Bit Digital acquires Enovum Dara Centers for $46M

Bit Digital announced that it has acquired Enovum Data Centers, an owner, operator, and developer of high-performance computing datacenters, for a total consideration of approximately $46M. This transaction vertically integrates Bit Digital’s HPC operations with an existing, fully operational and fully leased Tier 3 datacenter in a major city; provides a strong diversity of existing and prospective colocation customers; delivers a strong pipeline of expansion site opportunities and an experienced team to lead the development processes; and enables Bit Digital to offer new service offerings such as colocation and on-demand computing to complement its existing GPU offerings. The acquisition was completed on a debt-free, cash-free basis, with a normalized level of working capital acquired, funded by approximately C$56M of cash and approximately 1.62M share equivalents issued solely to key management who rolled-over a significant portion of their existing ownership in Enovum. The transaction closed on October 11. Enovum has a proprietary development pipeline of 288 MW, including 93MW that are currently under LOI with respective landlords. Bit Digital has engaged an investment banking firm to pursue debt financing alternatives to expand Bit Digital’s capital resources to fund both Enovum’s expansion capex, as well as procurement of GPU servers for Bit Digital’s existing cloud business. Bit Digital will retain key employees from Enovum as part of its purchase agreement to ensure operational continuity of the existing site and development of the expansion pipeline. Advisors: B. Riley Securities is acting as exclusive financial advisor to Bit Digital, and Davies Ward Phillips & Vineberg LLP and White & Case are acting as legal advisors.