Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 165

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 165
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 proprietary software with open source software in a certain manner, we could be required
to release the source code of our proprietary software and make our proprietary software available under open source licenses. Open source
licensors may also decide to change the conditions on which they make their open-source technology available for our use.
Additionally, we may face claims from third parties claiming ownership of, or demanding the public release or free license of, the technology
and any other intellectual property that it 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.

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

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, the Company intends 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 and planned operations.
We rely upon trade secrets, trademarks, service marks, trade names, copyrights and other intellectual property rights and expect to license
the use of intellectual property rights owned and controlled by others. In addition, we have developed and may further develop certain
software applications for purposes of our operations. Our open source licenses may not afford us the protection we need to protect our
intellectual property.

Our
internal systems rely on software that is highly technical, and, if it contains undetected errors, our business could be adversely affected.

Our
internal systems rely on software that is highly technical and complex. In addition, our