Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 79

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 79
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. on imports from Mexico and Canada, as well as reciprocal
tariffs imposed by Canada 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, electrical components and HVAC systems, some of which the Company is sourcing from Mexico and Canada. The
tariffs the U.S. has imposed on Canadian steel and aluminum 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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Such higher costs for critical
data center components, potential disruptions to equipment supply chains and labor and cross-border workforce challenges could have material
adverse effects on our business, financial condition and results of operations.

Additionally, if tariffs increase
the cost of building and operating data centers in the U.S. and Canada, our customers, hyperscalers and cloud providers, may shift expansion
plans to more cost-effective regions, such as Europe or Asia. This could negatively impact [short-term and] long-term demand for WhiteFiber’s
colocation and infrastructure services.

Finally, in response to tariffs,
other countries have implemented retaliatory tariffs on U.S. goods. Political tensions as a result of trade policies could reduce
trade volume, investment, technological exchange, and other economic activities between major international economies, resulting in a
material adverse effect on global economic conditions and the stability of global financial markets, which could