Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 213

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 213
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 the original asset include: referring to the wishes of the core developers of bitcoin, blockchains with the greatest amount of hashing
power contributed by miners or validators; or blockchains with the longest chain. A fork in the network of a particular bitcoin could
adversely affect an investment in our Company or our ability to operate.

We may not be able to
realize the economic benefit of a fork, either immediately or ever, which could adversely affect an investment in our securities. If we
hold a bitcoin at the time of a hard fork into two digital assets, industry standards would dictate that we would be expected to hold
an equivalent amount of the old and new assets following the fork. However, we may not be able, or it may not be practical, to secure
or realize the economic benefit of the new asset for various reasons. For instance, we may determine that there is no safe or practical
way to custody the new asset, that trying to do so may pose an unacceptable risk to our holdings in the old asset, or that the costs of
taking possession and/or maintaining ownership of the new bitcoin exceed the benefits of owning the new bitcoin. Additionally, laws, regulation
or other factors may prevent us from benefitting from the new asset even if there is a safe and practical way to custody and secure the
new asset.

There is a possibility
of bitcoin mining algorithms transitioning to proof of stake validation and other mining related risks, which could make us less competitive
and ultimately adversely affect our business and the value of our shares.

The protocol pursuant
to which transactions are confirmed automatically on the bitcoin blockchain through mining is known as proof-of-work (or PoW). Proof-of-stake
(or PoS) is an alternative method in validating digital asset transactions, such as Ethereum. The shift from a proof-of-work validation
method to a PoS method, mining requires less energy and may render any company that maintains advantages in the current climate (for example,
from lower priced electricity, processing, real estate, or hosting) less competitive. We, as a result of our efforts to optimize and improve
the efficiency of our bitcoin mining operations, may be exposed to the risk in the future of losing the benefit of our capital investments
and the competitive advantage we hope to gain from this as a result, and may be negatively impacted by a switch to proof-of-stake validation.
This may additionally have an impact on other various investments of ours. Such events could have a material adverse effect on our ability
to continue as a