Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 197

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 197
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, that the hosting agreements provided many advantages as opposed to other alternative
arrangements. However, we have since been required to deploy or move our miners from their current hosting service providers to other
mining facilities, and we may be forced to accept less advantageous terms. Further, during relocation to a new mining facility, we will
not be able to operate our miners and therefore we will not be able to generate revenue.

From May until September
2022, power was offline at the Niagara Falls, New York facility hosted by Blockfusion, due to an explosion and subsequent fire. We have
estimated the loss of revenue at the Blockfusion site through September 13, 2022 to be approximately $3,200,000. Our methodology is based
on the historical rate for those impacted miners and the average bitcoin and ETH earned during the above period. Shortly after power was
restored, the Company and Blockfusion received a notice from the City of Niagara Falls, New York directing Blockfusion to cease and desist
its cryptocurrency mining activities at Blockfusion’s Niagara Falls facility. The loss of power at Blockfusion facilities has had
a material adverse effect on our operations. We relocated our miners from Blockfusion facilities to Digihost, Soluna and Bitdeer after
our service agreement with Blockfusion ended in September 2023.

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During the same time, a portion of our miners
were offline and power has only been partially used at our hosting partner Digihost’s facility at North Tonawanda, New York. Based
on the historical miner model hosted by Digihost, we calculated our loss at Digihost (based on a hash rate of 60 TH/s and power consumption
of 3000W) to be non-material in 2022. In 2023, we did not operate any miners at the Digihost’s North Tonawanda facility. 

As a result of the bankruptcy
filing by Compute North on September 22, 2022, as described above, we have experienced service disruptions.

If we are unable to secure
sufficient power supply from the current hosting service providers, or if the current hosting service providers are unable to supply sufficient
electric power, we may be forced to seek out alternative mining facilities. Should this occur, our operations may be disrupted, which
may have a material adverse effect on our operations.

If our Hosting
Agreements with the current hosting service providers in the U.S. and Canada are terminated, we may be forced