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Bit Digital (BTBT) Stock Experiences Notable Pre-Market Surge

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Bit Digital, Inc. (NASDAQ: BTBT) has observed a significant uptick in its stock value on the US stock exchange today. As of the latest update, the company’s shares have risen by 15.05% in pre-market trading, reaching a price of $13.44.

This substantial increase is primarily attributed to the recent disclosure of its financial results and a strategic agreement within the high-performance computing (HPC) sector.

Bit Digital Shared Impressive Financial Results and Strategic Agreement

For Bit Digital, the second quarter of 2024 was a critical time. The April halving event resulted in a decrease in block rewards; yet, overall income for the corporation more than doubled to $29.0 million from the prior year. The addition of income from its HPC services business, which contributed for the first time in a full quarter, was a major factor in this remarkable development.

One of Bit Digital’s key advantages is still its strong financial sheet, which has $191.9 million in total assets. The organization is in a strong financial position to handle the volatility of the market and make investments in high-return possibilities. Nonetheless, there are still financial difficulties facing the mining industry.

Without a significant improvement in payback periods for mining equipment, it is unlikely that Bit Digital will meet its target of achieving an active hash rate of 6.0 EH/s by the end of 2024. The company has been cautious about expanding its exahash capacity, opting to wait for more favorable post-halving conditions before pursuing substantial growth.

BTBT entered New Agreement with Boosteroid

In addition to its financial achievements, Bit Digital has announced a binding term sheet with Boosteroid Inc., marking a new client for its HPC services. The agreement is contingent upon further due diligence, legal reviews, and internal approvals, with a master service agreement (MSA) expected to be finalized soon.

Under this agreement, Boosteroid is set to make an initial purchase of GPU servers with a service commitment extending over five years. This initial order is projected to generate approximately $13 million in revenue for Bit Digital over the MSA’s term, equating to roughly $2.6 million annually.

Boosteroid will have the option to order additional servers, up to a total of 50,000 units within five years, potentially resulting in over $700 million in revenue, contingent on deployment plans and market conditions.

The initial deployment will feature GPU servers equipped with AMD EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUSTeK Computer Inc. (ASUS) and AMD, with deployment slated to begin within the next two to three months across more than 10 data centers in the U.S. and Europe.

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