Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 480

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 480
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 terms requiring us to meet certain service level commitments. Any failure to meet these or other
commitments or any equipment damage in our data centers due to any reason could subject us to contractual liability, including service
level credits against customer rent payments, legal liability and monetary damages, regulatory sanctions, or, in certain cases of repeated
failures, the right by the customer to terminate the agreement. Service interruptions, equipment failures or security breaches could also
materially impact our brand and reputation globally and lead to customer contract terminations or non-renewals and an inability to attract
customers in the future.

Any disruption of service experienced by
certain of our third-party service providers, or our ineffective management of relationships with third-party service providers could
harm our business, financial condition, operating results, cash flows and prospects.

We
rely on several third-party service providers for services that are essential to our business model, the most important of which are our
suppliers of power, electrical equipment (including GPU servers), building materials, and construction services. Additionally, as we build
our cloud service business, we also expect to rely on third parties to lease or sell us equipment which we then lease to certain of our
cloud service and colocation data center customers. In addition, we may depend upon outside advisors who may not be available on reasonable
terms as needed, or at all. To supplement the business experience of our officers and directors, we may be required to employ technical
experts, appraisers, attorneys, or other consultants or advisors. If these third parties or other outside advisors experience difficulty
providing the services we require, or if they experience disruptions or financial distress or cease operations temporarily or permanently,
or if the products they supply are defective or cease to operate for any reason, it could make it difficult for us to execute our operations.
If we are unsuccessful in identifying or finding highly qualified third-party service providers or employees, if we fail to negotiate
cost-effective relationships with them or if we are ineffective in managing and maintaining these relationships, it could materially and
adversely affect our business and our financial condition, operating results, cash flows and prospects.

Any delays or unexpected costs in the development
of any new properties acquired for development may delay and harm our growth prospects, future operating results and financial condition.

We
intend to build out additional HPC data centers in the future based on signed letters of intent at significant cost. Our successful development
of this and future projects is subject to many risks,