Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 473

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 473
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 due to low water level in Icelandic reservoirs utilized by hydropower plants,
which provide hydro-generated energy in the country. In the event of a water shortage, and therefore a shortage of hydro-generated energy,
the prioritization framework for Icelandic energy favors residential and certain business uses over data centers and similar facilities.
In addition, volcanic eruptions might interrupt the generation of electricity from geothermal energy, as occurred several times in 2023.

Accordingly,
the energy supply for WhiteFiber’s HPC data centers may be subject to disruption and could become insufficient to support our operations.
WhiteFiber’s financial condition or results of operations may be adversely affected if its HPC data centers are disrupted or discontinued
due to a curtailment or interruption of the energy supply.

27

Our business may be adversely affected by
future changes in the European Union’s regulations related to AI, which could be reflected in Icelandic and European Union countries’
domestic laws and regulations.

While
no current Icelandic legislation directly impacts colocation operations, Iceland, being a member of the European Economic Area, is likely
to be influenced by forthcoming European Union acts such as the Artificial Intelligence Act and the AI Liability Directive. These acts
may shape the future regulatory landscapes in Iceland and lead the Icelandic government to adopt such regulations domestically.

The
potential adoption of said AI regulatory framework could introduce new compliance requirements for HPC data centers, as well as other
legal and regulatory obligations, impacting operational practices and liability considerations for the Company’s HPC data centers.
This could ultimately adversely affect our Company’s business and financial results.

Risks Related to Our Data Center Operations

We are at an early stage of development
of our business, currently have limited sources of revenue, and may not become profitable in the future.

We
are subject to the risks and uncertainties of a new business, with limited sources of revenue. We began generating revenue from our colocation
data center operations when our first colocation facility came online in Iceland in January 2024. We completed an acquisition of Enovum
in October 2024. Accordingly, we have only a limited history upon which an evaluation of our prospects and future performance can be made.

As
we grow and develop as a business, we are attempting to reduce the impact of variability on our revenue and colocation costs by entering
into long-term contracts at each site. In our colocation services, Enovum’s contracts with its 14 customers range from month to
month to 60 months. In our cloud service