Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 149

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 149
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 our ability to purchase ETH. Successfully implementing this strategy may present organizational and infrastructure
challenges, and the Company may not be able to fully implement or realize the intended benefits of its strategy. Moreover, the price
of ETH is subject to significant volatility. In addition, if it chooses to do so, there is no guarantee that the Company will be able
to sell its ETH at prices quoted on various cryptocurrency trading platforms or at all if it determines to do so. The supply of ETH is
currently controlled by the source code of the Ethereum platform, and there is a risk that the developers of the code and the participants
in the Ethereum network could develop and/or adopt new versions of the Ethereum software that significantly increase the supply of ETH
in circulation, negatively impacting the trading price of ETH. Given our ETH holdings, any significant decrease in the price of ETH may
materially and adversely affect the value of the Company’s securities and, in turn, the Company’s business, results of operation
and financial condition.

The
ETH markets are sensitive to new developments, and since volumes are still maturing, any significant changes in market sentiment (by
way of sensationalism in the media or otherwise) can induce large swings in volume and subsequent price changes. Such volatility can
adversely affect the business and financial condition of the Company.

Momentum
pricing typically is associated with growth stocks and other assets whose valuation, as determined by the public, accounts for anticipated
future appreciation in value. The Company believes that momentum pricing of ETH has resulted, and may continue to result, in speculation
regarding future appreciation in the value of ETH, inflating and making more volatile the value of ETH. As a result, ETH may be more
likely to fluctuate in value due to changing investor confidence in future appreciation, which could adversely affect the business and
financial condition of the Company.

Risks
Related to WhiteFiber’s Cloud Services and 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. The Company began generating revenue from
cloud services in Iceland in January 2024. Accordingly, we have only a limited history upon which an evaluation of our 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