Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 30

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 30
---
 million for Fiscal 2023, which included $6.6 million impairment of
digital assets. We had negative cash flows for our operating activities of $13.0 million for Fiscal 2024. We had positive cash flows
from our operating activities of $1.1 million for Fiscal 2023. Negative cash flow during Fiscal 2024 resulted, in part, from gains
on digital assets of $55.7 million and revenue from bitcoin mining of $58.6 million, offset by depreciation and amortization
expenses of $32.3 million. Positive cash flow during Fiscal 2023 resulted, in part, from gain from exchange of digital assets of
$18.8 million offset by $6.6 million impairment of digital assets.

We cannot assure you our business model will allow
us to continue to generate positive cash, given our substantial expenses in relation to our revenue at this stage of our Company’s
development. Our inability to offset our expenses with adequate revenue will adversely affect our liquidity, financial condition and results
of operations. Although we have adequate cash on hand and have drawn down on an effective $500 million at-the-market shelf registration
statement and anticipated cash flows from operating activities are expected to be sufficient to meet our anticipated working capital requirements
and capital expenditures in the ordinary course of business for the next 12 months, we cannot assure you that will be the case. We expect
to need additional cash resources in the future as we wish to pursue opportunities for investment, acquisition, capital expenditure or
similar actions in order to implement our business plan. The issuance and sale of additional equity has resulted and will continue to
result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result
in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms
acceptable to us, if at all.

Cloud Service Development Related Risks

Our cloud service technology and infrastructure may not operate properly or as we expect them to, which could cause us to incur fines and monetary penalties, adversely affecting our business, results of operations, and financial condition.

The continuous development,
maintenance, and operation of our cloud service technology and infrastructure is expensive and complex and may involve unforeseen difficulties,
including material performance problems, undetected defects, or errors, particularly with new capabilities and system integrations. We
may encounter technical obstacles, and it is possible that we may discover additional problems that prevent our technology and systems