Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 146

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 146
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, AI hardware, and necessary infrastructure components, have been affected due to constraints on globalized
supply chains. These constraints extend to procuring construction materials and specialized electricity distribution equipment required
to develop HPC and AI facilities. Efforts to mitigate delivery delays are ongoing to avoid materially impacting deployment schedules;
however, there are no assurances that such mitigation efforts will continue to be successful. To help address global supply logistics
and pricing concerns, we have implemented proactive measures such as procuring and holding required materials. We continuously monitor
developments in the global supply chain which is necessary to assess their potential impact on the Company’s expansion plans within
the HPC and AI markets.

Regulatory Landscape

The regulatory landscape surrounding
HPC data centers and cloud services is evolving rapidly, and we anticipate increased scrutiny and potential regulation in the near- and
long-term. These developments may have a material adverse effect on our business and financial condition.

There are growing concerns
about the ethical implications and potential misuse of AI and machine learning. Governments and regulatory bodies are considering measures
to ensure the responsible development and deployment of AI systems, including transparency, accountability, and fairness guidelines. We
are closely monitoring these developments and will dedicate our best efforts to adhere to any upcoming regulations or industry best practices.

As a company operating at
the intersection of data center, cloud and HPC hosting services, we are committed to maintaining a proactive and adaptive approach to
regulatory compliance. We closely monitor legislative and regulatory developments and engage in dialogue with relevant stakeholders to
ensure our business practices align with the evolving legal and regulatory framework. Despite the uncertainties posed by the changing
regulatory landscape, we remain committed to delivering innovative and responsible solutions in the data center, cloud and HPC hosting
markets while prioritizing compliance and risk management. However, if we fail to comply with applicable laws and regulations, we may
be subject to significant liabilities, including fines and penalties, and our business, financial condition, or results of operations
could be adversely affected.

Investment Canada Act 

All acquisitions of control
(whether direct or indirect) of Canadian businesses by non-Canadians may be subject to review on grounds that the investment could be
injurious to national security. Following the filing of the required Investment Canada Act notification in respect of our acquisition
of Enovum (the “Transaction”), we received written notification from the Minister of Innovation, Science and Industry of Canada
(the “Minister”), that the Transaction may be subject to a national security review. Following review information we