Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 45

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 45
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 with lower populations such as Iceland or remote parts of Canada, recruiting and retaining the necessary staff to operate our
locations may pose a challenge. When we encounter a relatively low population, the pool of available employees is limited. In addition,
some employers have offered significantly higher wages in order to fill vacant positions. This may adversely affect our ability to attract
and retain qualified personnel and may increase our employee costs if we have to increase the compensation we pay in response to the market.

Our data centers could be adversely impacted by climate change.

Severe weather events, such
as tornadoes, hurricanes, rain, drought, fire, ice and snowstorms, and high- and low- temperature extremes, occur in regions in which
we operate and maintain infrastructure. Our principal data centers in Iceland and Canada are designed to provide year-round cool weather
conditions. Nevertheless, climate change could change the frequency and severity of weather events, which may create physical and financial
risks to us. Such risks could have an adverse effect on our financial condition, results of operations and cash flows. Increases in severe
weather conditions or extreme temperatures may cause infrastructure construction projects to be delayed or canceled and limit resources
available for such projects resulting in decreased revenue or increased project costs. In addition, drought conditions could restrict
the availability of water supplies or limit the ability to obtain water use permits, inhibiting the ability to conduct operations. To
date, neither of our data centers in Iceland or Canada have experienced any material impacts to its financial condition, results of operations
or cash flows due to the physical effects of climate change.

The insurance industry may
be adversely affected by severe weather events, which may impact availability of insurance coverage, insurance premiums and insurance
policy terms.

Our failure to accurately predict our facilities’ and data centers’ requirements could have a material adverse effect on our business, financial condition and results of operations.

The costs of building out,
leasing and maintaining our facilities and data centers constitute a significant portion of our capital and operating expenses. In order
to manage growth and ensure adequate capacity for our new and existing customers while minimizing unnecessary excess capacity costs, we
continuously evaluate our short- and long-term data center capacity requirements. 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 our data center capacity requirements, we may not be able to service the required or expanding needs of our existing
customers and may be required to limit new customer acquisition