Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 179

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 179
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 advantages. Our competitors may also
be able to innovate and provide cloud services faster than we can or may foresee the need for products and services before we do.

We
are expanding our investment in research and developed companywide. This includes generative AI and continuing to integrate AI capabilities
into our products and services. Cloud service technology and services are highly competitive, rapidly evolving, and require significant
investment, including development and operational costs, to meet the changing needs and expectations of our existing users and attract
new users. Our ability to deploy certain cloud service technologies critical for our products and services and for our business strategy
may depend on the availability and pricing of third-party equipment and technical infrastructure. Additionally, other companies may develop
cloud service products and technologies that are similar or superior to our technologies or more cost-effective to deploy. Other companies
may also have, or in the future may obtain, patents or other proprietary rights that would prevent, limit, or interfere with our ability
to make, use, or sell our own cloud services.

Our
financial condition and operating results may also suffer if our cloud services are not responsive to the evolving needs and desires of
our customers and partners. As new and existing cloud service technologies continue to develop, competitors and new entrants may be able
to offer experiences that are, or that are seen to be, substantially similar to or better than ours. These technologies could reduce usage
of our products and services, and force us to compete in different ways and expend significant resources to develop and operate equal
or better products and services. Competitors’ success in providing compelling products and services or in attracting and retaining
customers and partners could harm our financial condition and operating results.

Our ongoing investment in new cloud services,
and technologies is inherently risky, and could divert management attention and harm our business, financial condition, and operating
results.

Our
ongoing investments that we are making in research and development augment our cloud service capabilities, reflect our ongoing efforts
to innovate and provide products and services that are helpful to our customers. However, these investments may not be commercially viable
or may not result in an adequate return of capital. These endeavors involve significant risks and uncertainties, including diversion of
resources and management attention from current operations, different monetization models, and the use of alternative investment, governance,
or compensation structures that may fail to adequately align incentives across the company or otherwise accomplish their objectives.

Regulatory restrictions that target AI,
including, but not limited to, export restrictions may have a material adverse impact on our