Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 28

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 28
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, antitrust, tax, property entitlements and land use, product liability, health
and safety, and employment claims. The outcome of any future lawsuits, claims, investigations or proceedings is often difficult to predict
and could be adverse and material in amount. In addition to the monetary cost, litigation can divert management’s attention from
its core business opportunities. Development of new information in these matters can often lead to changes in management’s estimated
liabilities associated with these proceedings including the judge’s rulings or judgements, jury verdicts, settlements or changes
in applicable law. The outcome of such matters is often difficult to predict, and unfavorable outcomes could have a material impact to
our results of operations, financial position and cash flows.

We do not have any business interruption or disruption insurance coverage.

Currently, we do not have
any business liability or disruption insurance to cover our operations, other than director’s and officer’s liability insurance.
We have determined that the costs of insuring for these risks and the difficulties associated with acquiring such insurance on commercially
reasonable terms make it impractical for us to have such insurance. Any uninsured business disruptions may result in our incurring substantial
costs and the diversion of resources, which could have an adverse effect on our results of operations and financial condition.

General risk factors that could impact our businesses.

Certain additional factors
may negatively impact our financial results in future periods. The following factors should be considered for a better understanding of
the risks to us:

| ● | Acquisition, disposal, and impairments of assets or facilities: These activities can lead to financial losses, operational disruption, or reduced asset value if transactions are poorly timed, overpriced, or if market conditions change. |

| ● | The cyclical nature of large infrastructure projects. Our data center development is subject to long lead times, significant upfront capital investment, including equity and debt financing, and dependence on customer demand forecasts. As a result, our infrastructure projects are exposed to economic cycles, technology refresh cycles, and shifts in AI or cloud compute demand. |

| ● | Labor negotiations or disputes: Work stoppages or unfavorable labor terms can disrupt operations, increase costs, and delay project timelines. |

| ● | Inability of contract counterparts to meet their contractual obligations: Default by suppliers, customers, or partners can result in revenue shortfalls, service disruptions, or increased costs to find replacements. |

| ● | The inability to effectively integrate the operations and the internal controls of any acquired companies: Poor integration can lead to inefficiencies, compliance risks,