Bit Digital Inc (NASDAQ:BTBT) announced that it has acquired real estate and a building in Montreal, Canada, for a 5MW Tier-3 data center expansion project.
The acquisition, valued at C$33.5 million (US$23.3 million), was finalized on December 27, 2024, and funded initially with cash on hand.
The company plans to secure mortgage financing for both the purchase and the site's development.
The new site, referred to as "MTL2," spans 160,000 square feet and will be retrofitted to meet Tier-3 standards at an estimated cost of C$27.6 million (US$19.3 million).
The facility, expected to be operational by May 2025, will feature advanced cooling technologies, including direct-to-chip liquid cooling and a heat reject loop, and will operate on 100% renewable hydroelectricity provided by Hydro-Quebec, Bit Digital highlighted.
The acquisition supports the company’s goal of expanding its high-performance computing data center capacity to 32MW in 2025 and is part of a larger 288MW pipeline the company announced earlier this year.
Sam Tabar, Bit Digital CEO, described the acquisition as “an important step forward” for the company’s growth ambitions.
“This site is a Class A industrial property that was a former encapsulation manufacturing facility that included premium infrastructure specifications. It is located in one of the most desirable commercial real estate locations in Montreal,” he said.
“By leveraging the existing infrastructure, including over C$750,000 worth of advanced HVAC equipment included in the purchase, we are able to lower our development costs and accelerate our time to market – a key advantage and core tenet of our development strategy. The development timeline aligns with the demands of a new customer that intends to fill the capacity with new generation Nvidia GPUs.”
The CEO highlighted the company’s efforts to secure cost-effective mortgage financing for the project.
“We believe this will ultimately showcase Bit Digital's ability to cost-effectively finance its data center buildout in a non-dilutive manner,” Tabar said.