Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 521

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 521
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 generating facility that utilizes a carbon-based fuel. Therefore, the Company believes that its New York State hosting
facilities, which primarily depended on hydroelectric power, will be able to comply with the law.

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, 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, AI technologies. As geopolitical tensions have increased, semiconductors associated with AI, including GPUs and associated
products, are increasingly the focus of export control restrictions proposed by stakeholders in 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, 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 serve demand abroad and could negatively and materially impact our business, revenue, and financial results. Export controls targeting
GPUs and 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