Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 94

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 94
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 also now licensing requirements to export a wide array of products, including networking
products, destined for certain end users and for certain end uses in China.

Management of these new license and other requirements
is complicated and time consuming. Our results and competitive position may be harmed if we are restricted in offering our services, if
customers purchase services from competitors, if customers develop their own internal solution, if we are unable to provide contractual
warranty or other extended service obligations, if the U.S. government does not grant licenses in a timely manner or denies licenses to
significant customers, or if we incur significant transition costs. Even if the U.S. government grants any requested licenses, the licenses
may be temporary or impose burdensome conditions that we cannot or choose not to fulfill. The new requirements may benefit certain of
our competitors, as the licensing process will make our pre-sale and post-sale technical support efforts more cumbersome and less certain,
and encourage customers to pursue alternatives to our services.

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Issues in the development and use of AI may result in reputational or competitive harm or liability.

We are beginning to build AI into our infrastructure
services, and we are also providing computing power for AI available for our customers to use in solutions that they build. We are providing
supporting/computing power to clients, including our strategic partners who develop AI systems. We expect this integration of AI into
our offerings and our business in general to grow. AI presents risks and challenges that could affect its adoption, and therefore our
business. AI algorithms or training methodologies may be flawed. Datasets may be overbroad, insufficient, or contain biased information.
Content generated by AI systems may be offensive, illegal, or otherwise harmful. Ineffective or inadequate AI development or deployment
practices by our Company or others could result in incidents that impair the acceptance of AI solutions or cause harm to individuals,
customers, or society, or result in our products and services not working as intended. Human review of certain outputs may be required.
As a result of these and other challenges associated with innovative technologies, our implementation of AI systems could subject us to
competitive harm, regulatory action, legal liability, including under new proposed legislation regulating AI in jurisdictions, new applications
of existing data protection, privacy, intellectual property, and other laws, and brand or reputational harm. 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