Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 456

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 456
---
    employee retention and
    recruiting;

    ●
    business combinations involving
    WhiteFiber; and

    ●
    the nature, quality and
    pricing of services that WhiteFiber and Bit Digital have agreed to provide each other.

WhiteFiber
may not be able to resolve potential conflicts, and even if it does, the resolution may be less favorable than if it were dealing with
an unaffiliated party.

The
agreements WhiteFiber enters into with Bit Digital may be amended upon agreement between the parties. While WhiteFiber is controlled
by Bit Digital, it may not have the leverage to negotiate amendments to these agreements if required on terms as favorable to it as those
it would negotiate with an unaffiliated third party.

As
an independent, publicly traded company, WhiteFiber may not enjoy the same benefits that its subsidiaries did as subsidiaries of Bit
Digital.

Historically,
WhiteFiber’s business has been operated through subsidiaries of Bit Digital, and Bit Digital performed substantially all the corporate
functions for their operations, including managing financial and human resources systems, internal auditing, investor relations, treasury
services, financial reporting, finance and tax administration, benefits administration, legal, and regulatory functions.

Bit
Digital provides support to WhiteFiber with respect to certain of these functions on a transitional basis. WhiteFiber will then need
to replicate certain facilities, systems, infrastructure and personnel to which it will no longer have access after the distribution
and will likely incur capital and other costs associated with developing and implementing its own support functions in these areas. Such
costs could be material.

As
an independent, publicly traded company, WhiteFiber may be more susceptible to market fluctuations and other adverse events than it would
have been, were it still a part of Bit Digital. As part of Bit Digital, WhiteFiber has been able to enjoy certain benefits from Bit Digital’s
operating diversity and available capital for investments.

As
an independent, publicly traded company, WhiteFiber does not have similar operating diversity and may not have similar access to capital
markets, which could have a material adverse effect on its financial position, results of operations and cash flows.

82

WhiteFiber
could experience temporary interruptions in business operations and incur additional costs as it further develops information technology
infrastructure and transitions its data to its stand-alone systems.

WhiteFiber
is in the process of preparing information technology infrastructure and systems to support its critical business functions, including
accounting and reporting, in