Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 50

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 50
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 attack. The security and other measures we take to protect against these risks may not be sufficient. Additionally, our mines could
be materially adversely affected by a power outage or loss of access to the electrical grid or loss by the grid of cost-effective sources
of electrical power generating capacity. Given the power requirements of our mines, it would not be feasible to run miners on back- up
power generators in the event of a power outage. We do not have any insurance to cover the replacement cost of any lost or damaged miners,
or any interruption of our mining activities. In the event of an uninsured loss, such mines may not be adequately repaired in a timely
manner or at all, and we may lose some or all of the future revenues anticipated to be derived from such mines.

From time to time, our service providers have been unable to supply sufficient electric power for us to operate our miners, which has adversely affected our operations, causing us to relocate some or all of our miners to an alternative facility, which may have a less advantageous cost structure and our business and results of operations may suffer as a result.

We made a significant capital investment in purchasing
second-hand miners in order to implement them rapidly to mine bitcoin at prices advantageous to us. Management believes, based on its
knowledge of the industry, that the hosting agreements provided many advantages as opposed to other alternative arrangements. However,
we have since been required to deploy or move our miners from their current hosting service providers to other mining facilities, and
we may be forced to accept less advantageous terms. Further, during relocation to a new mining facility, we will not be able to operate
our miners and therefore we will not be able to generate revenue.

From May until September 2022, power was offline
at the Niagara Falls, New York facility hosted by Blockfusion, due to an explosion and subsequent fire. We have estimated the loss of
revenue at the Blockfusion site through September 13, 2022 to be approximately $3,200,000. Our methodology is based on the historical
rate for those impacted miners and the average bitcoin and ETH earned during the above period. Shortly after power was restored, the Company
and Blockfusion received a notice from the City of Niagara Falls, New York directing Blockfusion to cease and desist its cryptocurrency
mining activities at Blockfusion’s Niagara Falls facility. The loss of power at Blockfusion facilities has had a material adverse
effect on our operations. We relocated our miners from Blockfusion facilities to Digihost,