NEW
YORK, Dec. 30, 2024 /PRNewswire/ -- Bit Digital,
Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a global
platform for high-performance computing ("HPC") infrastructure and
digital asset production headquartered in New York, announced today that is has acquired
the real estate and building for a build-to-suit 5MW Tier-3 data
center expansion project in Montreal,
Canada. This acquisition is part of Bit Digital's strategy
to expand its HPC data center footprint to 32MW during 2025. This
site also comprises part of Bit Digital's 288MW proprietary
pipeline announced earlier this year.
Bit Digital purchased the site ("MTL2") for CAD $33.5
million (approximately USD $23.3MM assuming a CAD/USD exchange rate of 0.70)
excluding fees. The acquisition closed on December 27, 2024. Bit Digital initially funded
the purchase with cash on hand and is in the process of securing
mortgage financing for both the site acquisition and subsequent
infrastructure capex.
The Company expects to spend approximately CAD $27.6 million (approx. USD $19.3MM) to develop the site to Tier-3 standards
with an initial gross load of 5MW. The site is expected to be
completed and operational by May 2025.
MTL2, a 160,000 square feet site
that was previously used as an encapsulation manufacturing
facility, is located in Pointe-Claire, QC. Bit Digital plans
to retrofit the site with advanced cooling technology, including
direct-to-chip liquid cooling, which enhances energy efficiency and
supports AI and other high-performance workloads with 150kW rack
density. The Company is collaborating with third parties to
implement a heat reject loop to further enhance the sustainability
profile of the datacenter. The facility will be powered by 100%
renewable hydroelectricity provided by Hydro-Quebec. Additionally, the site offers the
potential to expand, enabling scalable growth aligned with market
demand.
Sam Tabar, Bit Digital's CEO, commented: "This site
acquisition marks an important step forward in our data center
growth plans. 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. By leveraging the existing
infrastructure, including over CAD $750
thousand 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.
We are in the process of securing cost-effective mortgage
financing for this project which we intend to announce upon
finalization. We believe this will ultimately showcase Bit
Digital's ability to cost-effectively finance its data
center buildout in a non-dilutive manner."
About Bit Digital
Bit Digital, Inc. is a global platform for high-performance
computing ("HPC") infrastructure and digital asset production
headquartered in New York City.
Our bitcoin mining operations are located in the US,
Canada, and Iceland. For additional information, please
contact ir@bit-digital.com or visit our website at
www.bit-digital.com.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 3.D of our Annual Report on Form 20-F
for the fiscal year ended December 31,
2023 ("Annual Report"). Notwithstanding the fact that Bit
Digital Inc. has not conducted operations in the PRC since
September 30, 2021 we have previously
disclosed under Risk Factors in our Annual Report: "We may be
subject to fines and penalties for any noncompliance with or any
liabilities in our former business in China in a certain period from now on."
Although the statute of limitations for non-compliance by our
former business in the PRC is generally two years and the Company
has been out of the PRC, for more than two years, the Authority may
still find its prior bitcoin mining operations
involved a threat to financial security. In such event, the
two-year period would be extended to five years. If any material
risk was to occur, our business, financial condition or results of
operations would likely suffer. In that event, the value of our
securities could decline and you could lose part or all of your
investment. The risks and uncertainties we describe are not the
only ones facing us. Additional risks not presently known to us or
that we currently deem immaterial may also impair our business
operations. In addition, our past financial performance may not be
a reliable indicator of future performance, and historical trends
should not be used to anticipate results in the future. Future
changes in the network-wide mining difficulty rate or
bitcoin hash rate may also materially affect the
future performance of Bit Digital's production of
bitcoin. Actual operating results will vary depending
on many factors including network difficulty rate, total hash rate
of the network, the operations of our facilities, the status of our
miners, and other factors. See "Safe Harbor Statement" below.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of Bit Digital, Inc., and its
subsidiary companies. All statements, other than statements of
historical fact included herein are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects," or
similar expressions, involving known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that
are filed with the Securities and Exchange Commission and available
on its website at http://www.sec.gov. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
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SOURCE Bit Digital, Inc.