Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 76

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 76
---
 code via Liquid Collective was audited by Halborn and Spearbit.
Nevertheless, there is no guaranty against a bug or other vulnerability leading to a loss of digital assets.

Risks Associated with the Ethereum Network

Dependence on Ethereum Network Developers

While many contributors to the Ethereum network’s
open-source software are employed by companies in the industry, most of them are not directly compensated for helping to maintain the
protocol. As a result, there are no contracts or guarantees that they will continue to contribute to the Ethereum network’s software
(https://github.com/ether and https://github.com/orgs/ether/people).

Issues with the Cryptography Underlying the Ethereum Network

Although the Ethereum network is one of the world’s
most established digital asset networks, the Ethereum network and other cryptographic and algorithmic protocols governing the issuance
of digital assets represent a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate.
In the past, flaws in the source code for digital assets have been exposed and exploited, including flaws that disabled some functionality
for users, exposed users’ personal information and/or resulted in the theft of users’ digital assets. The cryptography underlying
ETH could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in digital computing,
algebraic geometry and quantum computing, could result in such cryptography becoming ineffective. In any of these circumstances, a malicious
actor may be able to take the ETH held by the Company. Moreover, functionality of the Ethereum network may be negatively affected such
that it is no longer attractive to users, thereby dampening demand for ETH. Even if digital assets other than ETH were affected by similar
circumstances, any reduction in confidence in the source code or cryptography underlying digital assets generally could negatively affect
the demand for digital assets and therefore adversely affect the business of the Company.

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Disputes on the Development of the Ethereum Network may lead to Delays in the Development of the Network

There can be disputes between contributors on
the best paths forward in building and maintaining the Ethereum network’s software. Furthermore, the stakers supporting the network
and other developers and users of the network can disagree with the contributors as well, creating greater debate. Therefore, the Ethereum
community often iterates slowly upon contentious protocol issues, which many perceive as prudently conservative, while others worry that
it inhibits innovation. It will be important for the community to continue to develop at a pace