Bit Digital Q1 Earnings Q&A | New WhiteFiber & HPC Updates | HPC & AI Strategy in 2025 | BTBT Stock

Summary

In this interview, Bit Digital's CEO discusses the company's expansion into high-performance computing (HPC) data centers, including the development of Montreal 1, 2, and 3 sites. Montreal 2 will feature advanced cooling technology for AI chips and is expected to grow rapidly by 2026. The CEO also shares insights on the industry's capital markets and the challenges Bitcoin miners face in securing higher valuations, emphasizing the need for structural changes, proven results, and strong partnerships, such as with Cerebras, to drive future growth and market recognition.

Takeaways

• 😀 Montreal 1 is fully operational and leased to a diverse mix of colocation customers.
• 😀 Montreal 2 is being developed with Tier 3 standards, 5 MW initial load, and direct-to-chip liquid cooling for Blackwell chips.
• 😀 The goal for Montreal 2 is to reach 32 MW by the end of 2025, with further expansion planned for 2026.
• 😀 Montreal 3 is under development and will support a 5 MW colocation agreement with Cerebras Systems, pending utility approvals.
• 😀 The direct chip liquid cooling infrastructure for Montreal 3 is being installed, with progress shared via the White Fiber X Twitter account.
• 😀 Bit Digital is excited about its partnership with Cerebras, believing it will be a significant growth opportunity in the coming years.
• 😀 Sam (CEO) expressed skepticism about an immediate rerating of Bitcoin miners to HPC multiples in the stock market.
• 😀 Bitcoin miners need to undergo serious structural changes, such as building Tier 3 facilities and proving legitimacy in the HPC space to gain higher multiples.
• 😀 Corporate restructuring, including proof of concept, a solid team, and established client relationships, is essential for gaining higher market valuation.
• 😀 While revenue is coming in from multiple clients, Sam is not confident that a rerating will happen unless companies make fundamental changes to their operations.
• 😀 Even with contracts in place, tangible delivery of results and revenue is crucial for Bitcoin miners to transition into the HPC space and drive stock rerating.

Q & A

What is the current status of Montreal 1 data center?

Montreal 1 is fully online and leased to a diverse mix of colocation customers, marking a successful operational launch.

What are the key features of Montreal 2, and when is it expected to go online?

Montreal 2 is under development with tier-3 standards, an initial gross load of 5 MW, and direct-to-chip liquid cooling technology for Blackwell chips. It is expected to be online by the third quarter of this year.

What is the long-term plan for Montreal 2 in terms of power capacity?

The plan is to have 32 MW online by the end of this year, with an expectation to more than double that to 64 MW by 2026.

Can you elaborate on Montreal 3's development and its current status?

Montreal 3 is under development with a 5 MW colocation agreement with Cerebras Systems. It will have the potential for future expansion, contingent upon utility approvals.

What challenges has the Montreal 2 development faced, and when is the expected completion?

Montreal 2's expected timeline has shifted due to the timing of mortgage financing, but it is nearly finalized. It is expected to be online by the third quarter.

How important is the partnership with Cerebras Systems for Bit Digital?

The partnership with Cerebras Systems is highly significant for Bit Digital as it marks a move into the HPC data center space, which they believe will be a major growth area for the company.

What role does the direct-to-chip liquid cooling system play in the development of Montreal 2?

The direct-to-chip liquid cooling system is crucial for supporting the Blackwell chips used in the data center, ensuring efficient cooling for high-performance computing.

Why does Sam feel that Bitcoin miners won't see an immediate rerating from the market to HPC multiples?

Sam believes that Bitcoin miners need to demonstrate significant structural changes and prove their capabilities in building tier-3 facilities, having experienced teams, securing clients, and delivering on their promises before being re-rated to HPC data center multiples.

What factors does Sam believe are necessary for a Bitcoin miner to achieve a rerating by the market?

Sam suggests that Bitcoin miners need to show proof of concept, build tier-3 data centers, form experienced teams, and secure paying clients, along with making necessary corporate structural changes.

What does Sam say about the market's perception of Bitcoin miners entering the HPC data center space?

Sam believes the market still views Bitcoin miners as separate from HPC data centers. In his opinion, it will take more than just marketing efforts to change this perception—it requires clear, tangible results and business transformations.