Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 93

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 93
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 semiconductors associated
with AI, which are increasingly likely, would restrict our ability to export our technology, 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.
Increasing use of economic sanctions may also impact demand for our services, negatively impacting our business and financial results.
Additional unilateral or multilateral controls are also likely to include deemed export control limitations that negatively impact the
ability of our research and development teams to execute our roadmap or other objectives in a timely manner. Additional export restrictions
may not only impact our ability to serve overseas markets, but also provoke responses from foreign governments, including China, that
negatively impact our ability to provide our services to customers in all markets worldwide, which could also substantially reduce our
revenue.

During the third quarter of fiscal year 2023,
the U.S. government announced new export restrictions and export licensing requirements targeting China’s semiconductor and supercomputing
industries. These restrictions impact exports of certain chips, as well as software, hardware, equipment, and technology used to develop,
produce, and manufacture certain chips, to China (including Hong Kong and Macau) and Russia. The new license requirements also apply to
any future NVIDIA integrated circuit achieving certain peak performance and chip-to-chip I/O performance thresholds, as well as any system
or board that includes those circuits. There are also now licensing requirements to export a wide array of products, including networking
products, destined for certain end users and for certain end uses in China.

Management of these new license and other requirements
is complicated and time consuming. Our results and competitive position may be harmed if we are restricted in offering our services, if
customers purchase services from competitors, if customers develop their own internal solution, if we are unable to provide contractual
warranty or other extended service obligations, if the U.S. government does not grant licenses in a timely manner or denies licenses to
significant customers, or if we incur significant transition costs. Even if the U.S. government grants any requested licenses, the licenses
may be temporary or impose burdensome conditions that we cannot or choose not to fulfill. The new requirements may benefit certain of
our competitors, as the licensing process will make our pre-sale and post-sale technical support efforts more cumbersome and less certain,
and encourage customers to pursue alternatives to our services.

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Issues in the development and use of AI may result in reputational or competitive harm or liability