Bit Digital, Inc 10-K cybersecurity disclosure (Item 1C), fiscal 2025

Item 1C. Cybersecurity

The Company's cybersecurity principles,

goals and targets are defined in a policy approved by the Board of Directors (the "Cybersecurity Policy"). This Policy is

anchored in a risk-based approach based on industry standards to balance the level of cybersecurity against the risks faced by the Company.

Material risks are managed by both internal resources and third-party contractors. The Company believes that effective information security

management is necessary for the secured sharing and protection of information within the Company's cyberspace.

The Cybersecurity Policy applies to all directors,

officers, employees and contractors of the Company and any parent, holding companies and subsidiaries regardless of their contract terms,

who use the Company's technological devices.

The Board of Directors is responsible for leading

the Company to minimize the risk of unauthorized and malicious use, disclosure, potential theft, alteration or damaging effects on the

Company's operations while concurrently enabling the sharing of information in cyberspace. The Board of Directors is committed

to ensuring that risks to the confidentiality, integrity or availability of Company-owned information assets are managed appropriately

by implementing an information security risk management approach. The Company's cybersecurity risk management is integrated into

its overall enterprise risk management, sharing common reporting channels and governance processes that apply across the enterprise risk

management program.

The Board of Directors as a whole oversees the

Cybersecurity Policy and its implementation of the Company's oversight, programs, procedures, and policies related to cybersecurity,

cybersecurity risks, information security, and data privacy. Departments of the Company have been identified under the Cybersecurity

Policy to report to the Company's Head of IT overseeing the cybersecurity strategy as defined in the Cybersecurity Policy.

The management team includes members with IT

backgrounds to guide our cybersecurity efforts. Management continuously assesses risk as internal and external factors evolve and remains

committed to ensuring employees have the adequate resources and training to fully understand cybersecurity guidelines and expectations.

In the event of a Policy breach, members of the management team may be asked by the IT Department to assist with security investigations.

If any member of management is unaware of the best course of action in dealing with an IT-related matter, the manager shall immediately

contact the Company's Head of IT. Upon discovering a potential violation of the Policy or a cybersecurity breach, the member of

management must document the incident and request the individual surrender possession of any devices that may have suffered a security

breach.

We assessed all third-party vendors, including our third-party IT firms,

before engaging them for various services. We have partnered with third-party IT providers to support our cybersecurity and information

technology functions, with the Managed Security Operations Center operating 24/7/365 for automated email monitoring, malicious email quarantine,

and reporting; secure systems design and architecture, security controls implementation, penetration testing, disaster recovery testing,

and risk assessments. Through these partnerships, we maintain continuous security monitoring and control validation We also perform yearly

risk assessments on critical vendors and suppliers as part of our information technology general controls cyber security processes.

Additionally, the Company's management

leverages manual controls to verify data integrity and mitigate risk, considering the Company's size and business model. Management

also provides interim and year-end reports to the Board of Directors on the Company's and its subsidiaries' IT General controls

(ITGC) related to cybersecurity and information security matters.

In 2025, we did not identify any cybersecurity

events that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial

condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have

not experienced an undetected cybersecurity incident. For more information about these risks, please see " Risk Factors—

Cyberattacks and security breaches of our system, or those impacting our third parties, could adversely impact our brand and reputation

and our business, operating results, and financial condition. "