Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 265

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 265
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fusion has filed a motion to dismiss the Second Amended Complaint and a hearing
on the motion has been scheduled for January 6, 2026.

Item
1A. Risk Factors

You
should refer to the other information set forth in this report, including the information set forth in “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” as well as in our condensed consolidated financial statements and
the related notes. Our business prospects, financial condition or results of operations could be adversely affected by any of these risks.

Except
as described below, our risk factors as of the date of this report have not changed materially from those described in “Part I,
Item 1A. Risk Factors” of our Form 10-K for the year ended December 31, 2024 (the “Annual Report”).  

Unless
the context indicates otherwise, references under the headings “Risks Related to WhiteFiber’s Cloud Services and Data Center
Operations,” “Risks Related to the Geopolitical Uncertainty” and “Risks Involving Intellectual Property”
in this Item 1A to the “Company,” “WhiteFiber” “we,” “us,” “our” and similar
terms refer to WhiteFiber, Inc. and its consolidated subsidiaries.

Please
note in considering the “Risk Factors” in Item 1A of our Annual Report that, notwithstanding the fact that Bit Digital,
Inc. has not conducted operations in the PRC since September 30, 2021, we have previously disclosed under Risk Factors in our Annual
Report, “We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China
in a certain period from now on.” Although the statute of limitations for non-compliance by our former business in the PRC is generally
two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations
involved a threat to financial security. In such event, the two-year period would be extended to five years.

75

Speculative
and Volatile Nature of ETH.

To
date, the Company has deployed a portion of the capital it has raised into ETH and its ability to achieve the objectives of its ETH strategy
depends, in part, on our ability to purchase ETH. Successfully implementing this strategy may present organizational and infrastructure
challenges, and the Company may not be able to fully implement or realize the intended benefits