Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 390

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 390
---
the rapid pace of innovation in the field of AI has led to developing and evolving regulatory frameworks globally, which are expected
to become increasingly complex as AI continues to evolve. Regulators and lawmakers around the world have started proposing and adopting,
or are currently considering, regulations and guidance specifically on the use of AI. Regulations related to AI Technologies have
been introduced in the United States at the federal level and are also enacted and advancing at the state level. Additional regulations
may impact our customers’ ability to develop, use and commercialize AI Technologies, which would impact demand for our platform,
solutions, and services and may affect our business, operating results, financial condition, and future prospects.

AI
and related industries, including cloud services, are under increasing scrutiny from regulators due to their concerns about market concentration,
anti-competitive practices, and the pace of partnerships and acquisitions involving generative AI startups. As the industry continues
to grow, transactions and business conduct will likely continue to draw scrutiny from regulators. Our customers may become subject to
further AI regulations, including any restrictions on the total consumption of compute technology, which could cause a delay or impediment
to the commercialization of AI technology and could lead to a decrease in demand for our customers’ AI infrastructure, and may
adversely affect our business, operating results, financial condition, and future prospects.

78

WhiteFiber
operates in a capital-intensive industry and is subject to capital market and interest rate risks.

WhiteFiber’s
operations require significant capital investment to purchase and maintain the property and equipment required to provide specialized
infrastructures to support generative AI work streams. In addition, WhiteFiber’s operations include a significant level of fixed
and semi-fixed costs. Consequently, WhiteFiber will rely on capital markets, as sources of liquidity for capital requirements for
growth. If WhiteFiber is unable to access capital at competitive rates, the ability to implement business plans, make capital expenditures
or pursue acquisitions it would otherwise rely on for future, growth may be adversely affected. For example, without obtaining additional
debt financing, WhiteFiber will not have sufficient funds to retrofit NC-1 into a HPC data center or achieve its estimated 99 MW
(gross) of total HPC data center capacity by May 2029 and other growth strategies. Market disruptions may increase the cost of borrowing
or adversely affect WhiteFiber’s ability to access one or more financial markets. Such market disruptions could