Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 64

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 64
---
 in miner production. The global reliance on China as a main supplier of bitcoin miners has
been called into question, particularly in the wake of the COVID-19 pandemic. Should similar outbreaks or other disruptions to the China-based
global supply chain for bitcoin hardware on the spot market or otherwise occur, we may not be able to obtain adequate replacement parts
for our existing miners or to obtain additional miners from the manufacturer or third parties on a timely basis. Such events could have
a material adverse effect on our ability to pursue our business strategy, which could have a material adverse effect on our business and
the value of our Ordinary Shares.

The bitcoin we mine is subject to halving; the bitcoin reward for successfully uncovering a block will halve several times in the future and bitcoin’s value may not adjust to compensate us for the reduction in the rewards we receive from our mining efforts.

Halving is a process designed to control the overall
supply and reduce the risk of inflation in digital assets using a proof-of-work consensus algorithm. At a predetermined block, the mining
reward is cut in half, hence the term “halving.” For bitcoin, the reward was initially set at 50 bitcoin currency rewards
per block and this was cut in half to 25 on November 28, 2012 at block 210,000 and again to 12.5 on July 9, 2016 at block 420,000. The
next halving for bitcoin occurred in May 2020 at block 630,000 when the reward was reduced to 6.25. This reward rate was halved during
April 2024 to 3.125 bitcoin per new block and will continue to halve at approximately four-year intervals until all potential 21 million
bitcoin have been mined. If the award of bitcoin rewards for solving blocks and transaction fees are not sufficiently high, we may not
have an adequate incentive to continue mining and may cease our mining operations. Halving may result in a reduction in the aggregate
hash rate of the bitcoin network as the incentive for miners decreases. Miners ceasing operations would reduce the collective processing
power on the network, which would adversely affect the confirmation process for transactions (i.e., temporarily decreasing the speed at
which blocks are added to a blockchain until the next scheduled adjustment in difficulty for block solutions) and make bitcoin networks
more vulnerable to a malicious actor or botnet obtaining control in excess of 50% of the processing power active on a blockchain, potentially
permitting such actor