Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 396

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 396
---
 future, primarily as a result of the factors described
below:

    ●
    Prior to its initial public
    offering, WhiteFiber’s business had been operated by Bit Digital as part of its broader corporate organization, rather than
    as an independent company, and Bit Digital or one of its affiliates performed certain corporate functions for WhiteFiber. WhiteFiber’s
    historical financial results reflect allocations of corporate expenses from Bit Digital for such functions and are likely to be less
    than the expenses WhiteFiber would have incurred had it operated as a separate publicly traded company.

    ●
    Historically, WhiteFiber
    shared economies of scope and scale in costs, employees and vendor relationships. Although WhiteFiber has entered into a transition
    services agreement (the “Transition Services Agreement”) with Bit Digital, these arrangements may not retain or fully
    capture the benefits that WhiteFiber has enjoyed as a result of being integrated with Bit Digital and may result in it paying higher
    charges than in the past for these services. This could have a material adverse effect on WhiteFiber’s business, financial
    position, results of operations and cash flows following the completion of the distribution.

    ●
    Generally, WhiteFiber’s
    working capital requirements and capital for its general corporate purposes, including acquisitions and capital expenditures, have
    in the past been satisfied as part of the corporate wide cash management policies of Bit Digital. Following the completion of its
    initial public offering, WhiteFiber’s results of operations and cash flows are likely to be more volatile, and it may need
    to obtain additional financing from banks, through public offerings or private placements of debt or equity securities, or a combination
    of both, strategic relationships or other arrangements, which may or may not be available and may be more costly.

    ●
    WhiteFiber’s historical
    financial information does not reflect any debt that it may incur in the future.

    ●
    As a public company, WhiteFiber
    is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the
    Sarbanes-Oxley Act and the Dodd-Frank Act and is required to prepare its financial statements according to the rules and regulations
    required by the SEC. Complying with these requirements could result in significant costs and require WhiteFiber to divert substantial
    resources, including management time, from other activities.

81

Other
significant