Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 145

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 145
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 procure these
materials from our suppliers in sufficient quantities to facilitate hardware deployment at scale and on accelerated timelines. To mitigate
potential supply chain disruptions and ensure the smooth operation of our facilities, we have established long-term contracts and agreements
with key suppliers. These arrangements give us greater certainty regarding the availability and pricing of essential components and materials.
Furthermore, we continuously monitor market trends and maintain open lines of communication with our suppliers to anticipate and address
potential supply chain challenges.

By proactively managing our
supplier relationships, securing necessary materials in advance, and closely monitoring market conditions, we aim to minimize the impact
of supply chain fluctuations on our operations. This approach enables us to maintain a steady pace of hardware deployments and facility
development, ultimately supporting our goal of expanding our HPC data center and cloud service capabilities and maximizing shareholder
value. However, we rely on a limited number of vendors for certain products and services for our data center facilities, and some of our
contracts provide a single source of materials. If any of our key suppliers cannot perform under their contracts or satisfy our orders,
it could significantly delay our data center development and operations. While we may be able to engage replacement suppliers, this would
likely lead to operational delays and increased costs.

Customers

HPC Data Centers

Our HPC data center customer base consists of
two primary segments:

●VFX
– Visual effects that are created using computers or models. These customers benefit from our high-density solutions, reaching
upwards of 50kW per cabinet, to accommodate their VFX workloads and data generation.

●GPU
cloud – our GPU cloud customers offer on demand access to their GPUs for tasks like AI, VFX rendering and scientific computing

Currently, we provide HPC data center services
at our leased MTL 1 facility, although our customers are based across Canada and Europe.

7

Cloud Services

Our cloud services customer base also is comprised
of two primary segments:

●Direct
end users – these customers primarily leverage our compute power for model training and inference

●GPU
marketplaces – these platforms resell our computing power to their own end users. Since we do not have direct visibility into their
end-user base, there may be some overlap among end users across different marketplaces.

We currently provide cloud services across the
U.S., Europe, and Asia.

Global Logistics

Global supply logistics have
caused delays across all distribution channels, impacting the HPC and AI markets. Delivery schedules for specialized equipment, such as
high-performance computing systems