Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 46

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 46
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 of our data centers in Iceland or Canada have experienced any material impacts to its financial condition, results of operations
or cash flows due to the physical effects of climate change.

The insurance industry may
be adversely affected by severe weather events, which may impact availability of insurance coverage, insurance premiums and insurance
policy terms.

Our failure to accurately predict our facilities’ and data centers’ requirements could have a material adverse effect on our business, financial condition and results of operations.

The costs of building out,
leasing and maintaining our facilities and data centers constitute a significant portion of our capital and operating expenses. In order
to manage growth and ensure adequate capacity for our new and existing customers while minimizing unnecessary excess capacity costs, we
continuously evaluate our short- and long-term data center capacity requirements. If we overestimate our business’ capacity requirements
or the demand for our services and therefore secure excess data center capacity, our operating margins could be materially reduced. If
we underestimate our data center capacity requirements, we may not be able to service the required or expanding needs of our existing
customers and may be required to limit new customer acquisition, which could have a material adverse effect on our business, financial
condition and results of operations.

Even if we have additional space available for lease at any one of our data centers, our ability to lease this space to existing or new customers could be constrained by our ability to provide sufficient electrical power.

As
current and future customers increase their power footprint in our data centers over time, the corresponding reduction in available power
could limit our ability to increase occupancy rates or network density within our existing or future data centers. Furthermore, our aggregate
maximum contractual obligation to provide power and cooling to our customers may exceed the physical capacity at such data centers if
customers were to quickly increase their demand for power and cooling. If we are not able to increase the available power and/or cooling
or move the customer to another location within our data centers with sufficient power and cooling to meet such demand, we could lose
the customer as well as be exposed to liability under our customer agreements. In addition, our power and cooling systems are difficult
and expensive to upgrade. Accordingly, we may not be able to efficiently upgrade or change these systems to meet new demands without incurring
significant costs that we may not be able to pass on to our customers. Any such material loss of customers, liability or additional costs
could adversely affect our business, financial condition and results of operations.

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Digital Assets Related Risks