Bit Digital's WhiteFiber acquires North Carolina site for flagship AI data center campus

Bit Digital's WhiteFiber subsidiary acquired a 96-acre industrial property in Madison, North Carolina, for $45 million to develop a flagship AI data center campus. The nearly 1 million square foot facility has an immediate 99 MW power capacity agreement with Duke Energy, with 24 MW expected by September 1 and potential expansion to 200 MW. Bit Digital funded the purchase with cash and intends to pursue commercial mortgage financing as development progresses, aiming to complete the first phase by year-end and benefit from North Carolina's data center tax exemptions.

Analysis

Bit Digital (NASDAQ:BTBT), through its wholly-owned subsidiary WhiteFiber, has made a significant strategic move by acquiring a 96-acre industrial property in Madison, North Carolina, for $45 million, intending to retrofit the nearly 1 million square foot facility into a flagship AI data center campus. This development is supported by an immediate 99 megawatt (MW) power capacity agreement with Duke Energy, with 24 MW anticipated to be delivered by September 1, and the first phase of construction slated for completion and operational status by year-end. The site's potential for expansion up to 200 MW, subject to future agreements and regulatory approvals, positions Bit Digital to capitalize on the accelerating demand for AI infrastructure, as highlighted by CEO Sam Tabar. The strategic location within the Piedmont Triad, an emerging hub for hyperscale data centers and AI, coupled with its qualification for significant state sales and use tax exemptions, enhances the project's financial viability. The acquisition was funded with cash on hand, sourced via Bit Digital’s at-the-market equity program, with intentions to secure commercial mortgage financing for ongoing development. Early commercial interest is indicated by a non-binding letter of intent with one potential high-performance computing (HPC) tenant and active discussions with others, suggesting market validation for the new facility.

Key Decisions for Investors

• Investors should evaluate Bit Digital's diversification into AI data centers as a significant growth catalyst, given the substantial power capacity secured and the strong secular demand for AI infrastructure.
• Monitor the company's execution on the Q3 2025 24 MW power delivery and year-end operational targets for the first phase, as well as its ability to convert letters of intent into binding lease agreements, which will be critical for revenue generation.
• Assess the financing strategy for the campus development, particularly the terms of future commercial mortgage financing and any potential further reliance on equity markets, in relation to project timelines and capital expenditure requirements.
• Consider the long-term value creation potential stemming from the site's scalability to 200 MW and the tax incentives, balanced against the execution risks inherent in large-scale data center development.