Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 330

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 3
Chunk 330
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 to evolve and change. As demand continues for AI services, AI providers, including
our customers, have sought increased compute capacity to enable advancements in their AI models and service the demands of end users.
We cannot predict whether additional computing power will continue to be required to develop larger, more powerful AI models, or if the
practical limits of AI technology will plateau in the future regardless of available compute capacity. Further, there have been recent
advancements in AI technology, including open-source AI models, that may lead to compute and other efficiencies that may impact
the demand for AI services, including our platform, solutions, and services, which may adversely impact our revenue and profitability.
In the event that existing scaling laws do not continue to apply as they have in the past, demand by our customers for compute resources,
including our solutions and services, may not continue to increase over time, or may decrease if overall demand for AI is impacted by
a lack of further technological development. If we are unable to keep up with the changing AI landscape or in developing services to
meet our customers’ evolving AI needs, or if the AI landscape does not develop to the extent we or our customers expect, our business,
operating results, financial condition, and future prospects may be adversely impacted.

Additionally,
we may incur significant costs and experience significant delays in developing new solutions and services or enhancing our current platform
to adapt to the changing AI landscape, and may not achieve a return on investment or capitalize on the opportunities presented by demand
for AI solutions. Moreover, while AI adoption is likely to continue and may accelerate, the long-term trajectory of this technological
trend is uncertain. Further, market acceptance, understanding, and valuation of solutions and services that incorporate AI technologies
are uncertain and the perceived value of AI Technologies used and/or provided by our customers could be inaccurate. If AI is not broadly
adopted by enterprises to the extent we expect, or if new use cases do not arise, then our opportunity may be smaller than we expect.
Further, if the consumer perception and perceived value of AI Technologies is inaccurate this could have a material adverse effect on
our customers, which in turn could have a material adverse effect on our business, operating results, financial condition, and future
prospects.

Concerns
relating to the responsible use by our customers of new and evolving technologies, such as AI, which are supported by our platform, may
result in collateral reputational harm to us. AI may pose emerging ethical issues and if our