Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 457

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 457
---
 order to replace many of the systems and functions Bit Digital has provided. WhiteFiber may experience temporary
interruptions in business operations if it cannot transition effectively to its own stand-alone systems and functions, which could
disrupt its business operations and have a material adverse effect on profitability. In addition, WhiteFiber’s costs for the operation
of these systems may be higher than the amounts reflected in the combined financial statements.

Risks
Involving Intellectual Property

We
use certain open source technology in our business. We may face claims from third parties 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. By the terms
of certain open source licenses, if we combine our proprietary software with open source software in a certain manner, we could be required
to release the source code of our proprietary software and make our proprietary software available under open source licenses. 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 third parties 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