Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 173

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 173
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 of $55.7 million and revenue from bitcoin mining of $58.6 million, offset by depreciation
and amortization expenses of $32.3 million. Positive cash flow during Fiscal 2023 resulted, in part, from gain from exchange of digital
assets of $18.8 million offset by $6.6 million impairment of digital assets.

We cannot assure you our
business model will allow us to continue to generate positive cash, given our substantial expenses in relation to our revenue at
this stage of our Company’s development. Our inability to offset our expenses with adequate revenue will adversely affect our
liquidity, financial condition and results of operations. Although we have adequate cash on hand and have drawn down on an effective
$500 million at-the-market shelf registration statement and anticipated cash flows from operating activities are expected to be
sufficient to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business for the
next 12 months, we cannot assure you that will be the case. We expect to need additional cash resources in the future as we wish to
pursue opportunities for investment, acquisition, capital expenditure or similar actions in order to implement our business plan.
The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness
would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot
assure you that financing will be available in amounts or on terms acceptable to us, if at all.

22

Our cash balances
are held at a number of financial institutions that expose us to their credit risk

We maintain our cash
and cash equivalents at financial or other intermediary institutions. The combined account balances at each institution located in the
United States typically exceed FDIC insurance coverage of $250,000 per depositor. The combined account balances at each institution located
in Iceland typically exceed the deposit guarantee schemes of the equivalent of €100,000 in Icelandic Krona per depositor. As a result,
there is a concentration of credit risk related to amounts on deposit in excess of the deposit insurance coverage amounts. At December
31, 2024, substantially all of our cash and cash equivalent balances held at financial institutions exceeded deposit insured limits. While
we did not have any direct exposure to Silicon Valley Bank, Signature Bank, or First Republic, which suffered severe liquidity losses
during 2023, if other banks and financial institutions enter receivership or become insolvent in the future in response to financial