Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 503

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 503
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Such events could have a material adverse effect on our ability to continue to pursue our business strategy at all, which could have a
material adverse effect on our business, prospects or operations and potentially the value of any bitcoin or other digital assets we mine,
whether now or in the future, or otherwise acquire or hold for our own account. While bitcoin prices have had a history of price fluctuations
around the halving of its bitcoin rewards, there is no guarantee that the price change will be favorable or would compensate for the reduction
in mining reward. If a corresponding and proportionate increase in the trading price of bitcoin does not follow these anticipated halving
events, the revenue we earn from our mining operations would see a corresponding decrease, which would have a material adverse effect
on our business and operations.

The impact of social media and influencers
on the price for digital assets is uncertain.

Renowned persons, including
social media influencers, may publicly discuss their holdings (or the holdings of companies with which they are affiliated) of bitcoin
or their intent to buy or sell large quantities of bitcoin. This may have a dramatic impact on the price of bitcoin, both up and down.
At a minimum, these public statements delivered through social media, such as X (formerly Twitter), may cause the price of bitcoin to
experience significant volatility. These episodes could have a material adverse impact on the value of our bitcoin holdings as well as
the prices of bitcoin that we may sell.

45

We may not be able
to realize the benefits of forks.

To the extent that a
significant majority of users and miners on a bitcoin network install software that changes the bitcoin network or properties of a bitcoin,
including the irreversibility of transactions and limitations on the mining of new bitcoin, the bitcoin network would be subject to new
protocols and software. However, if less than a significant majority of users and miners on the bitcoin network consent to the proposed
modification, and the modification is not compatible with the software prior to its modification, the consequence would be what is known
as a “fork” of the network, with one prong running the pre-modified software and the other running the modified software.
The effect of such a fork would be the existence of two versions of the bitcoin running in parallel yet lacking interchangeability and
necessitating exchange-type transaction to convert currencies between the two forks. Additionally, it may be unclear following a fork
which fork represents the original asset and which is the new asset. Different metrics adopted by industry participants to determine which