Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 384

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 384
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 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 by entering
into long-term contracts at each site. In our data center services, as of September 30, 2025, our contracts with our 14 customers
range from 12 to 60 months. In our cloud services business, we provide cloud infrastructure for highly scalable Graphic Processing
Units (“GPUs”) accelerated applications, or GPU clusters, to our customers under contracts spanning from month to month to
36 months. As these are new services in the industry, the value and longevity of the GPUs remain uncertain in this rapidly evolving
market. Given that we have only a limited history of operating a colocation data center, the long-term profitability of these contracts
cannot be presently determined. If we are unable to successfully implement our development plan or to increase our generation of revenue,
we will not remain profitable in the future.

We
intend to continue scaling our Company to increase our customer base and implement initiatives, including new business lines and global
expansion. These efforts may prove more expensive than we currently anticipate. We may be unable to secure the required financing which
may not result in increased revenue or profitability in the short term or at all. We will also incur increased compliance costs associated