Bit Digital, Inc. (Nasdaq: BTBT) has significantly advanced its artificial intelligence (AI) services by entering into a binding term sheet with Boosteroid Inc., a leading cloud gaming provider. This partnership aligns with Bit Digital’s strategic focus on utilizing its digital asset mining infrastructure to expand into the AI sector.
Under the agreement, Bit Digital will supply graphics processing unit (GPU) servers to Boosteroid, with an initial deployment expected within the next two to three months. The deal includes the option for Boosteroid to scale up to 50,000 GPU servers over five years, potentially generating more than $700 million in revenue for Bit Digital.
These GPU servers, featuring AMD EPYC 4th Gen CPUs and RX7900XT GPUs customized by ASUSTeK Computer Inc. (ASUS) and AMD, will be deployed across more than 10 data centers in the U.S. and Europe to bolster Boosteroid’s cloud gaming services.
This partnership coincides with Bit Digital’s financial results for the second quarter of fiscal year 2024, where the company reported $29 million in total revenue. This growth was driven by a combination of high-performance computing (HPC) services and increased earnings from Bitcoin mining. Bit Digital also highlighted its commitment to sustainability, with 86% of its mining operations powered by carbon-free energy sources.
Following the announcement, Bit Digital’s shares saw a 21% surge, trading at $3.68, although the stock has decreased by 4.34% over the month. The company credits much of its recent success to its HPC services, particularly after Bitcoin’s fourth halving event, which has led many Bitcoin miners to diversify into AI services.
Sam Tabar, CEO of Bit Digital, expressed optimism about the new partnership, stating, “We are excited to expand our HPC business and provide mission-critical computing solutions to Boosteroid, a customer in a new end-market for our HPC offerings. This collaboration lays the foundation for a long-term and growing partnership.”
Ivan Shvaichenko, Founder and President of Boosteroid, added that the collaboration enhances their existing partnerships with AMD and ASUS, furthering their goal of becoming a leader in the global cloud gaming market.
