Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 84

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 84
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 and automated decision making, has come under increased regulatory scrutiny, and governments and regulators in the
United States, European Union, and other places have announced the need for greater regulation regarding the use of machine learning and
AI generally. New laws, guidance, and decisions in this area may limit WhiteFiber’s cloud services business, or require the Company
to make changes to its clouds service technology and infrastructure and our operations that may decrease our operational efficiency, result
in an increase to operating costs and/or hinder our ability to provide or improve our cloud services.

For example, certain global
privacy laws regulate the use of automated decision making and may require that the existence of automated decision making be disclosed
to the data subject with a meaningful explanation of the logic used in such decision making in certain circumstances, and that safeguards
must be implemented to safeguard individual rights, including the right to obtain human intervention and to contest any decision. Other
global privacy laws allow individuals the right to opt out of certain automated processing of personal data and create other requirements
that impact automated decision-making. At the federal level, the scope and extent of regulation of AI is uncertain, but the National Institute
of Standards and Technology issued the NIST-AI-600-1, AI Risk Management Framework: Generative Artificial Intelligence Profile which will
likely remain a standard that regulators may consider for determining whether companies have adequate assessed the risk of use of AI.

A number of states have issued
or proposed laws that require developers and deployers of high risk AI tools and systems to conduct risk assessments and take steps to
avoid algorithmic discrimination. In addition, these laws provide consumers with the right to pre-use notice and certain rights to opt-out
of use of such tools for certain kinds of automated decisions and to seek human review for adverse decisions. These laws could impose
additional obligations on us to comply with such requirements and limit the Company’s ability to use AI and automated decision making.
Violations of such laws could expose the Company to fines and sanctions and consumer class actions.

In the European Union, the
EU AI Act establishes a comprehensive, risk-based governance framework for AI in the EU market. The EU AI Act entered in force
on August 1, 2024, and the majority of the substantive requirements will apply two years later (beginning 2026). The EU AI Act will
apply to companies that develop, use and/or provide AI in the European Union and includes requirements around transparency, conformity
assessments and monitoring, risk assessments, human oversight,