Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 117

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 117
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 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 services 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 or result inaccurate results
or hallucinations. Datasets may be overbroad, insufficient, or contain biased information that could result in algorithmic discrimination.
Content generated by AI systems may be offensive, illegal, or otherwise harmful or infringing of the rights of third parties. Ineffective
or inadequate AI development or deployment practices by others could result in incidents that impair the acceptance of AI solutions or
cause harm to individuals, customers, or society, or result in our services not working as intended. Human review of certain outputs or
decisions may be required. As a result of these and other challenges associated with innovative technologies, our implementation of cloud
services 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/cloud 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 combined financial statements as well as potential legal liability.

Risks Related to our Ordinary Shares

The
market price of our Ordinary Shares trade may fluctuate significantly due to a number of factors, some of which may be beyond our control.
The increased volatility of our stock price may have a material adverse effect on our business, financial condition and results of operations.
These factors include:

| ● | actual or anticipated fluctuations in our financial condition and operating results or those of companies perceived to be similar to us; |

| ● | actual or anticipated changes in our growth rate relative to our competitors; |

| ● | commercial success and market acceptance of AI infrastructure services; |

| ● | actions by our competitors, such as new business initiatives, acquisitions and divestitures; |

| ● | strategic transactions undertaken by us; |

| ● | additions or departures of key personnel; |

| ● | prevailing economic conditions; |

|