Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 73

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 73
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 subject to the following consequence risks apart from direct staking:

| ● | Liquid staking requires a certain level of technical expertise to manage the staking process effectively. This can be a barrier for some investors, particularly those who are new to the world of digital asset investing. |

| ● | The price of the staked derivative may decrease from its original price. This may happen because the new token has a lower market price. |

| ● | In we lose our liquid token, we will also lose our staked token. This can result from bad trades, rebalancing losses when farming in liquidity pools, and liquidations at lending protocols. |

| ● | Token holders will likely choose to stake their tokens on liquid staking protocols. As a result, the balance of validator shares taking part in the network may be disrupted, giving room for undue control from more powerful validators. |

Development of the Ethereum Platform

The Ethereum platform is an open-source project
being developed by a network of software developers, including Vitalik Buterin, a founder of Ethereum. Mr. Buterin or another key participant
within the core development group could cease to be involved with the Ethereum platform. Factions could form within the Ethereum community,
resulting in different and competing versions of Ethereum being adopted by network participants. Furthermore, network participants running
the Ethereum software may choose not to update their versions of the software, resulting in different versions of the Ethereum software
running on the network. Any of the foregoing developments could have a significant negative impact on the viability and overall health
of the Ethereum platform, the value of ETH and the Company’s business model and assets.

The beacon chain (the PoS successor to the Ethereum
PoW chain) launched in December 2020 and the “merging” of the Ethereum PoW chain into Ethereum 2.0 occurred on September 15,
2022. In addition, Ethereum’s Shanghai hard fork, also referred to as “Shapella,” has been finalized on April 12, 2023,
enabling withdrawals for users who have “staked” their ETH to secure and validate transactions on the blockchain. Although
management believes that these changes to the Ethereum platform will positively impact its potential for mainstream adoption, no assurance
can be given that such impact will materialize. If the Company cannot successfully anticipate and react to the impacts of this shift,
its business and results of operations may be adversely affected.

Uncertainty Regarding the Growth of Blockchain and Web 3 Technologies

The further development and use of blockchain,