Bit Digital Inc (NASDAQ:BTBT) announced that it has signed a Master Services Agreement with a new client, the AI Compute Fund managed by DNA Holdings Venture Inc.
The agreement includes the provision of 576 Nvidia H200 GPUs over a two-year term, representing a potential revenue of approximately $20.2 million.
Operations under this contract are expected to begin in February 2025.
The deal, which builds on a term sheet disclosed in November, will see Bit Digital supplying 72 H200 servers (576 GPUs) to the customer.
The GPUs required for this contract are currently on order and will be delivered to a third-party data center in Iceland.
Earlier in December, Bit Digital placed a $30 million purchase order for 130 H200 servers, which will also support additional customer agreements.
“This strategic collaboration underscores our commitment to delivering high-performance computing solutions tailored to our clients' evolving needs,” Bit Digital CEO Sam Tabar said.
Tabar described the contract as “a meaningful step toward achieving our long-term growth objectives.”
“While we now expect to reach our $100 million annualized revenue run-rate goal for our HPC business in early 2025, this timeline reflects a deliberate strategy to prioritize high-quality revenue opportunities and disciplined capital management,” the CEO said.
“As we navigate a significant chip upgrade cycle, we have been selective about the deals we pursue, focusing on the right customers, favorable terms, and pricing. This approach enables us to mitigate residual value risk while maintaining the financial flexibility needed to support our data center expansion and next-generation GPU investments.”