Core Insights - Bit Digital has secured a new data center site in Saint-Jérôme, Québec, to support a 5MW colocation agreement with Cerebras Systems, a leader in generative AI infrastructure [1][4] - The facility will cover approximately 202,000 square feet on 7.7 acres and is designed for current contracted capacity with potential for future expansion [2] - The project will be delivered through WhiteFiber, Bit Digital's high-performance computing platform, with development costs estimated at CAD $55 million (approximately $40 million USD) and a targeted go-live date of July 2025 [3] Company Strategy - The CEO of Bit Digital emphasized that this milestone reflects the company's strategy to deliver purpose-built AI infrastructure at scale, highlighting speed to market as a key differentiator [4] - The partnership with Cerebras is expected to enhance Bit Digital's data center footprint in the greater Montréal region, which is emerging as a hub for AI innovation [4] Financial Structure - The transaction for the new data center was executed under a lease-to-own structure, including a fixed-price purchase option that can be exercised within 12 months [2] - The lease term is set for 20 years, with two options for 5-year extensions [2] Infrastructure Development - The facility is being retrofitted to Tier 3 standards, ensuring high reliability and performance for AI infrastructure [3] - Cerebras has contracted for 5MW of built-to-suit infrastructure under a five-year colocation agreement, with a right of first refusal for any additional capacity [4]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive has a strong emphasis on technology adoption, utilizing various tools to enhance workflows [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - Bit Digital, Inc. announced a strategic partnership between its subsidiary WhiteFiber and Shadeform to provide on-demand NVIDIA B200 GPUs starting in April [1][2] - This partnership aims to enhance access to high-performance AI infrastructure for organizations and developers across more than 100 regions globally [2][3] - The collaboration is expected to democratize high-performance AI capabilities, enabling startups and enterprises to leverage advanced GPU technology without long-term commitments [3] Company Overview - Bit Digital, Inc. is a global platform for high-performance computing (HPC) infrastructure and digital asset production, headquartered in New York City [4] - The company's HPC operations are conducted under the WhiteFiber brand, with facilities located in the US, Canada, and Iceland [4]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company operates with a focus on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5] Market Focus - The news team at Proactive delivers insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3]

Core Viewpoint - The analysis of Bit Digital, Inc. (NASDAQ: BTBT) indicates a downgrade to a 'hold' position following the company's Q3-24 earnings results, reflecting concerns about its performance and outlook [1]. Group 1: Company Performance - The company reported its Q3-24 earnings results, which prompted a reevaluation of its stock position [1]. - Despite holding a long position in the equity, the downgrade suggests potential issues that may affect future performance [1]. Group 2: Analyst Position - The analyst maintains a beneficial long position in shares of BTC-USD, ETH-USD, and BTBT through various financial instruments [1]. - The article expresses the analyst's personal opinions without any compensation from the company, indicating an independent analysis [1].

Financial Data and Key Metrics Changes - Total revenue for 2024 was $108 million, a 141% increase from 2023 [48] - Adjusted EBITDA reached $73 million, compared to $12.4 million in 2023 [53] - Gross profit was $45.7 million, nearly threefold increase from 2023, with gross margins expanding approximately 500 basis points to 42.3% [51] Business Line Data and Key Metrics Changes - HPC revenue made up over 40% of full-year revenue and more than half of Q4 revenue, with cloud services generating $45.7 million in its first year of operations [7][49] - Colocation services contributed $1.4 million from October 12 through the year-end [49] - Bitcoin mining revenue was $58.6 million, up 32% year-over-year, but accounted for only 54% of total revenue in 2024, down from 98% in 2023 [41][48] Market Data and Key Metrics Changes - The company has seen significant demand for high-performance computing (HPC) infrastructure, exceeding current capacity [56] - The demand for GPUs is surging, with a strong customer pipeline and contracts representing nine-figure annual revenue [19][23] Company Strategy and Development Direction - The acquisition of Enovum vertically integrated data center operations and expanded customer base, enhancing infrastructure scaling capabilities [8][25] - The company is focused on a disciplined approach to GPU procurement and capital deployment to avoid excess inventory risk [20] - The strategic focus is on expanding both cloud services and colocation services to create a durable and diversified cash flow [59] Management's Comments on Operating Environment and Future Outlook - Management believes the current market sentiment does not accurately reflect the company's growth potential, particularly in HPC [57] - The company is actively exploring financing options for its HPC business to support growth without diluting equity [61][151] - Future demand for AI compute is expected to be driven by inference, with strategic developments in metropolitan areas to meet customer needs [40] Other Important Information - The company is debt-free and has approximately $98.9 million in cash and restricted cash as of December 31, 2024 [54] - Capital expenditures for 2024 totaled $94 million, primarily for GPU purchases and the acquisition of Montreal 2 [54] Q&A Session Summary Question: What is the current run rate for cloud services? - The current run rate is approximately $72 million with the addition of DNA Funds as a customer [66][67] Question: What is the expected revenue contribution from new GPU deployments? - The B200s are expected to start generating revenue in April, while the H200s' timeline is uncertain due to ongoing R&D [75] Question: What was the fourth-quarter revenue for the colocation business? - The colocation revenue recognized was $1.4 million from the date of acquisition [78] Question: Can you provide details on the 100-megawatt site under LOI? - The site has 24 megawatts of power available, with a path to 48 megawatts and discussions for an additional 100 megawatts by the end of 2025 [87] Question: How confident is the company in sourcing infrastructure equipment? - The equipment for upcoming deployments has been secured, with a large portion already delivered [115] Question: What is the company's strategy regarding Bitcoin mining? - The focus remains on optimizing the fleet and maintaining Bitcoin exposure in a capital-efficient manner, rather than expanding for growth's sake [45][124]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $108 million, a 141% increase from 2023 [33] - Adjusted EBITDA reached $73 million, compared to $12.4 million in 2023 [37] - Gross profit was $45.7 million, nearly threefold increase from 2023, with gross margins expanding approximately 500 basis points to 42.3% [35][36] Business Line Data and Key Metrics Changes - Bitcoin mining revenue was $58.6 million, up 32% year over year, despite a 37% decline in Bitcoin production [34] - Cloud services generated $45.7 million in its first year of operations, becoming the largest business segment by revenue in the second half of 2024 [34][9] - Colocation services contributed $1.4 million from October 12 through year-end, following the acquisition of Innovem [34] Market Data and Key Metrics Changes - The HPC business accounted for over 40% of full-year revenue and more than half of Q4 revenue [6] - The company has seen strong demand for B200s, with a potential additional $25 million in annual recurring revenue (ARR) expected from a new cluster [13] - The customer pipeline remains strong, with demand for GPUs outstripping supply [14] Company Strategy and Development Direction - The company is focused on scaling its HPC operations and has integrated its data center operations through the Innovem acquisition [6][19] - A disciplined approach to GPU procurement is being taken to manage capital deployment and avoid excess inventory risk [14] - The company aims to position itself as a leader in AI infrastructure, with a focus on urban data center locations to meet low latency requirements [28][109] Management's Comments on Operating Environment and Future Outlook - Management noted significant and sustained demand for compute infrastructure, which exceeds current capacity [39] - The company believes it is misunderstood by the market, with its stock trading like a pure play Bitcoin miner despite its diversified operations [40] - Future growth is expected to be driven by inference demand in AI compute, with strategic developments in metropolitan areas [28] Other Important Information - The company remains debt-free but is exploring financing options for its HPC business [38][42] - Capital expenditures for 2024 totaled $94 million, primarily for GPU purchases and the acquisition of Montreal II [38] Q&A Session Summary Question: What is the current run rate for cloud services? - The current run rate is $62 million, expected to increase to $72 million with the D&A Fund contract [49][50] Question: What is the revenue contribution from colocation services in Q4? - Colocation revenue recognized was $1.4 million, annualized from the acquisition date [56] Question: Can you provide details on the 100 megawatt site under LOI? - There is currently 24 megawatts of power available, with discussions for an additional 100 megawatts by the end of 2025 [65][66] Question: How confident is the company in sourcing infrastructure equipment? - The company has secured equipment for upcoming deployments and is confident in sourcing for future needs [90] Question: What is the strategy regarding Bitcoin mining? - The focus remains on optimizing the fleet and maintaining Bitcoin exposure without significant growth capital allocation [31][96] Question: How is the company evaluating yield strategies for digital assets? - The company sees a bright future for digital assets and is currently focused on its HPC business [105][107]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Financial Performance - Total revenue for fiscal year 2024 was $108.1 million, a 141% increase compared to the prior year[6] - Revenue from bitcoin mining was $58.6 million for fiscal year 2024, a 32% increase year-over-year[6] - Cloud services revenue was $45.7 million for 2024, compared to nil in the prior year[6] - Adjusted EBITDA was $73.0 million for fiscal year 2024, up from $12.4 million in fiscal year 2023[6] Cash and Liquidity - The Company had cash, cash equivalents, and restricted cash of $98.9 million, with total liquidity of approximately $260.7 million as of December 31, 2024[6] Acquisitions and Investments - The acquisition of Enovum Data Centers in October 2024 was completed for CAD $62.8 million (approximately USD $46 million)[8] - The Company expects to invest approximately $19.3 million to develop a new data center site in Pointe-Claire, QC, expected to be operational by June 2025[8] Bitcoin Production - The Company earned 949.9 bitcoins during fiscal year 2024, a 37% decrease from the prior year[6] Sustainability - Approximately 85% of the fleet's run-rate electricity consumption was generated from carbon-free energy sources as of December 31, 2024[8] Contracts and Revenue Projections - The Company signed a Master Services Agreement with Boosteroid, projected to generate approximately $4.6 million in revenue over five years[8]

Core Viewpoint - Bit Digital, Inc. has reported significant financial growth for Fiscal Year 2024, driven by the launch of its high-performance computing (HPC) services, marking a strategic shift from traditional digital asset mining to a more diversified revenue model [1][8]. Financial Highlights for Fiscal Year 2024 - Total revenue reached $108.1 million, a 141% increase from the previous year, primarily due to the commencement of HPC services [5]. - Revenue from bitcoin mining was $58.6 million, reflecting a 32% year-over-year increase, while cloud services generated $45.7 million, a new revenue stream compared to nil in the prior year [5]. - Adjusted EBITDA was $73.0 million, up from $12.4 million in FY 2023, including $55.7 million in pre-tax gains on digital assets [5]. - GAAP earnings per share improved to $0.19 from a loss of $(0.16) in the previous year [5]. - The company had total liquidity of approximately $260.7 million as of December 31, 2024 [5]. Operational Highlights for Fiscal Year 2024 - The company owned or operated 24,239 miners for bitcoin mining, achieving a maximum hash rate of 2.6 EH/s [4]. - Treasury holdings included 741.9 BTC and 27,623.2 ETH, with fair market values of approximately $69.3 million and $92.1 million, respectively [4]. - The average fleet efficiency was approximately 26.2 J/TH as of December 31, 2024 [5]. Strategic Developments - The acquisition of Enovum Data Centers in October 2024 for approximately $46 million enhanced the company's HPC operations and introduced colocation services [6][9]. - A Master Services and Lease Agreement with Boosteroid Inc. is projected to generate approximately $4.6 million in revenue over five years, with potential for significant expansion [6]. - The company signed multiple new cloud services agreements in January 2025, indicating ongoing growth in this segment [6]. Management Commentary - The management highlighted the pivotal shift in the company's business model, with HPC services contributing nearly half of total revenue in 2024 [8]. - The focus on operational efficiencies and a strong liquidity position allows for targeted investments to enhance long-term competitiveness [11].