Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 23

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 23
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 applications, and infrastructure.

Cybersecurity incidents and
attacks upon systems across a variety of industries, including cloud services, are increasing in their frequency, persistence, and sophistication,
and, in many cases, are being conducted by sophisticated, well-funded, and organized groups and individuals, including state actors. The
techniques used to obtain unauthorized, improper, or illegal access to systems and information (including customers and partners’
personal data, AI algorithms, disable or degrade services, or sabotage systems are constantly evolving, may be difficult to detect quickly,
and often are not recognized or detected until after they have been launched against a target. These attacks may occur on our cloud services
or those of our third-party service providers or partners. Certain types of cyberattacks could harm us even if our systems are left undisturbed.
For example, attacks may be designed to deceive employees and service providers into releasing control of our systems to a hacker, while
others may aim to introduce computer viruses or malware into our cloud services with a view to stealing confidential or proprietary data.
Additionally, certain threats are designed to remain dormant or undetectable until launched against a target and we may not be able to
implement adequate preventative measures.

Although we have developed
systems and processes designed to protect our information systems and the data we manage, prevent cybersecurity incidents, data loss and
other security breaches, effectively respond to known and manage, prevent cybersecurity incidents, data loss and other security breaches,
effectively respond to known and potential risks, and expect to continue to expend significant resources to bolster these protections,
there can be no assurance that these security measures will provide absolute security or prevent breaches or attacks. We have experienced
from time to time, and may experience in the future, breaches of our security measures due to human error, malfeasance, insider threats,
system errors or vulnerabilities, or other irregularities. Unauthorized parties have attempted, and we expect that they will continue
to attempt, to gain access to our systems and facilities, as well as those of our customers, partners, and third-party service providers,
through various means, including hacking, social engineering, phishing, and attempting to fraudulently induce individuals (including employees,
service providers, and our customers) into disclosing usernames, passwords, payment card information, or other sensitive information,
which may, in turn, be used to access our cloud services. Threats can come from a variety of sources, including criminal hackers, hacktivists,
state-sponsored intrusions, industrial espionage, and insiders. Certain threat actors