Bit Digital Inc (NASDAQ:BTBT)’s announcement that it has secured the rights to a new data center site in Saint-Jérôme, Québec, in support of its previously disclosed 5MW colocation agreement with generative AI infrastructure provider Cerebras Systems has been welcomed as a positive development by analysts at Noble Capital Markets.
Bit Digital has secured a 202,000-square-foot facility on 7.7 acres under a 20-year lease-to-own deal with a fixed-price purchase option available within 12 months.
The site has future expansion potential pending utility approvals. It is being upgraded to Tier 3 standards, with development costs expected to reach C$55 million, and a targeted operational launch in July 2025.
“To refresh investors, Cerebras, manufacturer of the fastest inference LLM processor in the world, is in the midst of launching six new data center sites in North America, with Bit Digital chosen to be the partner for its first Canadian data center,” analysts highlighted.
“While revenue expectations have not been released, typically, these types of agreements generate about $2 million per contracted MW.”
Noble’s analysts repeated their ‘Outperform’ rating on Bit Digital with a $5.50 price target. Shares traded hands at $1.85 at the time of writing.
“We believe the company continues to be valued as a basic BTC miner rather than the digital infrastructure provider the company has morphed into,” they wrote. “We view the Cerebras deal as further confirmation of Bit Digital's move up the digital value chain.”