Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 216

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 216
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 enough
processing power to gain control of the blockchain, which may adversely affect an investment in our Ordinary Shares. Such lack of controls
and responses to such circumstances could have a material adverse effect on our ability to continue as a going concern or to pursue our
new strategy at all, which could have a material adverse effect on our business, prospects or operations and potentially the value of
any bitcoin or other digital assets we mine or otherwise acquire or hold for our own account, and harm investors.

We are subject
to risks associated with our need for significant electrical power. Government regulators may potentially restrict the ability of electricity
suppliers to provide electricity to mining operations, such as ours.

The operation of a bitcoin
or other digital asset mine can require massive amounts of electrical power. Further, our mining operations can only be successful and
ultimately profitable if the costs, including electrical power costs, associated with mining a bitcoin are lower than the price of a bitcoin.
As a result, any mine we establish can only be successful if we can obtain sufficient electrical power for that mine on a cost-effective
basis, and our establishment of new mines requires us to find locations where that is the case. There may be significant competition for
suitable mine locations, and government regulators may potentially restrict the ability of electricity suppliers to provide electricity
to mining operations in times of electricity shortage or may otherwise potentially restrict or prohibit the provision or electricity to
mining operations.

47

Any shortage of electricity
supply or increase in electricity cost in a jurisdiction may negatively impact the viability and the expected economic return for bitcoin
mining activities in that jurisdiction. In addition, the significant consumption of electricity may have a negative environmental impact,
including contribution to climate change, which may give rise to public opinion against allowing the use of electricity for bitcoin mining
activities or government measures restricting or prohibiting the use of electricity for bitcoin mining activities.

We may not adequately
respond to price fluctuations and rapidly changing technology, which may negatively affect our business.

Competitive conditions
within the digital asset industry require that we use sophisticated technology in the operation of our business. The industry for blockchain
technology is characterized by rapid technological changes, new product introductions, enhancements and evolving industry standards. New
technologies, techniques or products could emerge that might offer better performance than the software and other technologies we currently
utilize, and we may have to manage transitions to these new technologies to remain competitive. We may not be successful, generally or
relative to our competitors in the digital asset industry, in timely implementing