Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 168

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 168
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 affected
if we are unable to obtain, develop and retain key personnel and skilled labor forces.

We must attract, develop and
retain executive officers and other professional, technical and labor forces with the skills and experience necessary to successfully
manage, operate and grow. We have recently hired certain key personnel for WhiteFiber, as well as the management team of Enovum. However,
competition for these employees is high, due, in part, to the nascent HPC Business workforce. In some cases, competition for these employees
is on a regional, national, or global basis. At times of low unemployment, it can be difficult for us to attract and retain qualified
and affordable personnel. A shortage in the supply of skilled personnel creates competitive hiring markets, increased labor expenses,
decreased productivity and potentially lost business opportunities to support our operating and growth strategies. Additionally, if we
are unable to hire employees with the requisite skills, we may be forced to incur significant training expenses. As a result, our ability
to maintain productivity, relationships with customers, competitive costs, and quality services is limited by the ability to employ, retain
and train the necessary skilled personnel and could negatively affect its results of operations, financial position and cash flows.

Supply chain disruptions may adversely affect
WhiteFiber’s operations.

WhiteFiber is a provider of
Graphic Processing Units (“GPUs”) compute and purchases NVIDA H100 servers, as well as other servers, through OEMS for example,
Supermicro, Dell, Hewlett Packard and ASUSTeK Computer Inc. Disruptions, shortages or delays
in WhiteFiber’s ability to source GPUs and price increases from suppliers have and may continue to occur, which would be expected
to adversely affect WhiteFiber’s results of operations, financial condition, cash flows and harm customer relationships. Any material
disruption at WhiteFiber’s facilities or those of its customers or suppliers or otherwise within its supply chain, whether as a
result of downtime, work stoppages or facility damage could prevent WhiteFiber from meeting customer demands or expected timelines, require
it to incur unplanned capital expenditures, or cause other material disruptions to its operations, any of which could have a material
adverse effect on WhiteFiber’s operations, financial position and cash flows. Further, supply chain disruptions can occur from events
out of the WhiteFiber’s control such as environmental incidents or other catastrophes.

We operate in a capital-intensive industry
and are subject to capital market and interest rate