Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 492

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 492
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protocols and procedures ineffective in ways which we cannot predict. If our security procedures and protocols are ineffectual and our
digital assets are compromised by cybercriminals, we may not have adequate recourse to recover our losses stemming from such compromise
and we may lose much of the accumulated value of our bitcoin mining activities. This would have a material adverse impact on our business
and operations.

The impact of geopolitical
and economic events on the supply and demand for digital assets is uncertain.

Geopolitical crises may
motivate large-scale purchases of bitcoin and other digital assets, which could increase the price of bitcoin and other digital assets
rapidly. This may increase the likelihood of a subsequent price decrease as crisis-driven purchasing behavior dissipates, adversely affecting
the value of our inventory following such downward adjustment. Such risks are similar to the risks of purchasing commodities in general
uncertain times, such as the risk of purchasing, holding or selling gold. Alternatively, as an emerging asset class with limited acceptance
as a payment system or commodity, global crises and general economic downturn may discourage investment in digital assets as investors
focus their investment on less volatile asset classes as a means of hedging their investment risk.

As an alternative to
fiat currencies that are backed by central governments, digital assets, which are relatively new, are subject to supply and demand forces.
How such supply and demand will be impacted by geopolitical events is largely uncertain, but could be harmful to us and investors in our
Ordinary Shares. Political or economic crises, including recent bank failures, may motivate large-scale acquisitions or sales of digital
assets either globally or locally. Such events could have a material adverse effect on our ability to continue as a going concern or to
pursue our new strategy at all, which could have a material adverse effect on our business, prospects or operations and potentially the
value of any bitcoin or any other digital assets we mine or otherwise acquire or hold for our own account.

Acceptance and/or
widespread use of bitcoin is uncertain.

Currently, there is a
relatively limited use of any bitcoin in the retail and commercial marketplace, thus contributing to price volatility that could adversely
affect an investment in our securities. Banks and other established financial institutions may refuse to process funds for bitcoin transactions,
process wire transfers to or from bitcoin exchanges, bitcoin-related companies or service providers, or maintain accounts for persons
or entities transacting in bitcoin. Conversely, a significant portion of bitcoin demand is generated by investors seeking a long-term
store of value or