Bit Digital Inc (NASDAQ:BTBT) shares rose over 9% after it said it has acquired Montreal-based Enovum Data Centers for approximately C$62.8 million (US$46 million).
The acquisition, announced on Monday, vertically integrates Bit Digital’s operations by adding a fully operational Tier 3 high-performance computing (HPC) datacenter and a development pipeline of over 280 megawatts (MW) in major metropolitan areas.
The deal includes Enovum’s 4MW datacenter, which is fully leased and powered by renewable hydroelectric energy.
New York-based Bit Digital said it plans to leverage the acquisition to provide colocation and on-demand computing services, complementing its existing GPU infrastructure.
The company plans to expand to an additional 8MW by the end of Q2 2025.
Bit Digital CEO Sam Tabar called the acquisition “transformational” in a statement.
“This transaction is the culmination of many months of due diligence and negotiation. Vertical integration on the HPC side has been a priority for Bit Digital and we believe we were able to achieve this goal at an attractive price,” said Tabar, highlighting the acquisition as a cost-effective move compared to greenfield developments.
“Following this acquisition and contemplating our expansion program, we believe Bit Digital will be well positioned to accommodate inference workloads.”
Enovum’s pipeline includes 93MW currently under letters of intent, with plans to bring a further 20MW online by the end of 2025, pending customer demand and financing.
Bit Digital said it has engaged investment banking services to explore debt financing for the expansion.
The acquisition also aligns with Bit Digital’s strategic focus on proximity to metropolitan areas, particularly for low-latency workloads essential in AI applications.
Enovum’s expertise in data center development and management will remain under the leadership of its key employees.
Shares of Bit Digital were up around 7.8% on Tuesday afternoon.
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