HPC capacity by acquiring an existing tier-3 data center and another property in Canada.

On Monday, Bit Digital said it has purchased a 160,000-square-foot property in Pointe-Claire, Quebec, for $23.3 million to build a 5-megawatt Tier-3 HPC data center. The deal was finalized on Friday and the facility will be powered entirely by renewable hydroelectricity supplied by Hydro-Quebec.

According to the company, the acquisition was initially funded with cash on hand, with mortgage financing currently being arranged to cover both the purchase and the estimated $19.3 million cost of retrofitting the facility to Tier-3 standards.

Bit Digital expects the project to be completed and fully operational by May 2025. Bit Digital also noted that the facility’s development is tailored to support next-generation Nvidia GPUs, aligning with the requirements of another new customer.

The acquisition marks Bit Digital’s second major data center purchase in Montreal this year, following a $46 million purchase of a turnkey Tier-3 HPC facility. The $23.3 million deal is part of the company’s broader strategy to expand its HPC capacity to 32MW by 2025.

Bit Digital reported an HPC revenue of $12 million in Q3, which surpassed its Bitcoin mining revenue of $10 million for the first time. The company’s realized Bitcoin mining capacity has been consistently declining amid rising competition from its larger rivals in the industry.