Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 75

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 75
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 for ETH

As a currency, ETH must serve as a means of exchange,
store of value, and unit of account. Many people using ETH as money-over-internet-protocol (MoIP) do so with it as an international means
of exchange. Speculators and investors using ETH as a store of value then layer on top of means of exchange users, creating further demand.
If consumers stop using ETH as a means of exchange, or its adoption therein slows, then ETH’s price may suffer, adversely affecting
the Company.

Investors should be aware that there is no assurance
that ETH will maintain its long-term value in terms of purchasing power in the future or that the acceptance of ETH for payments by mainstream
retail merchants and commercial businesses will continue to grow. As relatively new products and technologies, ETH and the Ethereum network
have yet to become generally accepted as a means of payment for goods and services by major retail and commercial outlets, and use of
ETH by consumers to pay such retail and commercial outlets remains limited. Banks and other established financial institutions may refuse
to process funds for Ethereum network-based transactions, process wire transfers to or from digital asset trading platforms, Ethereum-related
companies or service providers, or maintain accounts for persons or entities transacting in ETH. Conversely, a significant portion of
ETH demand is generated by speculators and investors seeking to profit from the short or long-term holding of ETH. The Company believes
that, like any commodity, ETH will fluctuate in value, but over time will gain a level of acceptance as a store of value, medium of exchange
or token of utility.

Smart Contract Risk

The Ethereum network is based upon the development
and deployment of smart contracts, which are self-executing contracts with the terms of the agreement written into software code. There
are thousands of smart contracts currently running on Ethereum network. Like any software code, smart contracts are exposed to risk that
the code contains a bug or other security vulnerability, which can lead to loss of assets that are held on or transacted through the contract.
The smart contract deployed on Ethereum and, as such, may contain a bug or other vulnerability that may lead to the loss of digital assets
held in the wallet. The Ethereum developer community audits widely used smart contracts frequently and publishes the results of such audits
on public forums. The Company currently relies on MarsLand for its native staking and Liquid Collective for its liquid staking solution.
The smart contract code via MarsLand was audited by CertiK. The smart contract