Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 113

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 113
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 accounting standards undergo significant changes, our operating results could be adversely affected.

The accounting rules and regulations that we must
comply with are complex and subject to interpretation by the Financial Accounting Standards Board (“FASB”), the SEC, and various
bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have
a significant effect on our reported financial results, and may even affect the reporting of transactions completed before the announcement
or effectiveness of a change. Recent actions and public comments from the FASB and the SEC have focused on the integrity of financial
reporting and internal controls. In addition, many companies’ accounting policies are being subject to heightened scrutiny by regulators
and the public. Further, there have been limited precedents for the financial accounting of cryptoassets and related valuation and revenue
recognition, and no official guidance has been provided by the FASB or the SEC. Uncertainties or changes in regulatory or financial accounting
standards could result in the need to change our accounting methods and restate our financial statements and impair our ability to provide
timely and accurate financial information, which could adversely affect our financial statements, result in a loss of investor confidence,
and more generally impact our business, operating results, and financial condition.

Risks Involving Intellectual Property

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 intend to 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