Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 471

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 471
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 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, cloud service 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.

26

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.

Issues in the development and use of AI
may result in reputational or competitive harm or liability.

We
continue to incorporate AI into our cloud services and infrastructure, and we are also providing computing power for our customers to
use in solutions that they build. We are providing supporting/computing power to clients, including our strategic partners who develop
AI systems. We expect this integration of AI into