Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 507

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 507
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 in our business or take advantage of business
opportunities.

If
one of our customers were to obtain exclusive rights to open source technologies that we employ across our businesses, our ability
to realize significant operating efficiencies could be jeopardized.

Our
business model leverages our ability to share significant open source technological innovations across cloud services, our data centers
and customers. If one of our customers were to obtain exclusive rights to what are now open source technologies we employ across our
businesses, we could be limited in obtaining essential supplies at competitive costs and sharing research and development costs across
our businesses. As a result, our ability to realize significant operating efficiencies by modifying our existing or new data centers
utilizing these technologies and our ability to serve all our customers could be jeopardized, which could materially adversely affect
our business, results of operations and future prospects.

We
may be vulnerable to physical security breaches, which could disrupt our operations and have a material adverse effect on our business,
financial condition and results of operations.

A
party who is able to compromise the physical security measures protecting our facilities could cause interruptions or malfunctions in
our operations and misappropriate our property or the property of our customers. As we provide assurances to our customers that we provide
the highest level of security, such a compromise could be particularly harmful to our brand and reputation. We may be required to expend
significant capital and resources to protect against such threats or to alleviate problems caused by breaches in security. As techniques
used to breach security change frequently and are often not recognized until launched against a target, we may not be able to implement
new security measures in a timely manner or, if and when implemented, we may not be certain whether these measures could be circumvented.
Any breaches that may occur could expose us to increased risk of lawsuits, regulatory penalties, loss of existing or potential customers,
harm to our reputation and increases in our security costs, which could have a material adverse effect on our business, financial condition
and results of operations.

79

Supply
chain disruptions may adversely affect WhiteFiber’s new project development.

WhiteFiber
is a provider of GPUs compute and purchases NVIDA H100, H200, B200, GB200 servers, as well as other servers, through OEMS, for example,
Super Micro Computer Inc®, Dell, and Hewlett Packard Enterprise. Disruptions, shortages or delays in WhiteFiber’s ability to
source GPUs and price increases from suppliers may occur, and adversely affect WhiteFiber