Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 62

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 62
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 share price.

Currently, we do not have any insurance to cover
our digital assets or mining equipment. The market for such insurance is in the early stages and we intend to purchase such insurance
in the future. One of our digital asset custodians, Cactus Custody, is self-insured for $4 million plus annual additions. Any uninsured
losses may have an adverse effect on our results of operations and/or financial condition. Fireblocks offers Fireblocks Institutional
Digital Asset Program which is insured by leading insurance companies which are A.M. Bests rated “A” (excellent). There is
an aggregate of $30,000,000 digital asset crime insurance for theft of digital assets, external breach of Fireblocks’ software or
any malicious or intentional misbehavior or fraud by employees. Fireblocks has $12,500,000 of aggregate insurance for errors and omissions;
professional liability insurance and cyber/privacy liability insurance.

Digital assets face significant scaling obstacles that can lead to high fees or slow transaction settlement times.

Digital assets face significant scaling obstacles
that can lead to high fees or slow transaction settlement times and attempts to increase the volume of transactions may not be effective.
Scaling digital assets is essential to the widespread acceptance of digital assets as a means of payment, which widespread acceptance
is necessary to the continued growth and development of our business. Many bitcoin networks face significant scaling challenges. For example,
digital assets are limited with respect to how many transactions can occur per second. Participants in the bitcoin ecosystem debate potential
approaches to increasing the average number of transactions per second that the network can handle and have implemented mechanisms or
are researching ways to increase scale, such as increasing the allowable sizes of blocks, and therefore the number of transactions per
block, and sharding (a horizontal partition of data in a database or search engine), which would not require every single transaction
to be included in every single miner’s or validator’s block. However, there is no guarantee that any of the mechanisms in
place or being explored for increasing the scale of settlement of bitcoin transactions will be effective, or how long they will take to
become effective, which could adversely affect an investment in our securities.

The price of digital assets may be affected by the sale of such digital assets by other vehicles investing in digital assets or tracking bitcoin markets.

The global market for digital assets is characterized
by supply constraints that differ from those present in the markets for commodities or other assets such as gold and silver. The mathematical
protocols under which certain digital assets