Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 114

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 114
---
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 or better performance outcomes with more energy-efficient, cost-effective, or less resource-intensive
technologies, they may adjust their need for large-scale, high capacity data center solutions. This shift could have an adverse effect
on our business, results of operations, and financial condition. We continuously monitor industry trends and invest in innovation to mitigate
these risks. However, there is no assurance that we will be able to anticipate or respond effectively to such changes, which could have
an adverse effect on our business, results of operations, and financial condition.

We rely upon licenses of third-party intellectual property rights and may be unable to protect our software codes.

We
actively use specific hardware and software for our cloud services and colocation data center operations. In certain cases, source code
and other software assets may be subject to an open source license, as much technology development underway in this sector is open source.
For these works, we intend to adhere to the terms of any license agreements that may be in place.

We
do not currently own, and do not have any current plans to seek, any patents in connection with our existing