Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 74

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 74
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Web 3 technologies and digital assets are subject to a variety of factors that are difficult to evaluate and predict, many of which are
beyond the Company’s control. The slowing or stopping of the development or acceptance of blockchain networks, specifically Ethereum,
and blockchain assets would be expected to have a material adverse effect on the Company. Furthermore, blockchain and Web 3 technologies,
including Ethereum, may never be implemented to a scale that provides identifiable economic benefit to blockchain-based businesses, including
the Company.

The Ethereum network and ETH as digital asset
have a limited history. Due to this short history, it is not clear how all elements of ETH will unfold over time, specifically with regard
to governance between miners, developers and users, as well as the long-term security model as the rate of inflation of ETH decreases.
Since the ETH community has successfully navigated a considerable number of technical and political challenges since its inception, the
Company believes that it will continue to engineer its way around future challenges. The history of open-source software development would
indicate that vibrant communities are able to change the software under development at a pace sufficient to stay relevant. The continuation
of such vibrant communities is not guaranteed, and insufficient software development or any other unforeseen challenges that the community
is not able to navigate could have an adverse impact on the business of the Company.

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Potential Decrease in Global Demand for ETH

As a currency, ETH must serve as a means of exchange,
store of value, and unit of account. Many people using ETH as money-over-internet-protocol (MoIP) do so with it as an international means
of exchange. Speculators and investors using ETH as a store of value then layer on top of means of exchange users, creating further demand.
If consumers stop using ETH as a means of exchange, or its adoption therein slows, then ETH’s price may suffer, adversely affecting
the Company.

Investors should be aware that there is no assurance
that ETH will maintain its long-term value in terms of purchasing power in the future or that the acceptance of ETH for payments by mainstream
retail merchants and commercial businesses will continue to grow. As relatively new products and technologies, ETH and the Ethereum network
have yet to become generally accepted as a means of payment for goods and services by major retail and commercial outlets, and use of
ETH by consumers to pay such retail and commercial outlets remains limited. Banks and other established financial institutions may refuse
to process funds for Ethereum network-based transactions