Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 160

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 160
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 1A. Risk Factors

An investment in our
Ordinary Shares involves a high degree of risk. You should carefully consider the risks and uncertainties described below together with
all other information contained in this report, including the matters discussed under the heading “Forward-Looking Statements”
before you decide to invest in our Ordinary Shares. The Company may be subject to various legal and operational risks as a result
of its previously being a China-based Issuer with substantial amounts of the Company’s operations previously in China and Hong Kong.
The legal and regulatory environment in China is in many respects different from the United States. These risks and others could result
in a material change in the value of our securities and/or significantly limit or completely limit or completely hinder our ability to
offer or continue to offer our securities to investors and cause the value of such securities to significantly decline or be worthless.
If any of the following risks, or any other risks and uncertainties that are not presently foreseeable to us, actually occur, our business,
financial condition, results of operations, liquidity and our future growth prospects could be materially and adversely affected.

The Company is not required to provide the information
called for in this item due to its status as a Smaller Reporting Company, however we describe below some of the risks we believe are material
to our business. You should carefully consider the following risks in evaluating us and our business. You should also refer to the other
information set forth in this report, including the information set forth in “Business” and “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” as well as in our consolidated financial statements and the related
notes. Our business prospects, financial condition or results of operations could be adversely affected by any of the following risks. 

General Risks

We have a history
of operating losses, and we may not be able to sustain profitability; we have recently shifted our emphasis from our digital assets mining
business, to cloud services and HPC data centers and we may not be continuously successful in this business.

For the year ended December
31, 2023 (“Fiscal 2023”), as a result of the decline in revenue from digital assets mining, we recognized a net loss of $13.9
million. Although we have experienced profitability from our cloud services and HPC data centers for the year ended December 31, 2024
(“Fiscal 2024”), we may incur losses as we continue to work to shift and grow our cloud services and HPC