Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 85

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 85
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 security, accuracy, general purpose AI and foundation models, and proposes
fines for breach of up to 7% of worldwide annual turnover (revenue). Additionally, in September of 2022, the European Commission
proposed two Directives seeking to establish a harmonized civil liability regime for AI in the European Union, in order to facilitate
civil claims in respect of harm caused by AI and to include AI-enabled products within the scope of the European Union’s existing
strict liability regime. Once fully applicable, the EU AI Act will have a material impact on the way AI is regulated in the
European Union, and together with developing guidance and/or decisions in this area, may affect our use of AI and our ability to provide,
improve, or commercialize our cloud services, and could require additional compliance measures and changes to our operations and processes.

Moreover, the protectability
and ownership of intellectual property, including patent and copyright, resulting from the use of AI technologies has not been fully addressed
by courts or laws or regulations. To the extent we use AI technologies to generate or develop other technology, we may have difficulty
enforcing intellectual property rights in other such technology. In addition, the use or adoption of AI technologies into our offerings
may result in exposure to claims of copyright infringement or other intellectual property misappropriation based on the inputs or outputs
of such systems. As the legal and regulatory framework for AI and automated decision making evolves, we may not always be able to anticipate
how to respond to these laws or regulations, and compliance may adversely impact our operations and involve significant expenditure and
resources. Any failure by us to comply may result in significant liability, potential increases in civil claims against us, negative publicity,
an erosion of trust, and/or increased regulation and could materially adversely affect our business, results of operations, and financial
condition.

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We are subject to a highly evolving regulatory landscape and any adverse changes to or our colocation customers’ failure to comply with any laws or regulations could adversely affect our business, prospects or operations.

Our
customers’ businesses are subject to extensive laws, rules, regulations, policies and legal and regulatory guidance, including those
governing securities, commodities, exchange and transfer, data governance, data protection, cybersecurity and tax. Many of these legal
and regulatory regimes were adopted prior to the advent of the Internet, mobile technologies, AI and related technologies, cloud services
and data center operations. As a result, they do not contemplate or