Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 483

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 483
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 future customers increase their power footprint in our data centers over time, the corresponding reduction in available power
could limit our ability to increase occupancy rates or network density within our existing or future data centers. Furthermore, our aggregate
maximum contractual obligation to provide power and cooling to our customers may exceed the physical capacity at such data centers if
customers were to quickly increase their demand for power and cooling. If we are not able to increase the available power and/or cooling
or move the customer to another location within our data centers with sufficient power and cooling to meet such demand, we could lose
the customer as well as be exposed to liability under our customer agreements. In addition, our power and cooling systems are difficult
and expensive to upgrade. Accordingly, we may not be able to efficiently upgrade or change these systems to meet new demands without incurring
significant costs that we may not be able to pass on to our customers. Any such material loss of customers, liability or additional costs
could adversely affect our business, financial condition and results of operations.

Increased scrutiny and changing expectations
from stakeholders with respect to our environmental, social, and governance (“ESG”) practices and the impacts of climate change
may result in additional costs or risks.

Companies
across many industries are facing increasing scrutiny related to their ESG practices. Investor advocacy groups, certain institutional
investors, investment funds and other influential investors are also increasingly focused on ESG practices and in recent years have placed
increasing importance on the non-financial impacts of their investments. Furthermore, increased public awareness and concern regarding
environmental risks, including global climate change, has resulted and may continue to result in increased public scrutiny of our business
and our industry, and our management team may divert significant time and energy away from our operations and towards responding to such
scrutiny and reassuring our employees.

However,
WhiteFiber is committed to continuously embrace the sustainability of our HPC infrastructure with the majority of the GPUs running on
carbon-free renewable energy. The SEC has proposed rule changes that would require companies to include certain climate-related disclosures
such as climate-related risks that are reasonably likely to have a material impact on business, results of operations, or financial conditions.
Should such proposed rules be adopted, increased public scrutiny of our business may affect our operations, competitive position, and
financial condition.

In
addition, the physical risks of climate change may impact the availability and cost of materials and natural resources, sources and supply
of energy, could increase our insurance and other operating costs, including