Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 142

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 142
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 demand over that period. Based on our knowledge of the industry, we believe we are leaders in the markets
that are critical for these capabilities, and, as a result, we believe we are well positioned to benefit from the growth of this sector.

Data Centers

According
to Precedence Research, the global data center market is estimated to be valued at $125 billion in 2024 and is anticipated to reach $365
billion by 2034, expanding at a CAGR of 11.4%. As of 2023, the data center services segment, which provides a range of offerings including
consulting, maintenance, and management to optimize the performance and reliability of data center infrastructure, represented about 34.2%
of the industry. The solutions segment, which refers to the technological offerings that
fulfill key functions within data center infrastructure, comprised about 65.8% of the industry. The solutions segment represents both
hardware and software elements, encompassing servers, storage systems, networking equipment, and management software.

The data center market is
propelled by growing demands for cloud computing services, big data analytics, and digital transformation. Key contributors to this dynamic
landscape are technology firms, real estate developers, and service providers. Together, they play a vital role in the ongoing evolution
of data center infrastructure, adapting to meet the expanding requirements of the digital era and ensuring the seamless operation of critical
digital services across various industries. The increasing global demand for cloud computing, where we compete as a cloud services provider,
is a major driver of data centers, underlining the inherent synergies between our businesses.

Cloud Services

According to Roots Analysis,
the public cloud market size is projected to grow from $567 billion in 2024 to $3.4 trillion by 2035, representing a CAGR of 17.6% during
the forecast period. The major factors driving the cloud services market growth are increasing digital transformation across businesses,
growing internet and mobile device adoption across the globe, and, most notably, increased usage of large data sets. Moreover, cloud services
are favored by customers due to low capital investment, resource scalability, and a high degree of accessibility. The rise of the system
of connected devices, edge computing, 5G, and real-time analytics driven by AI and ML is anticipated to increase the market value of cloud
technology across different businesses.

5

Sustainability

Sustainability and energy
efficiency are increasingly important considerations for the data center and cloud services markets