Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 486

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 486
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 may be unable
to raise additional capital needed to grow our business.

We need to raise additional
capital to expand our operations, pursue our growth strategies and to respond to competitive pressures or working capital requirements.
While we have an effective $500,000,000 at the market shelf registration statement, we may not be able to obtain additional debt or equity
financing on favorable terms, which could impair our growth and adversely affect our existing operations. The global economy, including
credit and financial markets, has experienced extreme volatility and disruptions, including diminished credit availability, rising interest
and inflation rates, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about
economic stability. Such macroeconomic conditions could also make it more difficult for us to incur additional debt or obtain equity financing.

If we raise additional
equity financing, our shareholders may experience significant dilution of their ownership interests, and the per share value of our Ordinary
Shares could decline. Furthermore, if we engage in debt financing, the holders of debt likely would have priority over the holders of
our Ordinary Shares on order of payment preference. We may be required to accept terms that restrict or limit our ability to, among other
things:

    ●
    Pay cash dividends to our stockholders, subject to certain limited exceptions;

    ●
    Redeem or repurchase our ordinary shares or other equity;

    ●
    Incur additional indebtedness;

    ●
    Permit liens on assets;

    ●
    Make certain investments (including through the acquisition of stock, shares, partnership or limited liability company interests, any loan, advance or capital contribution);

    ●
    Sell, lease, license, lend or otherwise convey an interest in a material portion of our assets; and

    ●
    Sell or otherwise issue ordinary shares or other capital stock subject to certain limited exceptions.

These restrictions may
limit our ability to obtain additional financing, withstand downturns in our business or take advantage of business opportunities.

36

Our mining operating
costs outpace our mining revenues, which could seriously harm our business or increase our losses.

Our mining operations
are costly, and our expenses may increase in the future. We intend to use funds on hand and from shares sold under an effective registration
statement to continue to purchase bitcoin mining machines if our operating costs are lower than the value of bitcoin. This expense increase
may not be offset by a corresponding increase in revenue. Our expenses may be greater than we anticipate, and our investments to make
our business