Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 169

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 169
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 risks.

Our operations require
significant capital investment to purchase and maintain the property and equipment required to provide specialized infrastructures
to support generative AI work streams. In addition, WhiteFiber’s operations include a significant level of fixed and
semi-fixed costs. Consequently, we will rely on capital markets, as sources of liquidity for capital requirements for growth. If we
are unable to access capital at competitive rates, the ability to implement business plans, make capital expenditures or pursue
acquisitions it would otherwise rely on for future growth may be adversely affected. Market disruptions may increase the cost of
borrowing or adversely affect our ability to access one or more financial markets. Such market disruptions could include:

●A
significant economic downturn.

●The
financial distress of unrelated industry leaders in the same line of business.

●Deterioration
in capital market conditions.

●Turmoil
in the financial services industry.

●Volatility
in GPU prices.

●Terrorist
attacks.

●War.

●Cyberattacks.

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 shareholders, subject to certain limited exceptions;

●Redeem
or repurchase our ordinary shares or other equity;

20

●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.

We have an evolving business model which
is subject to various uncertainties.

As cloud services and HPC
data centers become more widely available, we expect the services and products associated with them to evolve. In order to stay current
with the industry, our business model requires us to evolve as well. From time to time, we have modified and will continue to modify aspects