Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 44

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 44
---
, and operating results.

Our
ongoing investments that we are making in infrastructure, research and development augment our data center capabilities, reflect our ongoing
efforts to innovate and provide products and services that are helpful to our customers. However, these investments may not be commercially
viable or may not result in an adequate return of capital. These endeavors involve significant risks and uncertainties, including diversion
of resources and management attention from current operations, different monetization models, and the use of alternative investment, governance,
or compensation structures that may fail to adequately align incentives across the company or otherwise accomplish their objectives.

If we incorrectly estimate our hosting capacity requirements and related capital expenditures, our results of operations could be adversely affected.

We
are continuously evaluating our capacity requirements in order to effectively manage our capital expenditures and operating results. However,
we may be unable to accurately project our future capacity needs or sufficiently allocate resources to address such needs. If we overestimate
our business’ capacity requirements or the demand for our services and therefore secure excess data center capacity, our operating
margins could be materially reduced. If we underestimate these requirements, we may not be able to provide sufficient service to our existing
customers or may be required to limit new customer acquisition, both of which may materially and adversely impair our results of operations.

Similarly,
we have entered into multi-year contract commitments with our service providers in Iceland and Canada. If we overestimate our capacity
requirements and therefore secure excess capacity and have excess capital expenditures, our operating margins could be materially reduced.

Certain natural disasters or other external events, including climate change or mechanical failures, could harm our business, financial condition, results of operations, cash flows, and prospects.

We
may also experience disruptions due to mechanical failure, human error, physical or electronic security breaches, war, terrorism, fire,
earthquake, pandemics, hurricane, flood and other natural disasters, sabotage and vandalism. Our systems may be susceptible to damage,
interference, or interruption from modifications or upgrades, power loss, telecommunications failures, computer viruses, ransomware attacks,
computer denial of service attacks, phishing schemes, or other attempts to harm or access our systems. Such disruptions could materially
and adversely affect our business and our financial condition, operating results, cash flows, and prospects.

In
addition, there continues to be a lack of consistent climate legislation, which creates economic and regulatory uncertainty for our business.
With the energy demand of our business, we may become a target for future environmental and energy regulation. New legislation and increased
regulation