Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 386

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 386
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 effect on the trading price of our Ordinary Shares, which would harm our investors.

76

Our
purchase orders with hardware manufacturers include extended delivery schedules.

We
rely on third parties to timely obtain an adequate delivery of hardware. Our purchase orders with hardware manufacturers include extended
delivery schedules spanning several months before the hardware is delivered to our facilities. These fluctuations in delivery timelines
necessitate careful planning and advanced purchasing strategies to ensure we can acquire hardware well before their anticipated deployment.
Failure to adequately plan for such fluctuations could have a material adverse effect on the Company’s business, prospects, results
of operations and financial condition.

A
curtailment or disruption in energy supply in Iceland, Canada or the U.S. due to regulations and policies implemented by their respective
governments, which prioritize energy supply, may cause a substantial disruption or discontinuance of WhiteFiber’s data center operations
based in Iceland, Canada or prospectively in the U.S., and therefore impair WhiteFiber’s financial condition or results of operations.

Through
WhiteFiber Iceland ehf, the Company established and has been providing cloud services since November 2023, developing a fleet of
554 servers at a third-party data center located in Northern Iceland. Through WhiteFiber’s subsidiary, Enovum, which was acquired
in October 2024, we have been operating our data center located in Montreal Canada (MTL-1), and commenced operations in the in the
fourth quarter of 2025 at MTL-3. In May 2025, we purchased a former industrial manufacturing building and land outside of Greensboro,
North Carolina which we expect to be operational in the first quarter of 2026.

In
order to maintain its data center operations, WhiteFiber and its landlord in Iceland and in Montreal will need to acquire sufficient
supplies of electricity generated by hydroelectric, geothermal energy and electricity. In addition, WhiteFiber’s data centers need
to also maintain reliable and adequate infrastructure and cooling systems to ensure optimal performance.

Currently,
Icelandic and Canadian-based data centers and similar facilities, including the ones contracted with the Company, may face significant
risks of energy disruption, curtailment or discontinuance due to low water levels. Water reservoirs are utilized by hydropower plants,
which provide hydro-generated energy in the country. In the event of a water shortage, and therefore a shortage of hydro-generated energy,
the prioritization framework for Icelandic energy favors residential and