Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 188

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 188
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 charges borne by ratepayers. Increases
in the cost of power at any of our data centers could put those locations at a competitive disadvantage relative to data centers that
are supplied power at a lower price.

We depend on third parties to provide network
connectivity to the customers in our data centers and any delays or disruptions in connectivity may materially adversely affect 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, war,
terrorism, fire, earthquake, pandemics, hurricane, flood and other natural disasters, sabotage and vandalism.

31

Substantially
all of our customer agreements include terms