Bit Digital Signs New HPC Client with Order of 300 GPUs

Bitcoin mining and high-performance computing (HPC) service provider Bit Digital (NASDAQ: BTBT) has secured a new customer, cloud gaming company Boosteroid, with an initial order for the deployment of 300 GPUs.

In a press release on Monday, Bit Digital announced the finalization of a master service agreement with Boosteroid, following the binding term sheet agreed upon in August.

“The initial order of 300 GPUs is projected to generate approximately $4.6 million in revenue for Bit Digital over a five-year term, translating to about $0.9 million annually,” the company stated, adding that it expects these GPUs to start generating revenue by the end of the month. However, this revenue projection is a reduction from the $2.6 million per year estimated in August during the announcement of the binding term sheet.

For this initial purchase, Bit Digital will include GPU servers featuring AMD EPYC 4th Gen CPUs and RX7900XT GPUs, specifically customized by ASUSTeK Computer Inc. and AMD for Boosteroid. “Deployment is planned across a network of over 10 data centers in the U.S. and Europe,” Bit Digital stated in August.

The service agreement also allows Boosteroid to expand in increments of 100 servers, up to a maximum of 50,000 servers. Bit Digital touts potential revenue of up to $700 million over the next five years, contingent upon deployment plans and market conditions.

Bit Digital is one of the crypto mining companies that transitioned GPU mining to HPC services following the activation of Ethereum 2.0 in September 2022. This made GPUs and the proof-of-work mechanism obsolete for Ethereum, the world’s second-largest blockchain network.

During the second quarter of this year, Bit Digital’s HPC segment contributed 43% of the company’s total revenues, as it decelerated expansion in its Bitcoin mining capacity.