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Bit Digital is well on it’s way to reach $100 mm annualized revenue run-rate from AI computing.
This morning’s announcement on the deployment of an additional 2,048 GPUs is expected to push AI computing revenue to $92 million on an annualized basis.
The servers will be deployed at Bit Digital’s data center partner in Iceland.
Bit Digital is putting its $163 mm of digital assets and cash to good use. With a current active hash rate of “just” 2.8 EH/s, I would not be surprised if AI revenues exceeded BTC mining revenues in 2024.
While the company is currently unleveraged, management is reportedly exploring various forms of debt. The first step was a sale-leaseback structure to finance the purchase of the initial 1,024 GPUs.
It’s noteworthy that Bit Digital is pursuing an asset light model partnering with data center operators, rather than building and operating their own facilities. Counterparty risk is effectively managed across 6 hosting partners including Digihost, Coinmint, Greenblocks, Bitdeer, Soluna and Blockbreaker.
As the competition for data center capacity is heating up, it will be interesting to see if Bit Digital can grow its footprint using the hosting model or whether the company will have to acquire its own data centers before too long.
Today’s news saw Bit Digital’s stock rally 34%.
Year-to-date performance of Bit Digital is -22% as the introduction of the Bitcoin ETF has drained liquidity from the market while the recent Bitcoin Halving has left many investors weary of the sector.
Perhaps Bit Digital ought to be viewed as an AI play much rather than a BTC miner.
Watch this space.