Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 183

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 183
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, we provide cloud infrastructure for highly scalable Graphic Processing Unit (“GPU”)
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 and 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.

28

We may be unable to access sufficient additional
capital needed to grow our business.

We
expect to 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 to incur additional indebtedness, pay dividends