Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 83

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 83
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 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 to the transfer or export of AI technology to Iceland from the U.S., which
would make it more difficult and expensive to continue to maintain or grow our clouds services business in Iceland. 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. See “Changes in tariffs or import restrictions could have a material adverse effect on our business, financial condition and results of operations.”

Management
of the requirements of the supply chain 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 cloud services, if
we are unable to provide contractual warranty or other extended service obligations.

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Our cloud services business is subject to complex and evolving U.S. and foreign laws and regulations regarding AI, machine learning, and automated decision making.

In recent years the use of
machine learning, AI