Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 509

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 509
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The
U.S. government has adopted new approaches to trade policy and in some cases, may renegotiate, or potentially terminate, certain
existing bilateral or multi-lateral trade agreements. The U.S. government has also imposed tariffs on certain foreign goods
and has raised the possibility of imposing significant, additional tariff increases or expanding the tariffs to capture other countries
and types of foreign goods. Because WhiteFiber is developing data centers in Canada and the United States, the imposition of tariffs
on imports between these countries or from other countries, such as a 50% tariff on copper imports announced in July 2025 by the
U.S. government, could materially impact the cost, timeline, and feasibility of our projects. Tariffs imposed by the U.S. on
imports from Mexico and Canada or from other countries, as well as reciprocal tariffs imposed by such countries on U.S. goods, could
increase WhiteFiber’s costs for key construction materials, specialized equipment, and labor, potentially delaying deployments
and reducing profitability.

Data
center construction relies heavily on steel, aluminum, copper, electrical components and HVAC systems, some of which the Company is sourcing
from Mexico and Canada. The tariffs the U.S. has imposed, or has considered imposing, on Canadian steel, aluminum and copper imports,
are expected to increase the cost of WhiteFiber’s potential projects in the U.S. Similarly, if Canada imposes reciprocal tariffs
on U.S. exports, WhiteFiber’s projects in Canada could see cost increases for imported power infrastructure, networking hardware,
and construction equipment.

Additionally,
several transformers, battery storage systems, and cooling systems used in our North American data centers are manufactured in or
pass through Mexico. If the U.S. imposes new or additional tariffs on Mexican-manufactured electrical equipment, this could
create supply chain bottlenecks and increase capital expenditures for both U.S. and Canadian facilities. Likewise, trade restrictions
on Canadian-manufactured networking equipment or semiconductors would disrupt supply availability for our potential projects in
the U.S.

Tariffs
and trade tensions between the U.S., Mexico, and Canada could also indirectly impact the availability and cost of skilled labor. Many
specialized contractors for data center construction, electrical work, and mechanical systems operate across borders. Increased
trade friction could reduce labor mobility, increase wages, or limit access to essential expertise, slowing project execution.

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