Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 505

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 505
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 used and/or provided by our customers could be inaccurate. If AI is not broadly
adopted by enterprises to the extent we expect, or if new use cases do not arise, then our opportunity may be smaller than we expect.
Further, if the consumer perception and perceived value of AI Technologies is inaccurate this could have a material adverse effect on
our customers, which in turn could have a material adverse effect on our business, operating results, financial condition, and future
prospects.

Concerns
relating to the responsible use by our customers of new and evolving technologies, such as AI, which are supported by our platform, may
result in collateral reputational harm to us. AI may pose emerging ethical issues and if our platform enables customer solutions that
draw controversy due to their perceived or actual impact on society, we may experience brand or reputational harm, competitive harm,
or legal liability.

Furthermore,
the rapid pace of innovation in the field of AI has led to developing and evolving regulatory frameworks globally, which are expected
to become increasingly complex as AI continues to evolve. Regulators and lawmakers around the world have started proposing and adopting,
or are currently considering, regulations and guidance specifically on the use of AI. Regulations related to AI Technologies have
been introduced in the United States at the federal level and are also enacted and advancing at the state level. Additional regulations
may impact our customers’ ability to develop, use and commercialize AI Technologies, which would impact demand for our platform,
solutions, and services and may affect our business, operating results, financial condition, and future prospects.

AI
and related industries, including cloud services, are under increasing scrutiny from regulators due to their concerns about market concentration,
anti-competitive practices, and the pace of partnerships and acquisitions involving generative AI startups. As the industry continues
to grow, transactions and business conduct will likely continue to draw scrutiny from regulators. Our customers may become subject to
further AI regulations, including any restrictions on the total consumption of compute technology, which could cause a delay or impediment
to the commercialization of AI technology and could lead to a decrease in demand for our customers’ AI infrastructure, and may
adversely affect our business, operating results, financial condition, and future prospects.

78

WhiteFiber
operates in a capital-intensive industry and is subject to capital market and interest rate risks.

WhiteFiber’s
operations require significant capital investment to purchase and maintain the property and equipment required to provide specialized