Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 495

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 495
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, 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 or otherwise acquire or hold for our own account, and harm investors.

The development
and acceptance of competing blockchain platforms or technologies may cause consumers to use alternative distributed ledgers or other alternatives.

The development and acceptance
of competing blockchain platforms or technologies may cause consumers to use alternative distributed ledgers or an alternative to distributed
ledgers altogether. Our business utilizes presently existent digital ledgers and blockchains and we could face difficulty adapting to
emergent digital ledgers, blockchains, or alternatives thereto. This may adversely affect us and our exposure to various blockchain technologies
and prevent us from realizing the anticipated profits from our investments. Such circumstances could have a material adverse effect on
our ability to continue as a going concern or 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 or otherwise acquire or hold
for our own account, and harm investors.

41

Our digital assets
may be subject to loss, theft or restriction on access.

There is a risk that
some or all of our digital assets, including bitcoin, ETH, liquid staking tokens and/or USD Coin could be lost, stolen or destroyed. Digital
assets are stored in platforms commonly referred to as “wallets” by holders of bitcoins which may be accessed to exchange
a holder’s bitcoin assets. Access to our digital assets could also be restricted by cybercrime (such as a denial-of-service attack)
against a service at which we maintain a hosted hot wallet. We believe that our digital assets will be an appealing target to hackers
or malware distributors seeking to destroy, damage or steal our digital assets. See Risk Factor “Cyberattacks and security breaches
of our system, or those impacting our third parties, could adversely impact our brand and reputation and our business, operating results,
and financial condition.” A hot wallet refers to any bitcoin wallet that is connected to the Internet. Generally, hot wallets
are easier to set up and access than wallets in cold storage, but they are also more susceptible to hackers and other technical vulnerabilities.
Cold storage refers to any bitcoin wallet that is not connected to the Internet. Cold storage is generally more secure from external attack
than hot storage but is not ideal for quick or regular transactions and we may experience lag time in our ability to respond to market
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