Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 164

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 164
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 in these areas. Such
costs could be material.

As
an independent, publicly traded company, WhiteFiber may be more susceptible to market fluctuations and other adverse events than it would
have been, were it still a part of Bit Digital. As part of Bit Digital, WhiteFiber has been able to enjoy certain benefits from Bit Digital’s
operating diversity and available capital for investments.

As
an independent, publicly traded company, WhiteFiber does not have similar operating diversity and may not have similar access to capital
markets, which could have a material adverse effect on its financial position, results of operations and cash flows.

82

WhiteFiber
could experience temporary interruptions in business operations and incur additional costs as it further develops information technology
infrastructure and transitions its data to its stand-alone systems.

WhiteFiber
is in the process of preparing information technology infrastructure and systems to support its critical business functions, including
accounting and reporting, in order to replace many of the systems and functions Bit Digital has provided. WhiteFiber may experience temporary
interruptions in business operations if it cannot transition effectively to its own stand-alone systems and functions, which could
disrupt its business operations and have a material adverse effect on profitability. In addition, WhiteFiber’s costs for the operation
of these systems may be higher than the amounts reflected in the combined financial statements.

Risks
Involving Intellectual Property

We
use certain open source technology in our business. We may face claims from third parties claiming ownership of, or demanding
the release of, the technology and any other intellectual property that we developed using or derived from such open-source technology.

We
utilize a combination of open-source and licensed third-party technologies in the development and operation of our cloud services.
While open-source technologies enable rapid development and cost efficiencies, they also pose potential risks, such as security
vulnerabilities, lack of long-term support, and legal risks related to licensing terms. Similarly, reliance on licensed third-party technologies
may expose us to risks associated with changes in licensing terms, costs, or discontinuation of the licensed products.

We
intend to continue to use open source technology in the future. There is a risk that open source technology licenses
could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to offer our products. By the terms
of certain open source licenses, if we combine our