Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 387

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 387
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 certain business uses over data centers and similar facilities.
In addition, volcanic eruptions might interrupt the generation of electricity from geothermal energy, as occurred several times in 2023.

In
addition, we may be subject to risks and unanticipated costs associated with obtaining power from various utility companies. Utilities
that serve our data centers may be dependent on, and sensitive to price increases for, a particular type of fuel, including hydroelectric.
In addition, the total cost of delivered electricity could increase as a result of: regulations intended to regulate carbon emissions
and other pollutants, ratepayer surcharges related to recovering the cost of extreme weather events and natural disasters (including
volcanoes in Iceland and floods in North Carolina), geopolitical conflicts, military conflicts, grid modernization charges, as well as
other charges borne by ratepayers. Increases in the cost of power at any of our data centers could put those locations at a competitive
disadvantage relative to data centers that are supplied power at a lower price.

Accordingly,
the energy supply for WhiteFiber’s data centers may be subject to disruption and could become insufficient to support our operations.
WhiteFiber’s financial condition or results of operations may be adversely affected if its WhiteFiber data centers are disrupted
or discontinued due to a curtailment or interruption of the energy supply.

Establishing
data centers in remote areas may adversely affect our ability to retain staff and increase our compensation costs.

If
we establish data centers in areas with lower populations such as Iceland or remote parts of Canada, recruiting and retaining the necessary
staff to operate our locations may pose a challenge. When we encounter a relatively low population, the pool of available employees is
limited. In addition, some employers have offered significantly higher wages in order to fill vacant positions. This may adversely affect
our ability to attract and retain qualified personnel and may increase our employee costs if we have to increase the compensation we
pay in response to the market.

WhiteFiber’s
data centers could be adversely impacted by climate change.

Severe
weather events, such as tornadoes, hurricanes, rain, drought, fire, ice and snowstorms, and high-and low-temperature extremes,
occur in regions in which WhiteFiber operates and maintains infrastructure. WhiteFiber’s principal data centers in Iceland and
Canada are designed to provide year-round cool weather conditions. Nevertheless climate change could change the frequency and severity
of weather events, which may create physical and financial risks to WhiteFiber.