Bit Digital and Blockfusion Announce 35 Megawatt Strategic Partnership

NEW YORK, Sept. 7, 2021 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital“) and Blockfusion USA, Inc. (“Blockfusion“) (collectively, the “Companies”) are happy to announce that the Companies have entered right into a strategic co-mining settlement (the “Agreement”). Pursuant to the phrases of the Agreement, Blockfusion will present sure premises and providers to Bit Digital for the operation of a 35 MW bitcoin mining system for a time period of two years, with automated one-year renewals. This partnership is anticipated to facilitate a rise in Bit Digital’s hashrate of as much as roughly 1.2 Exahash (“EH”). Bit Digital expects to finish the primary (of 4) phases of miner tools deliveries for set up on or about September 15, 2021. 

Consistent with the Companies’ management in sustainability, the power utilized by the mining system is anticipated to be generated primarily from zero carbon emission sources.

During the time period and for twelve (12) months thereafter, Bit Digital shall have a proper of first refusal (“ROFR”) to match any bona fide supply from a 3rd social gathering to finance or purchase securities and/or belongings of Blockfusion (every, a “Strategic Transaction”), and to obtain a credit score or refund in reference to such Strategic Transaction, as additional mentioned beneath.

Pursuant to the Agreement, Bit Digital has superior Blockfusion $3,750,000, or a median of roughly $107,000 per megawatt throughout your entire 35MW Agreement (calculated as $3,750,000 divided by 35), in respect of precise bona fide bills incurred within the growth of sure infrastructure associated to the mining system (the “Infrastructure Investment”). This Infrastructure Investment is creditable or refundable to Bit Digital as follows:

Bit Digital shall be credited the quantity of the Infrastructure Investment within the buy worth of any accomplished Strategic Transaction. If the events don’t enter into definitive agreements in respect of a Strategic Transaction, then, inside twelve (12) months following the termination of the Agreement, Blockfusion shall refund the Infrastructure Investment. 

Bryan Bullett, Bit Digital’s CEO, commented: “This strategic partnership with Blockfusion represents the newest instance of our artistic, value-oriented strategy to sourcing clear energy, with a veteran accomplice with shared values, structured on engaging phrases. In specific, the ROFR provisions of our Agreement present Bit Digital optionality to amass pursuits in, or the whole thing of, Blockfusion, whereas receiving credit score for our Infrastructure Investment. Absent a Strategic Transaction, Bit Digital will obtain a refund of its funding. In our opinion, such a deal could be tough to copy in at this time’s tight marketplace for energy and internet hosting in North America.” 

Samir Tabar, Bit Digital’s Chief Strategy Officer, added: “Our Agreement with Blockfusion unfolded naturally, as principals of our two corporations take pleasure in a longstanding relationship, and there is a excessive diploma of belief and mutual respect. We are excited to work collectively, and concerning the potential for a future strategic transaction, pursuant to the ROFR provisions of our Agreement.” 

Alex Martini, Blockfusion’s CEO, said: “We are excited to be engaged on the primary part of our partnership with Bit Digital, a number one mining firm aligned with our objectives of utilizing renewable power for bitcoin mining.”

About Bit Digital, Inc.

Bit Digital, Inc. is a sustainability-focused bitcoin mining firm with one of many largest at the moment owned fleets amongst US-listed bitcoin miners at over 1.9 EH. Headquartered in New York with workplaces in Miami Beach, Bit Digital’s mining operations are positioned in the United States and Canada.

About Blockfusion USA, Inc.

Blockfusion USA, Inc., based in 2019 and privately held, is a sustainability-focused proprietor and operator of one of many largest crypto mining services within the northeastern United States, powered primarily by carbon free power.

Investor Notice

Investing in our securities entails a excessive diploma of threat. Before investing choice, you need to fastidiously take into account the dangers, uncertainties and forward-looking statements described beneath “Risk Factors” in Item 3.D of our most up-to-date Annual Report on Form 20-F for the fiscal yr ended December 31, 2020. If any materials threat was to happen, our enterprise, monetary situation or outcomes of operations would possible endure. In that occasion, the worth of our securities may decline and you would lose half or all your funding. The dangers and uncertainties we describe aren’t the one ones dealing with us. Additional dangers not presently recognized to us or that we at the moment deem immaterial may additionally impair our enterprise operations. In addition, our previous monetary efficiency is probably not a dependable indicator of future efficiency, and historic traits shouldn’t be used to anticipate outcomes sooner or later. There may be no assurance that miner shipments will probably be delivered on the anticipated supply date, as a result of potential logistic delays or different components past our management. Future modifications within the network-wide mining problem fee or bitcoin hashrate, in addition to different components past our management, may additionally materially have an effect on the long run efficiency of Bit Digital’s manufacturing of bitcoin. Additionally, all discussions of economic metrics assume mining problem charges as of August 2021. See “Safe Harbor Statement” beneath.

Safe Harbor Statement

This press launch might comprise sure “forward-looking statements” referring to the enterprise of Bit Digital, Inc., and its subsidiary corporations. All statements, aside from statements of historic truth included herein are “forward-looking statements.” These forward-looking statements are sometimes recognized by means of forward-looking terminology similar to “believes,” “expects,” or related expressions, involving recognized and unknown dangers and uncertainties. Forward-looking statements on this press launch embrace however aren’t restricted to details about hashrate enlargement, potential for the Bit Digital’s progress, potential for future utilization of renewable or carbon-free energy sources, and the enterprise objectives and aims of Bit Digital. Although Bit Digital believes that the expectations mirrored in these forward-looking statements are cheap, they do contain assumptions, dangers and uncertainties, and these expectations might show to be incorrect. Investors mustn’t place undue reliance on these forward-looking statements, which communicate solely as of the date of this press launch. The Company’s precise outcomes may differ materially from these anticipated in these forward-looking statements on account of quite a lot of components, together with these mentioned in Bit Digital’s periodic reviews which can be filed with the Securities and Exchange Commission and obtainable on its web site at http://www.sec.gov. All forward-looking statements attributable to Bit Digital or individuals appearing on its behalf are expressly certified of their entirety by these components. Other than as required beneath the securities legal guidelines, Bit Digital doesn’t assume an obligation to replace these forward-looking statements.

SOURCE Bit Digital, Inc.

Related Links

http://www.bit-digital.com

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