Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 523

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 523
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 Some AI scenarios present
ethical issues or may have broad impacts on society. If we provide supporting/computing AI services that have unintended consequences,
unintended usage or customization by our customers and partners, or are controversial because of their impact on human rights, privacy,
employment, or other social, economic, or political issues, we may experience brand or reputational harm, adversely affecting our business
and consolidated financial statements.

We are subject
to governmental regulation and other legal obligations related to data privacy, data protection and information security. If we are unable
to comply with these, we may be subject to governmental enforcement actions, litigation, fines and penalties or adverse publicity.

We collect and process
data, including personal, financial and confidential information about individuals, including our employees and business partners; however,
not of any customers or other third parties. The collection, use and processing of such data about individuals are governed by data privacy
laws and regulations enacted in the U.S. (federal and state), and other jurisdictions around the world. These data privacy laws and regulations
are complex, continue to evolve, and on occasion may be inconsistent between jurisdictions leading to uncertainty in interpreting such
laws and it is possible that these laws, regulations and requirements may be interpreted and applied in a manner that is inconsistent
with our existing information processing practices, and many of these laws are significantly litigated and/or subject to regulatory enforcement.
The implication of this includes that various federal, state and foreign legislative or regulatory bodies may enact or adopt new or additional
laws and regulations concerning data privacy, data retention, data transfer, and data protection. Such laws may continue to restrict or
dictate how we collect, maintain, combine and disseminate information and could have a material adverse effect on our business, results
of operations, financial condition and prospects.

In the United States,
there are numerous federal and state laws and regulations that could apply to our operations or the operations of our partners, including
data breach notification laws, financial information and other data privacy laws, and consumer protection laws and regulations (e.g.,
Section 5 of the FTC Act), that govern the collection, use, disclosure, and protection of personal information.

56

Existing and increasing legal and regulatory
requirements could adversely affect our results of operations.

We are subject to a wide range of laws, regulations,
and legal requirements in the U.S. and globally, including those that may apply to our products and online services offerings, and those
that impose requirements related to user privacy, telecommunications, data storage