Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 58

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 58
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 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 natural events (such as an earthquake or flood) or human actions (such as a terrorist attack). We may be in
control and possession of one of the more substantial holdings of digital assets. As we increase in size, we may become a more appealing
target of hackers, malware, cyber-attacks or other security threats. Any of these events may adversely affect our operations and, consequently,
our investments and profitability. The loss or destruction of a private key required to access our digital wallets may be irreversible
and we may be denied access for all time to our digital asset holdings held in those compromised wallets. Our loss of access to our private
keys or our experience of a data loss relating to our digital wallets could adversely affect our investments and assets.

Digital assets are controllable only by the possessor
of both the unique public and private keys relating to the local or online digital wallet in which they are held, which wallet’s
public key or address is reflected in the network’s public blockchain. We will publish the public key relating to digital wallets
in use when we verify the receipt of transfers and disseminate such