Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 82

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 82
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 regulators and the public. Further, there have been limited precedents for the financial accounting
of crypto assets and related valuation and revenue recognition, and no official guidance has been provided by the FASB or the SEC. Uncertainties
or changes in regulatory or financial accounting standards could result in the need to change our accounting methods and restate our financial
statements and impair our ability to provide timely and accurate financial information, which could adversely affect our financial statements,
result in a loss of investor confidence, and more generally impact our business, operating results, and financial condition.

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Regulatory Risks

Regulatory restrictions that target AI, including, but not limited to, export restrictions may have a material adverse impact on our intended operations.

The
increasing focus on the strategic importance of AI technologies has already resulted in regulatory restrictions that target products and
services capable of enabling or facilitating AI, including semiconductors and related critical technologies, and may in the future result
in additional restrictions impacting some or all of our service offerings. Such restrictions could include additional unilateral or multilateral
export controls on certain products or technology, including, but not limited to, cloud service technologies. As geopolitical tensions
have increased, semiconductors associated with AI, including GPUs and associated products, are increasingly the focus of export control
restrictions implemented by the U.S. and its allies, and it is likely that additional unilateral or multilateral controls will be adopted.
Such controls may be very broad in scope and application, require us to obtain export licenses from government regulators, prohibit us
from exporting our services to any or all customers in one or more markets or could impose other conditions that limit our ability to
provide cloud services from or serve demand abroad and could negatively and materially impact our business, revenue, and financial results.
Export controls targeting GPUs and semiconductors associated with AI, could restrict our ability to export our technology, or services,
even though competitors may not be subject to similar restrictions, creating a competitive disadvantage for us and negatively impacting
our business and financial results. For example, in January 2025, the U.S. Department of Commerce issued its AI diffusion rules. These
rules impose worldwide limits on the transfer of AI model weights abroad and AI chip exports used to create compute clusters. Although
tier 1 countries are largely exempt from the rule’s restrictions, Iceland is not included on the tier 1 list. As a result, various
compute thresholds and export limits would apply with respect