Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 26

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 26
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 a small number of customers. There are inherent risks whenever a large percentage of total
revenue is concentrated with a limited number of customers. If we were to lose one or more of our customers, our operating results could
be materially adversely affected.

WhiteFiber Data Centers

Enovum’s
data center in Montreal is currently serving 14 customers. No one customer has accounted for in excess of 50% of revenue in the three
months ended March 31, 2025 or the 12 months ended December 31, 2024. During fiscal year 2023, 12 customers accounted for 100% of Enovum’s
revenue.

Cloud Service Business

During
2024, our HPC data center in Iceland had contracts with three customers. Our Initial Customer has accounted for approximately 75% of our
revenue during the three months ended March 31, 2025 and 43% of our revenues through December 31, 2024.

We
expect that the limited number of customers will continue to account for a high percentage of our revenue for the foreseeable future.
In addition, demand for our services generated by these customers may fluctuate significantly from quarter to quarter. The concentration
of our customer base increases risks related to the financial condition of our customers, and the deterioration in financial condition
of a single customer or the failure of a single customer to perform its obligations could have a material adverse effect on our results
of operations and cash flow. In the event that any of our customers experience a decline in their equipment usage for any reason, or decide
to discontinue the use of our facilities, we may be compelled to lower our prices or risk losing a significant customer. Such developments
could adversely affect our profit margins and financial position, leading to a negative impact on our revenue and operational results.

Failure to attract, grow and retain a diverse and balanced customer base, could adversely affect our business and operating results.

Our
ability to attract, grow and retain a diverse and balanced customer base, consisting of enterprises, cloud service providers, network
service providers, and digital economy customers, may affect our ability to grow our business. Currently our data center operations are
limited to Iceland and Montreal, Canada which enables us to better generate significant interconnection revenues, which in turn increases
our overall revenues. Our ability to attract customers to our data centers will depend on a variety of factors, including our product
offerings, the presence of carriers, the overall mix of customers, the presence of