Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 269

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 269
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fourth quarter of 2025 at MTL-3. In May 2025, we purchased a former industrial manufacturing building and land outside of Greensboro,
North Carolina which we expect to be operational in the first quarter of 2026.

In
order to maintain its data center operations, WhiteFiber and its landlord in Iceland and in Montreal will need to acquire sufficient
supplies of electricity generated by hydroelectric, geothermal energy and electricity. In addition, WhiteFiber’s data centers need
to also maintain reliable and adequate infrastructure and cooling systems to ensure optimal performance.

Currently,
Icelandic and Canadian-based data centers and similar facilities, including the ones contracted with the Company, may face significant
risks of energy disruption, curtailment or discontinuance due to low water levels. Water reservoirs are utilized by hydropower plants,
which provide hydro-generated energy in the country. In the event of a water shortage, and therefore a shortage of hydro-generated energy,
the prioritization framework for Icelandic energy favors residential and certain business uses over data centers and similar facilities.
In addition, volcanic eruptions might interrupt the generation of electricity from geothermal energy, as occurred several times in 2023.

In
addition, we may be subject to risks and unanticipated costs associated with obtaining power from various utility companies. Utilities
that serve our data centers may be dependent on, and sensitive to price increases for, a particular type of fuel, including hydroelectric.
In addition, the total cost of delivered electricity could increase as a result of: regulations intended to regulate carbon emissions
and other pollutants, ratepayer surcharges related to recovering the cost of extreme weather events and natural disasters (including
volcanoes in Iceland and floods in North Carolina), geopolitical conflicts, military conflicts, grid modernization charges, as well as
other 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.

Accordingly,
the energy supply for WhiteFiber’s data centers may be subject to disruption and could become insufficient to support our operations.
WhiteFiber’s financial condition or results of operations may be adversely affected if its WhiteFiber data centers are disrupted
or discontinued due to a curtailment or interruption of the energy supply.

Establishing
data centers in remote areas may adversely affect our ability to retain staff and increase our compensation costs.

If
we establish data