Bit Digital, Inc. (Nasdaq: BTBT), a leader in sustainable digital asset and artificial intelligence (AI) infrastructure, has announced a major expansion of its AI services by signing a $700 million agreement with Boosteroid Inc., a prominent cloud gaming provider. This partnership is a strategic move for Bit Digital, aimed at enhancing its AI capabilities through its existing digital asset mining operations, which include Bitcoin (BTC) mining and Ethereum (ETH) staking.
According to the terms of the agreement, Bit Digital will supply Boosteroid with graphics processing unit (GPU) servers, with initial deployments expected to begin within the next two to three months. The agreement allows Boosteroid the option to scale up to 50,000 GPU servers over five years, presenting Bit Digital with a substantial revenue opportunity exceeding $700 million.
The GPU servers will utilize AMD EPYC 4th Gen CPUs and RX7900XT GPUs, tailored specifically for Boosteroid’s platform by ASUSTeK Computer Inc. (ASUS) and AMD. The deployment will span over 10 data centers across the United States and Europe.
Alongside the Boosteroid partnership, Bit Digital also reported its financial results for the second quarter of fiscal year 2024, highlighting total revenue of $29 million. This revenue was driven by high-performance computing (HPC) services and an increase in BTC mining earnings. The company also emphasized its commitment to sustainability, noting that 86% of its mining fleet’s energy consumption comes from carbon-free sources.
Sam Tabar, CEO of Bit Digital, expressed enthusiasm for the company’s expansion into the HPC business, stating, “We are excited to expand our HPC business and provide mission-critical computing solutions to Boosteroid. This partnership marks a significant step into a new end-market for our HPC offerings, and we are committed to delivering exceptional service quality and execution.”
Ivan Shvaichenko, Founder and President of Boosteroid, also commented on the partnership, saying, “This collaboration enhances our existing partnerships with AMD and ASUS, creating a powerful synergy that will propel us toward our goal of becoming the global leader in cloud gaming.”
Bit Digital’s stock, currently trading at $3.68, has seen a 21% surge on Tuesday and an 18% increase over the past five days, although it is down 4.34% for the month. The company attributes much of its success to its HPC services, particularly following Bitcoin’s fourth halving event. The integration of AI services has become increasingly vital for BTC miners like Bit Digital as they expand into this rapidly growing sector.
The agreement with Boosteroid is a significant milestone in Bit Digital’s strategy to become a leading provider of AI and HPC services. Leveraging its existing digital asset mining infrastructure and partnerships with industry leaders like AMD and ASUS, Bit Digital is well-positioned to meet the rising demand for high-performance computing solutions in the cloud gaming and AI markets.
