Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 522

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 522
---

also apply to any future NVIDIA integrated circuit achieving certain peak performance and chip-to-chip I/O performance thresholds, as
well as any system or board that includes those circuits. There are also now licensing requirements to export a wide array of products,
including networking products, destined for certain end users and for certain end uses in China.

55

Management of these new
license and other requirements is complicated and time consuming. Our results and competitive position may be harmed if we are restricted
in offering our services, if customers purchase services from competitors, if customers develop their own internal solution, if we are
unable to provide contractual warranty or other extended service obligations, if the U.S. government does not grant licenses in a timely
manner or denies licenses to significant customers, or if we incur significant transition costs. Even if the U.S. government grants any
requested licenses, the licenses may be temporary or impose burdensome conditions that we cannot or choose not to fulfill. The new requirements
may benefit certain of our competitors, as the licensing process will make our pre-sale and post-sale technical support efforts more cumbersome
and less certain, and encourage customers to pursue alternatives to our services.

Issues in the development and use of AI
may result in reputational or competitive harm or liability.

We are beginning to build AI into our infrastructure
services, and we are also providing computing power for AI available for our customers to use in solutions that they build. We are providing
supporting/computing power to clients, including our strategic partners who develop AI systems. We expect this integration of AI into
our offerings and our business in general to grow. AI presents risks and challenges that could affect its adoption, and therefore our
business. AI algorithms or training methodologies may be flawed. Datasets may be overbroad, insufficient, or contain biased information.
Content generated by AI systems may be offensive, illegal, or otherwise harmful. Ineffective or inadequate AI development or deployment
practices by our Company or others could result in incidents that impair the acceptance of AI solutions or cause harm to individuals,
customers, or society, or result in our products and services not working as intended. Human review of certain outputs may be required.
As a result of these and other challenges associated with innovative technologies, our implementation of AI systems could subject us to
competitive harm, regulatory action, legal liability, including under new proposed legislation regulating AI in jurisdictions, new applications
of existing data protection, privacy, intellectual property, and other laws, and brand or reputational harm.