Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 92

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 92
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by the SEC, or violations of applicable stock exchange listing rules. There could also be a negative reaction in the financial markets
due to a loss of investor confidence in us and the reliability of its financial statements. Confidence in the reliability of our financial
statements is also likely to suffer if it or its independent registered public accounting firm reports a material weakness in its internal
control over financial reporting. This could have a material and adverse effect on us by, for example, leading to a decline in the share
price and impairing its ability to raise additional capital.

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New York State Moratorium on Cryptocurrency Mining Operations

On November 22, 2022, the New York State enacted
a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain operations; provided
that such operations shall be subject to a full generic environmental impact statement review. While the Company’s bitcoin mining
operations in upstate New York State use proof-of-work authentication, they were approximately 90% (now 99%) carbon free according to
NYISO Power Trends 2023 Report. The law provides for a two-year moratorium on new applications or new permits for an electric generating
facility that utilizes a carbon-based fuel. Therefore, the Company believes that its New York State hosting facilities, which primarily
depended on hydroelectric power, will be able to comply with the law.

Regulatory restrictions that target AI, including, but not limited to, export restrictions may have a material adverse impact on 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, AI 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