Risk Factors Update Summary

• Industry events, including significant activity by regulators against digital asset entities, have led to extreme price volatility in digital asset markets.
• The company's operations in Texas are particularly exposed to changes in the regulatory environment, market conditions, and natural disasters.
• The company does not engage in hedging activities, which could expose it to substantial bitcoin price decreases.
• The company's exposure to industry participants who filed for Chapter 11 bankruptcy has increased.
• The ongoing military conflict between Russia and Ukraine, including sanctions, could impact the company's financial condition.
• The company's exposure to cybersecurity threats, including cyberattacks and data breaches, could harm its operations and financial condition.
• The company lacks insurance coverage for its bitcoin holdings, relying on custodians' coverage.
• Geopolitical tensions, military conflicts, and acts of war could adversely affect the company's business.
• The company's reliance on third-party service providers for critical equipment and components poses a risk of disruptions.
• The company may need to raise additional capital due to geopolitical tensions and economic uncertainty.
• The company faces risks from geopolitical conflicts, terrorism, natural disasters, and pandemics affecting operations.
• The company's financial accounting for bitcoin and cryptocurrency assets is impacted by new FASB guidance.
• The company's financial controls and reporting were affected by a material weakness identified in 2023.
• The company's strategic direction and decisions may be influenced by its controlling shareholder, Bitfury Group Top HoldCo.