Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 233

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 233
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 protection, advertising, and online content. Laws
in several jurisdictions, including EU Member State laws under the European Electronic Communications Code, increasingly define certain
of our services as regulated telecommunications services. This trend may continue and will result in these offerings being subjected to
additional data protection, security, law enforcement surveillance, and other obligations. Regulators and private litigants may assert
that our collection, use, and management of customer data and other information is inconsistent with their laws and regulations, including
laws that apply to the tracking of users via technology such as cookies. New environmental, social, and governance laws and regulations
are expanding mandatory disclosure, reporting, and diligence requirements. Legislative or regulatory action relating to cybersecurity
requirements may increase the costs to develop, implement, or secure our products and services. Compliance with evolving digital accessibility
laws and standards will require engineering and is important to our efforts to empower all people and organizations to achieve more. Legislative
and regulatory action is emerging in the areas of AI and content moderation, which could increase costs or restrict opportunity. For example,
in the EU, an AI Act is being considered, and may entail increased costs or decreased opportunities for the operation of our AI services
in the European market.

The regulatory
and legislative developments related to climate change, may materially adversely affect our brand, reputation, business, operating results
and financial condition.

A number of governments
or governmental bodies have introduced or are contemplating legislative and regulatory changes in response to various climate change interest
groups and the potential impact of climate change. Given the very significant amount of electrical power required to operate digital asset
mining machines, as well the environmental impact of mining for the rare earth metals used in the production of mining servers, the digital
asset mining industry may become a target for future environmental and energy regulation. For example, in June and July of 2021, the Chinese
government prohibited the operation of mining machines and supply of energy to mining businesses, citing concerns regarding high levels
of energy consumption, which resulted in our suspension of mining operations in China. U.S. legislation and increased regulation regarding
climate change could impose significant costs on us and our suppliers, including costs related to increased energy requirements, capital
equipment, environmental monitoring and reporting, and other costs to comply with such regulations. Specifically, imposition of a carbon
tax or other regulatory fee in a jurisdiction where we operate or on electricity that we purchase could result in substantially higher
energy costs, and due to the significant amount of electrical power required to operate digital asset mining