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Bit Digital, a Bitcoin mining firm, plans to leverage its digital assets to acquire more GPUs for expanding its high-performance computing (HPC) business. On Tuesday, the company announced it has finalized an agreement to supply an existing customer with 2,048 additional GPUs from Dell, an authorized OEM of Nvidia. This strategic move comes as bitcoin's fourth <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a> reduced <a href="https://ultramining.com/news/en/bitcoins-rebound-above-30k-boosts-hashprice-a-4-leap-in-24-hours/">hashprice</a> below $50/PH/s, pushing mining firms to diversify and invest in AI capabilities. Following the news, Bit Digital's stock ($BTBT) surged 13% after market open. 
Bit Digital expects the GPUs to be delivered to its host in Iceland by July, with revenue generation starting in August. The new contract will double its <a href="https://ultramining.com/news/en/kaspa-takes-the-lead-in-gpu-mining-sets-sights-on-transforming-pow-landscape/">GPU</a> supply to the customer, bringing the total to 4,096 units. The company projects $92 million in annual revenue from this three-year contract, according to <a href="https://theminermag.com/news/2024-06-25/bit-digital-bitcoin-ethereum-ai-gpu/">TheMinerMag</a>. 
To finance the GPU purchase, Bit Digital will use a mix of cash and digital assets. As of May's end, Bit Digital held 1,038 BTC and 20,508 ETH, valued at $144 million. The total cost of the purchase was not disclosed. 
In Q1, Bit Digital reported $8.1 million in revenue from its GPU segment, with a gross margin of around 60%. The company has entered into a sale-leaseback deal for 1,024 GPUs with a third party to reduce capital expenditure. Additionally, it is exploring debt financing options to fund the purchases. 
The announcement is part of a broader trend in the industry. On the same day, <a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/">Core Scientific</a> announced an AI capacity expansion for CoreWeave, and <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/">Hut 8</a> secured a $150 million investment from CoreWeave’s investor Coatue Management. These moves highlight the growing importance of AI and HPC in the crypto mining sector.

Bit Digital May Sell Digital Assets to Fund GPU Expansion for AI Race

Ultramining_Eng

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