Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 207

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 207
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 has been verified and recorded in a block that is added to a blockchain, an incorrect transfer of a
bitcoin or a theft thereof generally will not be reversible, and we may not have sufficient recourse to recover our losses from any such
transfer or theft. It is possible that, through computer or human error, or through theft or criminal action, our bitcoin rewards could
be transferred in incorrect amounts or to unauthorized third parties, or to uncontrolled accounts. Further, according to the SEC, at this
time, there is no specifically enumerated U.S. or foreign governmental, regulatory, investigative or prosecutorial authority or mechanism
through which to bring an action or complaint regarding missing or stolen bitcoin. We are, therefore, presently reliant on existing private
investigative entities, such as Chainalysis and Kroll, to investigate any potential loss of our bitcoin assets. These third-party service
providers rely on data analysis and compliance of ISPs with traditional court orders to reveal information such as the IP addresses of
any attackers who may have targeted us. To the extent that we are unable to recover our losses from such action, error or theft, 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 of and potentially the value of any bitcoin or other digital
assets we mine or otherwise acquire or hold for our own account.

Our reliance primarily
on a few models of miners may subject our operations to increased risk of mining failure.

The performance and reliability
of our miners and our technology is critical to our reputation and our operations. Because we currently use MicroBT and Bitmain miners,
if there are issues with those machines, our entire system could be affected. Any system error or failure may significantly delay response
times or even cause our system to fail. Any disruption in our ability to continue mining could result in lower yields and harm our reputation
and business. Any exploitable weakness, flaw, or error common to MicroBT and Bitmain miners affects all our miners, and if a defect other
flaw is exploited, our entire mining operations could go offline simultaneously. Any interruption, delay or system failure could result
in financial losses, a decrease in the trading price of our Ordinary Shares and/or damage to our reputation.

The Company’s
reliance on a third-party mining pool service provider for our mining revenue payouts may have a negative impact on the Company’s
operations.

We use third–party