Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 153

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 153
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 or interruption of the energy supply.

Establishing
data centers in remote areas may adversely affect our ability to retain staff and increase our compensation costs.

If
we establish data centers in areas with lower populations such as Iceland or remote parts of Canada, recruiting and retaining the necessary
staff to operate our locations may pose a challenge. When we encounter a relatively low population, the pool of available employees is
limited. In addition, some employers have offered significantly higher wages in order to fill vacant positions. This may adversely affect
our ability to attract and retain qualified personnel and may increase our employee costs if we have to increase the compensation we
pay in response to the market.

WhiteFiber’s
data centers could be adversely impacted by climate change.

Severe
weather events, such as tornadoes, hurricanes, rain, drought, fire, ice and snowstorms, and high-and low-temperature extremes,
occur in regions in which WhiteFiber operates and maintains infrastructure. WhiteFiber’s principal data centers in Iceland and
Canada are designed to provide year-round cool weather conditions. Nevertheless climate change could change the frequency and severity
of weather events, which may create physical and financial risks to WhiteFiber. Such risks could have an adverse effect on WhiteFiber’s
financial condition, results of operations and cash flows. Increases in severe weather conditions or extreme temperatures may cause infrastructure
construction projects to be delayed or canceled and limit resources available for such projects resulting in decreased revenue or increased
project costs. In addition, drought conditions could restrict the availability of water supplies or limit the ability to obtain water
use permits, inhibiting the ability to conduct operations. To date, neither of the Company’s WhiteFiber 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.

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