Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 114

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 114
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 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. 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 open-source licensors
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-engineer
them to avoid infringement. This re-engineering process could require significant technology and product development resources, and we
may not be able to complete the process successfully. Failure to adequately manage these risks could result in operational disruptions,
legal liabilities, and adverse impacts on our business, results of operations, and financial condition.

Impact of advancements in AI on demand for AI and data centers may reduce the need for HPCs and AI-specific data center infrastructure, which could have an adverse effect on our business, results of operations, and financial condition.

The AI industry is rapidly
evolving, with continuous improvements in algorithms, software efficiencies, and hardware capabilities. Emerging AI technologies, such
as demonstrated by DeepSeek, may allow for complex AI operations to be executed with significantly less computing power than is currently
required. This reduction in computational intensity could decrease the demand for specialized computing and HPC data center services.
If AI developers are able to achieve the same