Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 58

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 58
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platforms commonly referred to as “wallets” by holders of bitcoins which may be accessed to exchange a holder’s bitcoin
assets. Access to our digital assets could also be restricted by cybercrime (such as a denial-of-service attack) against a service at
which we maintain a hosted hot wallet. We believe that our digital assets will be an appealing target to hackers or malware distributors
seeking to destroy, damage or steal our digital assets. See Risk Factor “Cyberattacks and security breaches of our system, or those impacting our third parties, could adversely impact our brand and reputation and our business, operating results, and financial condition.” A hot wallet refers to any bitcoin wallet that is connected to the Internet. Generally, hot wallets are easier to
set up and access than wallets in cold storage, but they are also more susceptible to hackers and other technical vulnerabilities. Cold
storage refers to any bitcoin wallet that is not connected to the Internet. Cold storage is generally more secure from external attack
than hot storage but is not ideal for quick or regular transactions and we may experience lag time in our ability to respond to market
fluctuations in the price of our bitcoin assets. Moreover, cold storage may increase the risk of internal theft or malfeasance. We hold
our digital assets in hot and cold wallets through third party custodians to reduce the risk of external malfeasance, but the risk of
loss of our bitcoin assets cannot be wholly eliminated. If any of our bitcoin were lost or stolen, it is unlikely that we would ever be
able to recover such bitcoin.

In addition, the Company participates in the Foundry
USA Mining Pool (“Foundry”). Foundry is a mining pool operator which provides the Company with a digital currency mining pool.
While Foundry does not provide wallet or custodial services, it deposits bitcoin rewards to our custodian wallet addresses. Accordingly,
the risk of loss or theft of digital assets when Foundry transfers bitcoin rewards in a custodian account is no different than any other
transfer from one wallet to another.

Hackers or malicious actors may launch attacks
to steal, compromise or secure digital assets, such as by attacking the digital asset network source code, exchange miners, third-party
platforms, cold and hot storage locations or software, our general computer systems or networks, or by other means. We cannot guarantee
that we will prevent loss, damage or theft, whether caused intentionally, accidentally or by act of God. Access to our digital assets
could also be restricted by