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NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a global provider of high-performance computing infrastructure showing impressive revenue growth of 139% over the last twelve months, has announced the acquisition of a new data center site in Saint-Jérôme, Québec, to support its partnership with AI infrastructure leader Cerebras Systems. According to InvestingPro analysis, the company maintains a strong financial position with a healthy current ratio of 5.39 and minimal debt-to-equity of just 0.03.
The newly secured MTL-3 site encompasses about 202,000 square feet on 7.7 acres and is currently under development. It is intended to support the 5MW colocation agreement with Cerebras that Bit Digital announced in February 2025. The facility is designed for scalability, with potential expansion contingent on utility approvals. While the stock currently trades near its 52-week low of $1.69, analysis suggests the company may be undervalued based on InvestingPro's comprehensive Fair Value assessment.
Bit Digital has structured the transaction as a lease-to-own agreement, featuring a 20-year lease with two 5-year extension options and a fixed-price purchase option available within the first 12 months.
The data center, part of Bit Digital's WhiteFiber high-performance computing platform, is being upgraded to Tier 3 standards. The project's development costs are projected to be around CAD $55 million (approximately $40 million USD). The targeted operational date for the facility is July 2025.
Sam Tabar, CEO of Bit Digital, highlighted the importance of the new site, stating, "This milestone represents continued momentum in our strategy to deliver purpose-built AI infrastructure at scale." He emphasized the company's commitment to meeting the rapidly growing demands of the AI sector and the significance of the Montréal region as an emerging hub for AI innovation.
Cerebras has agreed to a five-year colocation deal for 5MW of custom infrastructure and holds a right of first refusal for any additional capacity at the MTL-3 site.
Investors are cautioned that investing in Bit Digital's securities carries risks, with InvestingPro data showing significant stock price volatility and a beta of 6.07. The company advises potential investors to consider the risk factors outlined in its Annual Report on Form 10-K for the year ended December 31, 2024. These include potential fines and penalties related to the company's former operations in China, despite having ceased operations there as of September 30, 2021. For deeper insights into Bit Digital's financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The information in this article is based on a press release statement from Bit Digital, Inc.
In other recent news, Bit Digital Inc. reported its fourth-quarter earnings for 2024, exceeding market expectations with an earnings per share of $0.11 against the forecasted -$0.04. The company also reported revenue of $26.1 million, surpassing the expected $25.82 million. Additionally, Bit Digital saw a substantial 141% increase in revenue for the year, reaching $108 million, with cloud services generating $45.7 million in its first operational year. The company's Bitcoin mining revenue rose by 32% year-over-year to $58.6 million, contributing significantly to its overall performance.
In a strategic move, Bit Digital's subsidiary WhiteFiber has partnered with Shadeform to offer on-demand access to NVIDIA B200 GPUs, starting in April, expanding its AI infrastructure capabilities. This partnership aims to provide developers and organizations with advanced AI infrastructure across over 100 regions. Analyst firm H.C. Wainwright maintained its Buy rating for Bit Digital, setting a $7.00 price target, citing the company's successful transition to high-performance computing as a key growth catalyst. The firm's analyst highlighted Bit Digital's transformation and expansion of its enterprise client base from one to more than 20 within a year.
These developments reflect Bit Digital's strategic initiatives to diversify its revenue streams and strengthen its presence in the high-performance computing market. The company has also expanded its data center capacity and pursued strategic partnerships to enhance its infrastructure and service offerings.
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