Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 167

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 167
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 in many cases,
are being conducted by sophisticated, well-funded, and organized groups and individuals, including state actors. The techniques used to
obtain unauthorized, improper, or illegal access to systems and information (including customers and partners’ personal data, AI
algorithms, disable or degrade services, or sabotage systems are constantly evolving, may be difficult to detect quickly, and often are
not recognized or detected until after they have been launched against a target. These attacks may occur on our cloud services or those
of our third-party service providers or partners. Certain types of cyberattacks could harm us even if our systems are left undisturbed.
For example, attacks may be designed to deceive employees and service providers into releasing control of our systems to a hacker, while
others may aim to introduce computer viruses or malware into our cloud services with a view to stealing confidential or proprietary data.
Additionally, certain threats are designed to remain dormant or undetectable until launched against a target and we may not be able to
implement adequate preventative measures.

Although we have developed
systems and processes designed to protect the data we manage, prevent data loss and other security breaches, effectively respond to known
and potential risks, and expect to continue to expend significant resources to bolster these protections, there can be no assurance that
these security measures will provide absolute security or prevent breaches or attacks. We have experienced from time to time, and may
experience in the future, breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities,
or other irregularities. Unauthorized parties have attempted, and we expect that they will continue to attempt, to gain access to our
systems and facilities, as well as those of our customers, partners, and third-party service providers, through various means, including
hacking, social engineering, phishing, and attempting to fraudulently induce individuals (including employees, service providers, and
our customers) into disclosing usernames, passwords, payment card information, or other sensitive information, which may, in turn, be
used to access our cloud services. Threats can come from a variety of sources, including criminal hackers, hacktivists, state-sponsored
intrusions, industrial espionage, and insiders. Certain threat actors may be supported by significant financial and technological resources,
making them even more sophisticated and difficult to detect. As a result, our costs and the resources we devote to protecting against
these advanced threats and their consequences may continue to increase over time.

19

Our operations may be negatively