Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 196

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 196
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 efficient may not succeed and may outpace monetization efforts. Increases in our costs without a corresponding increase
in our revenue would increase our losses and could seriously harm our business and financial performance.

The properties
included in our mining network may experience damage, including damage that is not covered by insurance. 

As of December 31, 2024,
our mining operations in the states of Texas, Kentucky and New York in the United States and Iceland are, and any future mining sites
we may establish will be, subject to a variety of risks relating to physical condition and operation, including, but not limited to:

●the
presence of construction or repair defects or other structural or building damage;

●any
noncompliance with or liabilities under applicable environmental, health or safety regulations or requirements or building permit requirements;

●any
damage resulting from natural disasters, such as hurricanes, earthquakes, fires, floods and windstorms; and

●claims
by employees and others for injuries sustained at our properties.

For example, our mines
could be rendered inoperable, temporarily or permanently, as a result of a fire or other natural disaster, the coronavirus or another
pandemic, or by a terrorist or other attack. The security and other measures we take to protect against these risks may not be sufficient.
Additionally, our mines could be materially adversely affected by a power outage or loss of access to the electrical grid or loss by the
grid of cost-effective sources of electrical power generating capacity. Given the power requirements of our mines, it would not be feasible
to run miners on back- up power generators in the event of a power outage. We do not have any insurance to cover the replacement cost
of any lost or damaged miners, or any interruption of our mining activities. In the event of an uninsured loss, such mines may not be
adequately repaired in a timely manner or at all, and we may lose some or all of the future revenues anticipated to be derived from such
mines.

From time to time,
our service providers have been unable to supply sufficient electric power for us to operate our miners, which has adversely affected
our operations, causing us to relocate some or all of our miners to an alternative facility, which may have a less advantageous cost structure
and our business and results of operations may suffer as a result.

We made a significant
capital investment in purchasing second-hand miners in order to implement them rapidly to mine bitcoin at prices advantageous to us. Management
believes, based on its knowledge of the industry