Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 41

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 41
---
 our operating results and cash flow.

We
are not a telecommunications carrier. We believe that the availability of carrier capacity will directly affect our ability to achieve
our projected results. Any carrier may elect not to offer its services within our data centers. Any carrier that has decided to provide
network connectivity to our data centers may not continue to do so for any period of time. Further, some carriers are experiencing business
difficulties or have announced consolidations. As a result, some carriers may be forced to downsize or terminate connectivity within our
data centers, which could have an adverse effect on the business of our customers and, in turn, our own operating results.

Our
data centers may require construction and operation of a sophisticated redundant fiber network. The construction required to connect multiple
carrier facilities to data centers is complex and involves factors outside of our control, including regulatory requirements and the availability
of construction resources. We have obtained the right to use network resources owned by other companies, in order to attract telecommunications
carriers and customers to our portfolio. If the establishment of highly diverse network connectivity to our data centers does not occur,
is materially delayed or is discontinued, or is subject to failure, our operating results and cash flow may be materially adversely affected.
Additionally, any hardware or fiber failures on this network may result in significant loss of connectivity to our data centers. This
could negatively affect our ability to attract new customers or retain existing customers, which could have an adverse effect on our business,
financial condition and results of operations.

Any failure of our physical or information technology or operational technology infrastructure or services could lead to significant costs and disruptions.

Our
business depends on providing customers with highly reliable services, including with respect to power supply, physical security, cybersecurity,
and maintenance of environmental conditions. We may fail to provide such services because our operations are vulnerable to, among other
things, mechanical or telecommunications failure, power outage, human error, physical or electronic security breaches, cyberattacks, ransomware
attacks, war, terrorism, fire, earthquake, pandemics, hurricane, flood and other natural disasters, sabotage and vandalism.

Substantially
all of our customer agreements include terms requiring us to meet certain service level commitments. Any failure to meet these or other
commitments or any equipment damage in our data centers due to any reason could subject us to contractual liability, including service
level credits against customer rent payments, legal liability and monetary damages, regulatory sanctions, or, in certain cases of repeated
failures, the right by the customer to