Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 506

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 506
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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 include:

    ●
    a significant economic
    downturn;

    ●
    the financial distress
    of unrelated industry leaders in the same line of business;

    ●
    deterioration in capital
    market conditions;

    ●
    turmoil in the financial
    services industry;

    ●
    volatility in GPU prices;

    ●
    terrorist attacks;

    ●
    war; or

    ●
    cyberattacks.

If
we raise additional equity financing, our shareholders may experience significant dilution of their ownership interests, and the per
share value of our ordinary shares could decline. Furthermore, if we engage in debt financing, the holders of debt will have priority
over the holders of our ordinary shares on order of payment preference. We may be required to accept terms that restrict or limit our
ability to, among other things:

    ●
    pay cash dividends to our
    shareholders, subject to certain limited exceptions;

    ●
    redeem or repurchase our
    ordinary shares or other equity;

    ●
    incur additional indebtedness;

    ●
    permit liens on assets;

    ●
    make certain investments
    (including through the acquisition of stock, shares, partnership or limited liability company interests, any loan, advance or capital
    contribution);

    ●
    sell, lease, license, lend
    or otherwise convey an interest in a material portion of our assets; and

    ●
    sell or otherwise issue
    ordinary shares or other share capital subject to certain limited exceptions.

These
restrictions may limit our ability to obtain additional financing, withstand downturns