Bit Digital, Inc Q4 FY2024 earnings call

• 2024 was a strong year with revenues growing 141%, adjusted EBITDA reaching $73 million, driven by HPC business growth.
• Enovum acquisition vertically integrated data center operations and added a strong customer base.
• Launched WhiteFiber HPC platform, with cloud services becoming the largest business in Q4 2024.
• Colocation services secured a major deal with Cerebras, validating their colocation strategy.
• Bitcoin mining focused on optimizing fleet efficiency and reducing costs, with active efforts to refresh the mining fleet at new hosting sites.

Cloud Services

• In Q4 2024, cloud services generated $13 million in revenue, contributing 50% of total revenue and 64% of gross profit.
• Run rate is approximately $72 million later this month with the H200 contract from DNA Fund.
• $15 million in ARR expected to start at the end of June with 512 B200 GPUs for an anchor customer.
• Iceland cluster with 512 D200 GPUs expected to go live in April, potentially generating ~$25 million in additional ARR.

Colocation Services

• Acquired Enovum, now with 14 active customers.
• Montreal 2 is a 5-megawatt tier-three data center in Montreal, expected to go live mid-2025, with a retrofit cost of ~$19 million.
• Multi-year colocation agreement with Cerebras for 5 megawatts of customized high-density colocation capacity, commencing mid-2025.
• Development pipeline totals 510 megawatts, including a US site under LOI that could be transformative.

Bitcoin Mining

• Accounted for 54% of revenue in 2024, down from 98% in 2023.
• Active mining fleet is ~1.6 exahash with an efficiency of ~25-26 joules per terahash.
• Exited claimant facilities, secured 30 megawatts of new hosting capacity (19 megawatts with Core Scientific, 11 megawatts with Luna).

• Cloud services run rate to be ~$72 million later this month with the H200 contract.
• $15 million in ARR expected from 512 B200 GPUs starting end of June.
• Iceland cluster with 512 D200 GPUs expected to go live in April, potentially generating ~$25 million in additional ARR.
• Montreal 2 data center expected to go live mid-2025.
• Cerebras colocation contract to commence mid-2025.
• Bitcoin mining focused on maintaining a cost-efficient and optimized fleet.

• Tariff wars impacting data center build costs, as critical components are imported and new tariffs could increase build expenses.
• Market perception issues where the stock trades like a pure-play Bitcoin miner despite the significant HPC business focus.

Q: What is the run rate and ARR for cloud services?

A: The cloud services run rate is approximately $72 million later this month with the H200 contract. There's $15 million in ARR expected to start at the end of June, and the Iceland cluster could generate ~$25 million in additional ARR once contracted.

Q: What are the details of the colocation agreement with Cerebras?

A: Cerebras has a multi-year colocation agreement for 5 megawatts of customized high-density colocation capacity, commencing mid-2025.

Q: How is Bitcoin mining being optimized?

A: The active mining fleet is around 1.6 exahash with an efficiency of ~25-26 joules per terahash. Exited claimant facilities, secured new hosting capacity, and is refreshing the fleet with more efficient miners.

Q: What are the financing plans for growth?

A: Pursuing non-dilutive financing options like commercial mortgage financing for data centers and exploring vendor financing/leasing for GPUs. The team has an attractive term sheet for data center financing and is avoiding equity issuance at current valuations.