Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 60

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 60
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 digital asset market participants, including Cactus Custody and Fireblocks as
our custodian, will not ultimately be impacted. We continue to monitor the digital assets industry as a whole, although it is not possible
at this time to predict all of the risks stemming from these events that may result to us, our service providers, our counterparties,
and the broader industry as a whole.

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Incorrect or fraudulent bitcoin transactions may be irreversible.

Bitcoin transactions are irrevocable and stolen or incorrectly transferred digital assets may be irretrievable. As a result, any incorrectly executed or fraudulent bitcoin transactions could adversely affect our investments and assets.

Bitcoin transactions are not, from an administrative
perspective, reversible without the consent and active participation of the recipient of the digital assets from the transaction. In theory,
bitcoin transactions may be reversible with the control or consent of a majority of processing power on the network, however, we do not
now, nor is it feasible that we could in the future, possess sufficient processing power to affect this reversal. Once a transaction has
been verified and recorded in a block that is added to a blockchain, an incorrect transfer of a bitcoin or a theft thereof generally will
not be reversible, and we may not have sufficient recourse to recover our losses from any such transfer or theft. It is possible that,
through computer or human error, or through theft or criminal action, our bitcoin rewards could be transferred in incorrect amounts or
to unauthorized third parties, or to uncontrolled accounts. Further, according to the SEC, at this time, there is no specifically enumerated
U.S. or foreign governmental, regulatory, investigative or prosecutorial authority or mechanism through which to bring an action or complaint
regarding missing or stolen bitcoin. We are, therefore, presently reliant on existing private investigative entities, such as Chainalysis
and Kroll, to investigate any potential loss of our bitcoin assets. These third-party service providers rely on data analysis and compliance
of ISPs with traditional court orders to reveal information such as the IP addresses of any attackers who may have targeted us. To the
extent that we are unable to recover our losses from such action, error or theft, such events could have a material adverse effect on
our ability to continue as a going concern or to pursue our business strategy at all, which could have a material adverse effect on our
business, prospects or operations of and potentially the value of any bitcoin or other digital assets we mine or otherwise acquire or
hold for our own account