Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 36

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 36
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 our platform, solutions,
and services and may affect our business, operating results, financial condition, and future prospects.

AI
and related industries, including cloud services, are under increasing scrutiny from regulators due to their concerns about market concentration,
anti-competitive practices, and the pace of partnerships and acquisitions involving generative AI startups. As the industry continues
to grow, transactions and business conduct will likely continue to draw scrutiny from regulators. Our customers may become subject to
further AI regulations, including any restrictions on the total consumption of compute technology, which could cause a delay or impediment
to the commercialization of AI technology and could lead to a decrease in demand for our customers’ AI infrastructure, and may adversely
affect our business, operating results, financial condition, and future prospects.

<div align='center'>17</div>

Risks Related to Our Data Center Operations

We are at an early stage of development of our business, currently have limited sources of revenue, and may not become profitable in the future.

We are subject to the
risks and uncertainties of a new business, with limited sources of revenue. We completed our acquisition of Enovum in October 2024. Accordingly,
we have only a limited history upon which an evaluation of our data center prospects and future performance can be made.

As
we grow and develop as a business, we are attempting to reduce the impact of variability on our revenue and colocation costs by entering
into long-term contracts at each site. In our data center services, our contracts with its 14 customers range from month to month to 60
months. As these are new services in the industry, the value and longevity of the GPUs remain uncertain in this rapidly evolving market.
Given that we have only a limited history of operating a colocation data center, the long-term profitability of these contracts cannot
be presently determined. If we are unable to successfully implement our development plan or to increase our generation of revenue, we
will not remain profitable in the future.

We
intend to continue scaling our company to increase our customer base and implement initiatives, including new business lines and global
expansion. These efforts may prove more expensive than we currently anticipate. We may be unable to secure the required financing which
may not result in increased revenue or profitability in the short term or at all. We will also incur increased compliance costs associated
with growth, expanding our customer base, and being a public company. Our efforts to grow our business may be costlier than we expect,
or the revenue