Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 194

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 194
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 future performance. Quarterly and annual expenses reflected in our financial statements may be
significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations
of securities analysts and investors. As a result, the trading price of our Ordinary Shares may increase or decrease significantly. See
“The price of digital assets may be affected by the sale of such digital assets by other vehicles investing in digital assets
or tracking bitcoin markets.”

35

Unfavorable Digital
Asset Market Conditions

The prices of
digital assets, including bitcoin, have experienced substantial volatility, as described above. During the year 2022, a number of
companies in the digital assets industry declared bankruptcy, including Core Scientific, Celsius Network, Voyager Digital Ltd.,
Three Arrows Capital, BlockFi, and FTX Trading Ltd. (“FTX”) and concerning us, Compute North, as described in the
following risk factor. Such bankruptcies have contributed, at least in part, to further price decreases in bitcoin and other digital
assets, a loss of confidence in the participants of the digital asset ecosystem and negative publicity surrounding digital assets
more broadly. The bankruptcies also led to various SEC and criminal enforcement proceedings. All of the foregoing has had a macro
decline in the price of securities of digital asset companies, including ours.

Other than Compute North,
we have not been directly impacted by any of the recent bankruptcies in the digital asset space, as we have no contractual privity or
relationship to the relevant parties. The Company relocated its miners out of Compute North’s facilities to those hosted by Blockfusion
and Coinmint in New York State. However, termination of the Master Agreement with Compute North had an adverse effect on the Company’s
business and financial condition.  Such recent events have contributed, at least in part, to our and our peers stock price as well
as the price of bitcoin. If the liquidity of the digital assets markets continues to be negatively impacted, digital asset prices (including
the price of bitcoin) may continue to experience significant volatility and confidence in the digital asset markets may be further undermined.
A perceived lack of stability in the digital asset exchange market and the closure or temporary shutdown of digital asset exchanges due
to business failure, hackers or malware, government-mandated regulation, or fraud, may reduce confidence in digital asset networks and
result in greater volatility in digital asset values. Any of these events may adversely affect our operations and results of operations
and, consequently, an investment in us.

We may