Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 501

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 501
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 and technologies in a timely manner.
As our data centers business evolves, the competitive pressure to innovate will encompass a wider range of technologies and solutions.
We must continue to invest significant resources in personnel, technical infrastructure and R&D, including through acquisitions,
in order to advance/innovate our data centers. With the limited resources we have available, we may experience difficulties in expanding
and improving our data centers. Competition from existing and future competitors, particularly those better capitalized, could result
in our inability to secure acquisitions and partnerships that we may need to expand our data centers business in the future. This competition
from other entities with greater resources, experience and reputation may result in our failure to maintain or expand our data center
business, as we may never be able to successfully execute our business plan. If we are unable to expand and remain competitive, our business
could be negatively affected, which would have an adverse 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