Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 397

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 397
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 changes may occur in WhiteFiber’s cost structure, management, financing and business operations as a result of operating
as a company separate from Bit Digital.

WhiteFiber
or Bit Digital may fail to perform under the Transition Services Agreement or WhiteFiber may fail to have necessary systems and services
in place when the transition services agreement expires.

On
July 30, 2025, prior to the consummation of its initial public offering, WhiteFiber and Bit Digital entered into the Transition
Services Agreement pursuant to which Bit Digital will provide certain services to WhiteFiber, on a transitional basis. The Transition
Services Agreement provides for the performance of certain services by Bit Digital for the benefit of WhiteFiber, or in some cases certain
services provided by WhiteFiber for the benefit of Bit Digital, for a limited period of time after its initial public offering. WhiteFiber
will rely on Bit Digital to satisfy its obligations under this agreement. If Bit Digital is unable to satisfy its obligations under this
agreement, WhiteFiber could incur operational difficulties or losses. If WhiteFiber does not have agreements with other providers of
these services once certain transaction agreements expire or terminate, WhiteFiber may not be able to operate its business effectively,
which may have a material adverse effect on its financial position, results of operations and cash flows.

WhiteFiber’s
inability to resolve favorably any disputes that arise between WhiteFiber and Bit Digital with respect to their past and ongoing relationships
including potential conflicts of interests among management may adversely affect WhiteFiber’s operating results.

Certain
key management and directors of both Bit Digital and WhiteFiber hold the same or similar positions in both companies. Those positions
and their ownership of Bit Digital securities could create, or appear to create, potential conflicts of interest when WhiteFiber’s
management and directors and Bit Digital’s management and directors face decisions that could have different implications for Bit
Digital and WhiteFiber. Disputes may arise between WhiteFiber and Bit Digital in a number of areas relating to the various transaction
agreements, including:

    ●
    labor, tax, employee benefit,
    indemnification and other matters arising from WhiteFiber’s separation from Bit Digital;

    ●
    employee retention and
    recruiting;

    ●
    business combinations involving
    WhiteFiber; and

    ●
    the nature, quality and
    pricing of services that WhiteFiber and Bit Digital have agreed to provide each other.

WhiteF