Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 63

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 63
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 are mined permit the creation of a limited, predetermined amount of currency, while others
have no limit established on total supply. To the extent that other vehicles investing in digital assets or tracking digital assets markets
form and come to represent a significant proportion of the demand for digital assets, large redemptions of the securities of those vehicles
and the subsequent sale of digital assets by such vehicles could negatively affect digital asset prices and therefore affect the value
of the digital asset inventory (i.e., bitcoin and ETH) we hold. The recent introduction of a spot bitcoin exchange traded fund (“ETF”)
and the pending approval of an ETH ETF may attract speculative traders who seek short-term gains based on price movements. This increased
speculative activity could lead to short-term price volatility. Such events 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 digital assets we mine or otherwise acquire or hold for our own account.

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There are risks related to technological obsolescence, the vulnerability of the global supply chain for bitcoin hardware disruption, and difficulty in obtaining new hardware which may have a negative effect on our business.

Our mining operations can only be successful and
ultimately profitable if the costs, including hardware and electricity costs, associated with mining digital assets are lower than the
price of a bitcoin. As our mining facility operates, our miners experience ordinary wear and tear, and may also face more significant
malfunctions caused by a number of extraneous factors beyond our control. We have purchased second-hand miners from third parties. The
degradation of our miners requires us to, over time, replace those miners which are no longer functional. Additionally, as the technology
evolves, we are required to acquire newer models of miners to remain competitive in the market. Reports have been released which indicate
that miner manufacturers or sellers adjust the prices of their miners according to bitcoin prices, so the cost of new machines is unpredictable
but could be extremely high. As a result, at times, we may obtain miners and other hardware from third parties at premium prices, to the
extent they are available. This upgrading process requires substantial capital investment, and we may face challenges. Further, the global
supply chain for bitcoin miners is presently heavily dependent on China-based manufacturers. In addition, there have been shortages of
the semiconductors which are key components