Bit Digital Stock Is Rising Tuesday: What's Driving The Action?

Bit Digital Inc BTBT shares are trading higher Tuesday. The company announced that it acquired a datacenter company to vertically integrate its high-performance computing (HPC) operations.

What Happened: Bit Digital announced it acquired HPC datacenter company Enovum Data Centers for a total consideration of approximately CAD$62.8 million ($46 million). The acquisition was completed on a debt-free, cash-free basis, and closed on Oct. 11.

Bit Digital said the addition of Enovum vertically integrates its HPC business so that it can capture additional margin from HPC customers, versus hosting them with third party datacenters. It also enhances Bit Digital’s competitive positioning.

“This transaction is the culmination of many months of due diligence and negotiation. Vertical integration on the HPC side has been a priority for Bit Digital and we believe we were able to achieve this goal at an attractive price,” said Sam Tabar, CEO of Bit Digital.

“One of our key criteria for acquiring an HPC site was proximity to a major metropolitan area. The existing site in Montreal and near-term expansions sites are all located in Tier-1 cities. We continue to see major value in having datacenter assets adjacent to highly populous areas as they present the most value for inference models where latency is a primary concern.”

Immediate term plans include bringing approximately 8MW online by the end of the second quarter of 2025. Bit Digital noted that it’s tentatively planning to bring an additional 20MW online by the end of 2025. 

Check This Out: Bitcoin Spot ETFs Saw $555.8M Net Inflows On ‘Monster’ Monday

Bit Digital releases mining metrics on a monthly basis. The company recently announced it mined 51.5 Bitcoin BTC/USD in September, down 3.6% from August. Bit Digital noted that its active hash rate was approximately 2.43 EH/s as of Sept. 30.

BTBT Price Action: Bit Digital shares were up 5.32% at $3.46 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.