Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 117

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 117
---
 claims are brought against us, we
may be forced to divert management’s time and other resources from our business and operations to defend against these claims, regardless
of their merits. If we were found to have violated the intellectual property rights of others, we may be subject to liability for our
infringement activities or may be prohibited from using such intellectual property, and we may incur licensing fees or be forced to develop
alternatives of our own. Moreover, the intellectual property ownership and license rights, including copyright, surrounding AI technologies
has not been fully addressed by courts or laws or regulations, and the use or adoption of AI technologies into our offerings may result
in exposure to claims of copyright infringement or other intellectual property misappropriation. As a result, our business and results
of operations may be materially and adversely affected.

<div align='center'>63</div>

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

We
continue to incorporate AI into our cloud services and infrastructure, and we are also providing computing power 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 services 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 or result inaccurate results
or hallucinations. Datasets may be overbroad, insufficient, or contain biased information that could result in algorithmic discrimination.
Content generated by AI systems may be offensive, illegal, or otherwise harmful or infringing of the rights of third parties. Ineffective
or inadequate AI development or deployment practices by others could result in incidents that impair the acceptance of AI solutions or
cause harm to individuals, customers, or society, or result in our services not working as intended. Human review of certain outputs or
decisions may be required. As a result of these and other challenges associated with innovative technologies, our implementation of cloud
services 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/cloud services that have
unintended consequences, unintended usage or customization by our customers and partners, or are