Bit Digital Expands Its Operations with New Data Center in Quebec

Bit Digital Inc (NASDAQ:BTBT) has made a significant move in its expansion strategy by securing a new data center site in Saint-Jérôme, Québec. This is part of a previously disclosed 5MW colocation agreement with Cerebras Systems, a prominent provider of generative AI infrastructure. The newly acquired facility spans 202,000 square feet and is situated on a 7.7-acre property. It is set to undergo retrofitting to Tier 3 standards to ensure high reliability and optimal performance, with development costs projected at approximately C$55 million (US$40 million) and a targeted operational launch by July 2025. Notably, Noble Capital Markets has responded positively to this development, reaffirming their 'Outperform' rating on Bit Digital with a price target of $5.50, significantly above its current trading value of $1.85. Analysts noted that agreements like this typically generate around $2 million in revenue per contracted megawatt. CEO Sam Tabar emphasized the importance of 'speed to market' as a competitive edge in the AI infrastructure industry, highlighting the company's commitment to expanding its operational capabilities and partnerships in this highly lucrative sector. This strategic pivot comes at a time when many public Bitcoin miners are wrestling with volatility in the crypto markets, prompting them to explore alternative and more profitable avenues such as AI data centers. In addition to the Quebec data center, Bit Digital has also announced the acquisition of an industrial building in Madison, North Carolina, for $53.2 million, further diversifying its business model and aligning with the trend of mining firms transitioning to AI and high-performance computing. With the backdrop of ongoing geopolitical tensions affecting global markets, including tariffs on Chinese imports announced by the U.S. government, the investment landscape for both cryptocurrencies and technology infrastructures remains precarious yet full of potential. As Bit Digital continues to navigate this evolving market landscape, it is clear that strategic expansions, such as these data centers, may play a crucial role in its sustainability and growth in the coming years.