BTC miner Bit Digital acquires Montreal site, new client announced

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BTC miner Bit Digital (NASDAQ: BTBT) has announced the acquisition of a new data center in Montreal, Canada, where it will host AI infrastructure.

Bit Digital acquired the 160,000-square-foot site, previously used as an encapsulation manufacturing facility, for $23.3 million. It intends to develop it into a 5-megawatt Tier-3 data center fitted with the latest cooling technology, including direct-to-chip liquid cooling for enhanced efficiency, the company said in a press release.

The site will be fully powered by hydroelectric power from Hydro-Quebec, one of the world’s largest hydropower producers. Bit Digital expects to complete construction by May this year.

CEO Sam Tabar described the acquisition as “an important step forward in our data center growth plans.” The company aims to have 32MW of high-performance computing (HPC) data centers and 288MW overall across all its operations by the end of the year.

“By leveraging the existing infrastructure, including over CAD $750 thousand worth of advanced HVAC equipment included in the purchase, we are able to lower our development costs and accelerate our time to market – a key advantage and core tenet of our development strategy. The development timeline aligns with the demands of a new customer that intends to fill the capacity with new generation Nvidia GPUs,” Tabar added.

Bit Digital has been venturing into HPC data centers, acquiring Enovum Data Centers in October for $46 million.

In a separate announcement, the company revealed that it had signed an agreement with AI Compute Fund, a division of DNA Holdings, to provide Nvidia H200 GPUs (NASDAQ: NVDA) worth over $20 million. Bit Digital will provide the GPUs starting in February in a deal that runs for the next two years.

“This strategic collaboration underscores our commitment to delivering high-performance computing solutions tailored to our clients’ evolving needs,” Tabar commented.

“This contract is a meaningful step toward achieving our long-term growth objectives. While we now expect to reach our $100MM annualized revenue run-rate goal for our HPC business in early 2025, this timeline reflects a deliberate strategy to prioritize high-quality revenue opportunities and disciplined capital management.”

Bit Digital, which operates BTC mining operations in the U.S., Iceland, and Canada, is among the many BTC miners pivoting to AI. In late 2023, it launched Bit Digital AI, a dedicated AI division that officially started operations in January 2024. Its AI business was generating around $5 million monthly in the latter part of last year.

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