Bit Digital Inc (NASDAQ:BTBT) told investors it has struck a deal with Boosteroid Inc for an initial order of 300 GPUs that are expected to generate around $4.6 million in revenue over the five-year term, with the option to expand the number of GPUs to up to 50,000.
The high-performance computing specialist said it expects to complete deliveries to the cloud gaming provider and begin earning revenue from the contract by the end of this month.
Bit Digital said the new master service agreement, which follows the signing of a binding term sheet in August, provides Boosteroid with the option to expand in increments of 100 servers, up to 50,000 servers.
The full number of services in the agreement would represent a potential $700 million revenue opportunity for Bit Digital over the five-year term, contingent on deployment plans and market conditions.
In the initial order, Boosteroid will be supplied with customized GPU servers based on AMD EPYC fourth-generation CPUs and RX7900XT GPUs.
Bit Digital CEO, Sam Tabar, said: "We are thrilled to solidify our partnership with Boosteroid and embark on what we see as a substantial growth opportunity for both companies.
"Our team is committed to delivering high-quality service in the initial phase, laying the groundwork for significant expansion in 2025."
Bit Digital said Boosteroid is the world's third-largest cloud gaming provider, with a GPU-based infrastructure network spanning 22 data centers in Europe, North America, and South America, with 10 more expected to launch by the end of 2024.
It partners with major brands like Google for cloud gaming on Chrome OS, and collaborates with Microsoft, Samsung, LG, Hisense, Philips, Sharp and others.
Shares of Bit Digital had added 2.5% by early Tuesday afternoon.
--Updates with share price--