Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 64

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 64
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ving.” For bitcoin, the reward was initially set at 50 bitcoin currency rewards
per block and this was cut in half to 25 on November 28, 2012 at block 210,000 and again to 12.5 on July 9, 2016 at block 420,000. The
next halving for bitcoin occurred in May 2020 at block 630,000 when the reward was reduced to 6.25. This reward rate was halved during
April 2024 to 3.125 bitcoin per new block and will continue to halve at approximately four-year intervals until all potential 21 million
bitcoin have been mined. If the award of bitcoin rewards for solving blocks and transaction fees are not sufficiently high, we may not
have an adequate incentive to continue mining and may cease our mining operations. Halving may result in a reduction in the aggregate
hash rate of the bitcoin network as the incentive for miners decreases. Miners ceasing operations would reduce the collective processing
power on the network, which would adversely affect the confirmation process for transactions (i.e., temporarily decreasing the speed at
which blocks are added to a blockchain until the next scheduled adjustment in difficulty for block solutions) and make bitcoin networks
more vulnerable to a malicious actor or botnet obtaining control in excess of 50% of the processing power active on a blockchain, potentially
permitting such actor or botnet to manipulate a blockchain in a manner that adversely affects the network and our activities. A reduction
in confidence in the confirmation process or processing power of the network could result and be irreversible. Such events could have
a material adverse effect on our ability to continue 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, whether now or in the
future, or otherwise acquire or hold for our own account. While bitcoin prices have had a history of price fluctuations around the halving
of its bitcoin rewards, there is no guarantee that the price change will be favorable or would compensate for the reduction in mining
reward. If a corresponding and proportionate increase in the trading price of bitcoin does not follow these anticipated halving events,
the revenue we earn from our mining operations would see a corresponding decrease, which would have a material adverse effect on our business
and operations.

The impact of social media and influencers on the price for digital assets is uncertain.

Renowned persons, including social media influencers