Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 70

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 70
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 as USD
Coin are usually backed by the U.S. Dollar and other short-dated U.S. government obligations, and are usually pegged to the U.S. dollar.
On March 9, 2023, as a result of the closure of Silicon Valley Bank (“SVB”), Circle announced that $3.3 billion of its roughly
$40 billion USD Coin reserves were held at SVB. As a result, Circle depegged the USD Coin from its $1.00 peg, trading as low as $0.87.
In January 2024, Coindesk reported that Circle’s USDC dollar-pegged stablecoin fell to as low at $0.74 on three separate occasions
following a marketwide sell-off spurred by a report casting doubt over whether a spot bitcoin ETF will be approved. Such a risk may result
in the sell-off of USD Coin and volatility as to the value of stablecoins, which would expose us to risk of potential loss and could have
a material adverse effect on our ability to raise new funding and on our business, financial condition, and results of operations and
prospects.

Ethereum Risk Factors

Risks Associated with Staking on Ethereum 2.0

In connection with the transition of the Ethereum
network from PoW to PoS, which occurred on September 15, 2022, when the Ethereum Mainnet merged with the PoS Beacon Chain (the “Merge”),
the Company is deploying Ethereum (ETH) to the beacon chain with a view to earning an ETH-denominated return thereon. On April 12, 2023,
Ethereum’s Shanghai hard fork, also referred to as “Shapella,” has been finalized, enabling withdrawals for users who
have “staked” their ETH to secure and validate transactions on the blockchain.

In addition, by running a validator node, the
Company will be exposed to the risk of loss of its staked digital assets if it equivocates or fails to operate the node in accordance
with applicable protocol rules, as the Company’s digital assets may be “slashed” or inactivity penalties may be applied
if the validator node “double signs” or is offline for a prescribed period of time. Disputes on a liquid staking provider
may lead to the value of staking assets diverging from ETH or failure to exit the liquid staking position. The Company intends to mitigate
this risk by utilizing experienced service providers such as Figment for native staking