Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 154

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 154
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 reduced. If we underestimate our data center capacity requirements, we may not be able to service the required or expanding
needs of our existing customers and may be required to limit new customer acquisition, which could have a material adverse effect on
our business, financial condition and results of operations.

77

The
broader adoption, use, and commercialization of AI technology, and the continued rapid pace of developments in the AI field, are inherently
uncertain. Failure by our customers to use our cloud services to support AI use cases in their systems, or our ability to keep up with
evolving AI technology requirements and regulatory frameworks, could have a material adverse effect on our business, operating results,
financial condition, and future prospects.

As
part of our growth strategy, we seek to attract and acquire customers requiring high-performance computing, such as AI, machine
learning, and automated decision-making technologies, including proprietary AI algorithms and models (collectively, “AI Technologies”).

AI
has been developing at a rapid pace, and continues to evolve and change. As demand continues for AI services, AI providers, including
our customers, have sought increased compute capacity to enable advancements in their AI models and service the demands of end users.
We cannot predict whether additional computing power will continue to be required to develop larger, more powerful AI models, or if the
practical limits of AI technology will plateau in the future regardless of available compute capacity. Further, there have been recent
advancements in AI technology, including open-source AI models, that may lead to compute and other efficiencies that may impact
the demand for AI services, including our platform, solutions, and services, which may adversely impact our revenue and profitability.
In the event that existing scaling laws do not continue to apply as they have in the past, demand by our customers for compute resources,
including our solutions and services, may not continue to increase over time, or may decrease if overall demand for AI is impacted by
a lack of further technological development. If we are unable to keep up with the changing AI landscape or in developing services to
meet our customers’ evolving AI needs, or if the AI landscape does not develop to the extent we or our customers expect, our business,
operating results, financial condition, and future prospects may be adversely impacted.

Additionally,
we may incur significant costs and experience significant delays in developing new solutions and services or enhancing our current platform
to adapt to the changing AI landscape, and may not achieve a return on investment or capitalize