Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 267

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 267
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 customers
range from 12 to 60 months. In our cloud services business, we provide cloud infrastructure for highly scalable Graphic Processing
Units (“GPUs”) accelerated applications, or GPU clusters, to our customers under contracts spanning from month to month to
36 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
face intense competition in the data centers operations and may not be able to compete with other companies. If we do not continue to
innovate in the design and management of data centers in order to offer innovative solutions to store, process and manage digital information,
including artificial intelligence (“AI”) and machine learning (“ML”) applications, to our customers and partners,
we may not remain competitive, which could harm our business, financial condition, data centers and operating results.

We
may not be able to compete successfully against present or future competitors. We do not have the capital resources to compete with larger
providers of similar data centers at this time. Our data centers business environment is rapidly evolving and intensely competitive,
and it faces frequent introductions of rival solutions and