Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 95

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 95
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 usage or customization by our customers and partners, or are controversial because of their impact on human rights, privacy,
employment, or other social, economic, or political issues, we may experience brand or reputational harm, adversely affecting our business
and consolidated financial statements.

The regulatory and legislative developments related to climate change, may materially adversely affect our brand, reputation, business, operating results and financial condition.

A number of governments or governmental bodies
have introduced or are contemplating legislative and regulatory changes in response to various climate change interest groups and the
potential impact of climate change. Given the very significant amount of electrical power required to operate digital asset mining machines,
as well the environmental impact of mining for the rare earth metals used in the production of mining servers, the digital asset mining
industry may become a target for future environmental and energy regulation. For example, in June and July of 2021, the Chinese government
prohibited the operation of mining machines and supply of energy to mining businesses, citing concerns regarding high levels of energy
consumption, which resulted in our suspension of mining operations in China. U.S. legislation and increased regulation regarding climate
change could impose significant costs on us and our suppliers, including costs related to increased energy requirements, capital equipment,
environmental monitoring and reporting, and other costs to comply with such regulations. Specifically, imposition of a carbon tax or other
regulatory fee in a jurisdiction where we operate or on electricity that we purchase could result in substantially higher energy costs,
and due to the significant amount of electrical power required to operate digital asset mining machines, could in turn put our facilities
at a competitive disadvantage. Any future climate change regulations could also negatively impact our ability to compete with companies
situated in areas not subject to such limitations. Given the political significance and uncertainty around the impact of climate change
and how it should be addressed, we cannot predict how legislation and regulation will affect our financial condition, operating performance
and ability to compete. Furthermore, even without such regulation, increased awareness and any adverse publicity in the global marketplace
about potential impacts on climate change by us or other companies in our industry could harm our reputation. Any of the foregoing could
have a material adverse effect on our financial position, results of operations and cash flows.

A particular digital asset’s status as a “security” in any relevant jurisdiction is subject to a high degree of uncertainty and if a regulator disagrees with our characterization of a digital asset, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, which may adversely affect