Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 175

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 175
---
 corrective action.

23

Regulators may limit our ability
to develop or implement our cloud services technology and infrastructure and/or may eliminate or restrict the confidentiality of our technology,
which could have a material adverse effect on our financial condition and results of operations.

Our future success depends
on our ability to continue to develop and implement our cloud services technology, and to maintain the confidentiality of this technology.
Changes to existing regulations, their interpretation or implementation, or new regulations could impede our use of this technology, or
require that we disclose our technology to our competitors, which could impair our competitive position and result in a material adverse
effect on our business, results of operations, and financial condition.

We use certain open source technology in
our business. We may face claims from open source licensors claiming ownership of, or demanding the release of, the technology and any
other intellectual property that we developed using or derived from such open-source technology.

We utilize a combination of
open-source and licensed third-party technologies in the development and operation of our cloud services. While open-source technologies
enable rapid development and cost efficiencies, they also pose potential risks, such as security vulnerabilities, lack of long-term support,
and legal risks related to licensing terms. Similarly, reliance on licensed third-party technologies may expose us to risks associated
with changes in licensing terms, costs, or discontinuation of the licensed products.

We will continue to use open-source
technology in the future. There is a risk that open-source technology licenses could be construed in a manner that imposes
unanticipated conditions or restrictions on our ability to offer our products. Open source licensors may also decide to change the conditions
on which they make their open-source technology available for our use. Additionally, we may face claims from open-source licensors
claiming ownership of, or demanding the public release or free license of, the technology and any other intellectual property that it
developed using or derived from such open source technology. The terms of many open source licenses have not been interpreted by
United States courts. There is a risk that these licenses could be construed in a way that could impose unanticipated conditions
or restrictions on our ability to commercialize our services . These claims could result in litigation and could require that we make
our technology freely available, purchase a costly license or cease offering the implicated products or services unless and until we can
re-engineer them to avoid infringement. This re-engineering process could require significant technology and product development resources,
and we