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Bit Digital, Inc. has shared an update on its journey into artificial intelligence (AI) services by securing a binding term sheet with Boosteroid Inc., a major player in the cloud gaming industry. This partnership highlights Bit Digital’s strategic direction, which focuses on enhancing its AI capabilities through its existing digital asset mining infrastructure.
Bit Digital and Boosteroid Ink Deal for GPU Servers
According to Bit Digital (Nasdaq: BTBT), the agreement with Boosteroid is a pivotal step forward in the company’s growth plan. The term sheet lays out a plan where Bit Digital will provide graphics processing unit (GPU) servers to Boosteroid, with the initial deployment set to take place over the next two to three months.
The agreement also allows Boosteroid to potentially scale up to 50,000 GPU servers within five years, which could generate revenue exceeding $700 million. This initiative aligns with Bit Digital’s broader goal of integrating AI and high-performance computing (HPC) into its digital asset operations, which include bitcoin (BTC) mining and ethereum (ETH) staking.
In addition to the Boosteroid deal, Bit Digital reported its financial results for the second quarter of fiscal year 2024. The company’s total revenue climbed to $29 million, driven by a mix of high-performance computing (HPC) services and increased BTC mining earnings. The firm also highlighted its commitment to sustainability, noting that 86% of its mining fleet’s energy consumption is from carbon-free sources.
BTBT shares are currently trading at $3.68 each. On Tuesday, the stock surged 21%, has risen 18% over the past five days, but is down 4.34% for the month. Bit Digital attributed much of its success to its HPC services business, particularly following Bitcoin’s fourth halving event. Many BTC miners, including Bit Digital, have found AI services to be a vital addition to their operations as they venture into this rapidly growing sector.