Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 217

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 217
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 new technology into our systems, or doing so in a cost-effective
manner. During the course of implementing any such new technology into our operations, we may experience system interruptions and failures
during such implementation. Furthermore, there can be no assurances that we will recognize, in a timely manner or at all, the benefits
that we may expect as a result of our implementing new technology into our operations. As a result, our business and operations may suffer,
and there may be adverse effects on the price of our Ordinary Shares.

The value of stable
coins that we hold may be subject to volatility and risk of loss 

As of December 31, 2024,
we held approximately $0.4 million in USD Coin, a stablecoin issued by Circle Internet Financial Public Limited Company (“Circle”)
that is backed by dollar denominated assets held by the issuer in segregated accounts with U.S. regulated financial institutions. Stablecoins
such as USD Coin are usually backed by the U.S. Dollar and other short-dated U.S. government obligations, and are usually pegged to the
U.S. dollar. On March 9, 2023, as a result of the closure of Silicon Valley Bank (“SVB”), Circle announced that $3.3 billion
of its roughly $40 billion USD Coin reserves were held at SVB. As a result, Circle depegged the USD Coin from its $1.00 peg, trading as
low as $0.87. In January 2024, Coindesk reported that Circle’s USDC dollar-pegged stablecoin fell to as low at $0.74 on three separate
occasions following a marketwide sell-off spurred by a report casting doubt over whether a spot bitcoin ETF will be approved. Such a risk
may result in the sell-off of USD Coin and volatility as to the value of stablecoins, which would expose us to risk of potential loss
and could have a material adverse effect on our ability to raise new funding and on our business, financial condition, and results of
operations and prospects.

Ethereum Risk Factors

Risks Associated
with Staking on Ethereum 2.0

In
connection with the transition of the Ethereum network from PoW to PoS, which occurred on September 15, 2022, when the Ethereum Mainnet
merged with the PoS Beacon Chain (the “Merge”), the Company is deploying Ethereum (ETH) to the beacon chain with a view to
earning an ETH-denominated return there