Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 78

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 78
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2.0, as the PoS method of validating transactions was expected to improve the speed and efficiency of the network.

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Decrease in Block Reward or Yield

In the event of a material decrease in the block
reward to the Ethereum network, stakers may cease to provide their staked ETH to the consensus mechanism for the Ethereum network blockchain.
This risk was expected to be mitigated in part on Ethereum 2.0, as the rewards earned by stakers of ETH will proportionately decline as
more stakers participate in the network. Conversely, if some stakers decide to stop participating because the yield is too low, remaining
stakers will enjoy a higher yield. Consequently, Ethereum 2.0 is expected to attract a sufficient number of stakers and validators to
keep the network running efficiently.

Competitors to ETH and the Ethereum Network

Currently, ETH is the second largest digital asset
by market capitalization, with Coingecko citing more than 5,000 alternative digital assets. To the extent a competitor to ETH gains popularity
and greater market share, the use and price of ETH could be negatively impacted, which may adversely affect the investments of the Company.
Similarly, the price of ETH could be negatively impacted by competition from incumbents in the credit card and payments industries or
from other developing blockchain protocols.

Financial Institutions may Refuse to Support Transactions Involving ETH

In the uncertain regulatory climate for digital
assets, including ETH, regulated financial institutions may refuse to support transactions involving digital assets, including the receipt
of cash proceeds from sales of digital asset. Should this occur, the Company’s business, prospects, financial condition, results
of operations or cash flows could be materially adversely affected.

Risks Related to the Geopolitical Uncertainty

Changes in tariffs or import restrictions could have a material adverse effect on our business, financial condition and results of operations.

The U.S. government has adopted
new approaches to trade policy and in some cases, may renegotiate, or potentially terminate, certain existing bilateral or multi-lateral
trade agreements. The U.S. government has also imposed tariffs on certain foreign goods and has raised the possibility of imposing significant,
additional tariff increases or expanding the tariffs to capture other countries and types of foreign goods. Because WhiteFiber is developing
data centers in Canada and the United States, the imposition of tariffs on imports between these countries could materially impact the
cost, timeline, and feasibility of our projects. Tariffs imposed by the U.S