Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 59

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 59
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 information into the network, but we will need to safeguard the private
keys relating to such digital wallets. To the extent such private keys are lost, destroyed or otherwise compromised, we will be unable
to access our bitcoin rewards and such private keys may not be capable of being restored by any network. Any loss of private keys relating
to digital wallets used to store our digital assets 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 and potentially
the value of any bitcoin or other digital assets we mine or otherwise acquire or hold for our own account.

It is possible that, through computer or human
error, theft or criminal action, our digital assets could be transferred in incorrect amounts or to unauthorized third parties or accounts.
In general, digital asset transactions are irrevocable, and stolen or incorrectly transferred digital assets may be irretrievable, and
we may have extremely limited or no effective means of recovering such digital assets.

We safeguard and keep private our digital assets,
including the bitcoin that we mine, by utilizing storage solutions provided by Cactus Custody and Fireblocks, which requires multi-factor
authentication. While we are confident in the security of our digital assets held by Cactus Custody and Fireblocks, given the broader
market conditions, there can be no assurance that other 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