Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 94

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 94
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We are beginning to build AI into our infrastructure
services, and we are also providing computing power for AI available for our customers to use in solutions that they build. We are providing
supporting/computing power to clients, including our strategic partners who develop AI systems. We expect this integration of AI into
our offerings and our business in general to grow. AI presents risks and challenges that could affect its adoption, and therefore our
business. AI algorithms or training methodologies may be flawed. Datasets may be overbroad, insufficient, or contain biased information.
Content generated by AI systems may be offensive, illegal, or otherwise harmful. Ineffective or inadequate AI development or deployment
practices by our Company or others could result in incidents that impair the acceptance of AI solutions or cause harm to individuals,
customers, or society, or result in our products and services not working as intended. Human review of certain outputs may be required.
As a result of these and other challenges associated with innovative technologies, our implementation of AI systems could subject us to
competitive harm, regulatory action, legal liability, including under new proposed legislation regulating AI in jurisdictions, new applications
of existing data protection, privacy, intellectual property, and other laws, and brand or reputational harm. Some AI scenarios present
ethical issues or may have broad impacts on society. If we provide supporting/computing AI services that have unintended consequences,
unintended usage or customization by our customers and partners, or are controversial because of their impact on human rights, privacy,
employment, or other social, economic, or political issues, we may experience brand or reputational harm, adversely affecting our business
and consolidated financial statements.

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