Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 37

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 37
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 colocation costs by entering
into long-term contracts at each site. In our data center services, our contracts with its 14 customers range from month to month to 60
months. As these are new services in the industry, the value and longevity of the GPUs remain uncertain in this rapidly evolving market.
Given that we have only a limited history of operating a colocation data center, the long-term profitability of these contracts cannot
be presently determined. If we are unable to successfully implement our development plan or to increase our generation of revenue, we
will not remain profitable in the future.

We
intend to continue scaling our company to increase our customer base and implement initiatives, including new business lines and global
expansion. These efforts may prove more expensive than we currently anticipate. We may be unable to secure the required financing which
may not result in increased revenue or profitability in the short term or at all. We will also incur increased compliance costs associated
with growth, expanding our customer base, and being a public company. Our efforts to grow our business may be costlier than we expect,
or the revenue growth rate may be slower than we expect. As we pivot towards new markets such as cloud services and colocation data center
operations, we realize that our limited experience in these areas may impact our ability to accurately assess our prospects. The likelihood
of our success must be considered in light of the expenses, difficulties, complications, problems and delays frequently encountered in
connection with the expansion of a business, operating a business in a competitive industry, and the continued development of expanding
our customer base. There can be no assurance that we will operate profitably in the future.

We may be unable to access sufficient additional capital equity and debt financing needed to grow our business.

We
will need to raise substantial additional capital to expand our data center operations, pursue our growth strategies and to respond to
competitive pressures or unanticipated working capital requirements. However, market conditions may limit our ability to raise funds in
a timely manner, in sufficient quantities, or on terms acceptable to us, if at all, which could impair our growth and adversely affect
our existing operations. If we raise additional equity financing, our shareholders may experience significant dilution of their ownership
interests, and the per share value of our Ordinary Shares could decline. Furthermore, if we engage in debt financing, the holders of debt
would have priority over the holders of our Ordinary Shares on order of payment preference. We may be required to accept terms that restrict
our ability