Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 166

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 166
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 our ability to attract and retain employees, encourage innovation and
teamwork and effectively focus on and pursue our corporate objectives.

18

We do not have
any business interruption or disruption insurance coverage.

Currently, we do not
have any business liability or disruption insurance to cover our operations, other than director’s and officer’s liability
insurance. We have determined that the costs of insuring for these risks and the difficulties associated with acquiring such insurance
on commercially reasonable terms make it impractical for us to have such insurance. Any uninsured business disruptions may result in our
incurring substantial costs and the diversion of resources, which could have an adverse effect on our results of operations and financial
condition.

Cyberattacks and security breaches of cloud
services, or those impacting our third parties, could adversely impact our brand and reputation and our business, operating results, and
financial condition.

Our cloud services involve
the collection, storage, processing, and transmission of confidential information, employee, service provider, and other personal data.
We have built our cloud services on the premise that we maintain a secure way to secure, store, and transact in cloud services. As a result,
any actual or perceived security breach of us or our third-party partners may:

●harm
our reputation and brand;

●result
in our cloud services being unavailable and interrupt our operations;

●result
in improper disclosure of data and violations of applicable privacy and other laws;

●result
in significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, and financial exposure;

●cause
us to incur significant remediation costs;

●divert
the attention of management from the operation of our business; and

●adversely
affect our business and operating results.

Further, any actual or perceived
breach or cybersecurity attack, whether or not we are directly impacted, could lead to a general loss of customer confidence in the digital
asset industry or in the use of technology to conduct financial transactions, which could negatively impact us, including the market perception
of the effectiveness of our security measures and technology infrastructure.

An increasing number of organizations,
including large merchants, businesses, technology companies, and financial institutions, as well as government institutions, have disclosed
breaches of their information security systems, some of which have involved sophisticated and highly targeted attacks, including on their
websites, mobile applications, and infrastructure.

Attacks upon systems across
a variety of industries, including cloud services, are increasing in their frequency, persistence, and sophistication, and,