Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 185

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 185
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 our business, prospects or financial condition.

Our business depends upon the demand for
data centers.

We
are in the business of owning, acquiring, developing and operating data centers. A reduction in the demand for data center space,
power or connectivity would have a greater adverse effect on our business and financial condition than if our assets were devoted to
a less specialized use. Our substantial development activities make us particularly susceptible to general economic slowdowns, as
well as adverse developments in the data center, Internet, AI and data communications and broader technology industries. Our
colocation customers who are crypto miners are subject to the risks relating to their crypto mining business. It is not possible for
us to predict the future level of demand for our services that will be generated by these customers or the future demand for the
products and services of these customers. Any such slowdown or adverse development could lead to reduced corporate IT spending or
reduced demand for data center space. Changes in industry practice or in technology could reduce demand for the physical data center
space we provide. In addition, our customers may choose to develop new data centers or expand their own existing data centers or
consolidate into data centers that we do not own or operate, which could reduce demand for our newly developed data centers or
result in the loss of one or more key customers. If any of our key customers were to do so, it could result in a loss of business to
us or put pressure on our pricing. Mergers or consolidations of technology companies could reduce further the number of our
customers and potential customers and make us more dependent on a more limited number of customers. If our customers merge with or
are acquired by other entities that are not our customers, they may discontinue or reduce the use of our data centers in the future.
Our financial condition, results of operations, cash flow, cash available for distribution and ability to satisfy our debt service
obligations could be materially adversely affected as a result of any or all of these factors.

29

Our business has and is expected to continue
to have significant customer concentration.

We
generate a large portion of our revenue from a small number of customers. There are inherent risks whenever a large percentage of total
revenue is concentrated with a limited number of customers. If we were to lose one or more of our customers, our operating results could
be materially adversely affected.

HPC
data centers

Enovum’s
data center in Montreal is currently serving 14 customers. No one customer has