Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 85

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 85
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 may have difficulty
enforcing intellectual property rights in other such technology. In addition, the use or adoption of AI technologies into our offerings
may result in exposure to claims of copyright infringement or other intellectual property misappropriation based on the inputs or outputs
of such systems. As the legal and regulatory framework for AI and automated decision making evolves, we may not always be able to anticipate
how to respond to these laws or regulations, and compliance may adversely impact our operations and involve significant expenditure and
resources. Any failure by us to comply may result in significant liability, potential increases in civil claims against us, negative publicity,
an erosion of trust, and/or increased regulation and could materially adversely affect our business, results of operations, and financial
condition.

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We are subject to a highly evolving regulatory landscape and any adverse changes to or our colocation customers’ failure to comply with any laws or regulations could adversely affect our business, prospects or operations.

Our
customers’ businesses are subject to extensive laws, rules, regulations, policies and legal and regulatory guidance, including those
governing securities, commodities, exchange and transfer, data governance, data protection, cybersecurity and tax. Many of these legal
and regulatory regimes were adopted prior to the advent of the Internet, mobile technologies, AI and related technologies, cloud services
and data center operations. As a result, they do not contemplate or address unique issues associated with AI, are subject to significant
uncertainty, and vary widely across U.S., Iceland and Canada. These legal and regulatory regimes, including the laws, rules and regulations
thereunder, evolve frequently and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another,
and may conflict with one another.

Moreover,
the complexity and evolving nature of our business and the significant uncertainty surrounding the regulation of AI, requires us to exercise
our judgment as to whether certain laws, rules and regulations apply to us or our customers, and it is possible that governmental bodies
and regulators may disagree with our or our customers’ conclusions. To the extent we or our customers have not complied with such
laws, rules and regulations, we could be subject to significant fines and other regulatory consequences, which could adversely affect
our business, prospects or financial condition.

Ongoing
and future regulatory actions, such as controls on the export of products and technology for AI uses, could effectively prevent our customers’
and our ongoing or planned co-hosting operations, limiting or preventing future revenue generation by us or