Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 446

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 446
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 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 reduced. If we underestimate our data center capacity requirements, we may not be able to service the required or expanding
needs of our existing customers and may be required to limit new customer acquisition, which could have a material adverse effect on
our business, financial condition and results of operations.

77

The
broader adoption, use, and commercialization of AI technology, and the continued rapid pace of developments in the AI field, are inherently
uncertain. Failure by our customers to use our cloud services to support AI use cases in their systems, or our ability to keep up with
evolving AI technology requirements and regulatory frameworks, could have a material adverse effect on our business, operating results,
financial condition, and future prospects.

As
part of our growth strategy, we seek to attract and acquire customers requiring high-performance computing, such as AI, machine
learning, and automated decision-making technologies, including proprietary AI algorithms and models (collectively,