Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 383

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 383
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 Involving Intellectual Property”
in this Item 1A to the “Company,” “WhiteFiber” “we,” “us,” “our” and similar
terms refer to WhiteFiber, Inc. and its consolidated subsidiaries.

Please
note in considering the “Risk Factors” in Item 1A of our Annual Report that, notwithstanding the fact that Bit Digital,
Inc. has not conducted operations in the PRC since September 30, 2021, we have previously disclosed under Risk Factors in our Annual
Report, “We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China
in a certain period from now on.” Although the statute of limitations for non-compliance by our former business in the PRC is generally
two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations
involved a threat to financial security. In such event, the two-year period would be extended to five years.

75

Speculative
and Volatile Nature of ETH.

To
date, the Company has deployed a portion of the capital it has raised into ETH and its ability to achieve the objectives of its ETH strategy
depends, in part, on our ability to purchase ETH. Successfully implementing this strategy may present organizational and infrastructure
challenges, and the Company may not be able to fully implement or realize the intended benefits of its strategy. Moreover, the price
of ETH is subject to significant volatility. In addition, if it chooses to do so, there is no guarantee that the Company will be able
to sell its ETH at prices quoted on various cryptocurrency trading platforms or at all if it determines to do so. The supply of ETH is
currently controlled by the source code of the Ethereum platform, and there is a risk that the developers of the code and the participants
in the Ethereum network could develop and/or adopt new versions of the Ethereum software that significantly increase the supply of ETH
in circulation, negatively impacting the trading price of ETH. Given our ETH holdings, any significant decrease in the price of ETH may
materially and adversely affect the value of the Company’s securities and, in turn, the Company’s business, results of operation
and financial condition.

The
ETH markets are sensitive to new developments, and since volumes are still maturing, any significant changes in market sentiment (by
way of sensationalism in the media or otherwise) can induce large swings in volume