Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 520

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 520
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Any violation of applicable
anti-corruption laws, anti-money laundering laws or the FCPA (when again enforceable) could result in whistleblower complaints, adverse
media coverage, investigations, loss of export privileges, severe criminal or civil sanctions and, in the case of the FCPA, suspension
or debarment from U.S. government contracts, any of which could have a materially adverse effect on our reputation, business, operating
results, prospects and financial condition. In addition, responding to any enforcement action or internal investigation related to alleged
misconduct may result in a significant diversion of management’s attention and resources and significant defense costs and other
professional fees.

54

In
many foreign countries, including countries in which we may conduct business, it may be a local custom that businesses engage in practices
that are prohibited by the FCPA, or other applicable laws and regulations. We face significant risks if we or any of our directors, officers,
employees, contractors, agents or other partners or representatives fail to comply with these laws and governmental authorities in the
United States and elsewhere could seek to impose substantial civil and/or criminal fines and penalties which could have a material adverse
effect on our business, reputation, operating results, prospects and financial condition.

Any
violation of the FCPA, other applicable anti-corruption laws, or anti-money laundering laws could result in whistleblower complaints,
adverse media coverage, investigations, loss of export privileges, severe criminal or civil sanctions and, in the case of the FCPA, suspension
or debarment from U.S. government contracts, any of which could have a materially adverse effect on our reputation, business, operating
results, prospects and financial condition. In addition, responding to any enforcement action or internal investigation related to alleged
misconduct may result in a significant diversion of management’s attention and resources and significant defense costs and other
professional fees.

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