Bit Digital Inc (NASDAQ:BTBT) CEO Sam Tabar talked with Proactive about the company’s recent acquisition of Enovum Data Centers, a high-performance computing (HPC) facility operator based in Montreal.
This acquisition marks a major step in Bit Digital’s strategic expansion, positioning it as a diversified player in data center operations, GPU cloud services, and digital assets.
Proactive: Exciting news from the company. Enovum is a new company you have acquired. Tell me a little bit about this.
Sam Tabar: Certainly. We recently announced the acquisition of Enovum Data Centers, an owner, operator, and developer of HPC data centers. So now Bit Digital has three distinct businesses. First, we have an HPC data center operations business, which includes colocation revenues, and we have 13 clients at that location. Secondly, we have a GPU cloud business, offering GPU as a service with contracts totaling hundreds of millions of dollars, locked in over three to five years. And third, we have our digital assets business, which includes Bitcoin mining and Ethereum staking. We view our digital assets business as a free call option, meaning we’re positioned to benefit regardless of market cycles. Our HPC revenues are secure for years, and if Bitcoin and Ethereum values rise, that’s an added benefit.
Can you tell us more about the deal itself?
Of course. We acquired Enovum Data Centers for $46 million, mostly in cash, with some rollover shares going to the Enovum management team. Now, we’ve vertically integrated Bit Digital’s HPC operations with an established, fully operational, and fully leased Tier 3 data center located in the heart of Montreal, a major metropolitan area. This is an ideal location for accessing a diverse range of existing and prospective colocation customers. We also have a strong expansion pipeline with 288 MW, most of which is under LOI. Plus, with Enovum, we’ve acquired a highly experienced team in Tier 3 data center development, helping us avoid the usual startup challenges.
You mentioned that location is important. Can you expand on why Montreal was appealing for this acquisition?
Certainly. The location is crucial. In AI, we’re currently in the training stage where latency isn’t a major issue. But when AI shifts to inference, which is about predicting patterns, latency will be critical. This shift to inference will likely happen in about two years, and at that point, you need Tier 3 data centers in major metropolitan areas to minimize latency. This is especially important in fields like finance and medicine, where even a microsecond delay can be significant. So, positioning our data centers in a location like Montreal allows us to serve these low-latency needs for AI applications.
And finally, with this deal completed, are you planning similar moves, or are you satisfied with where the company is now?
We’re far from satisfied. Right now, we have 4 MW in capacity, which yields 10 times more revenue per megawatt compared to Bitcoin mining. With 288 MW in the pipeline, we’re focused on medium-term development in this space. So, definitely stay tuned for future announcements.
Quotes have been lightly edited with clarity and style