Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 70

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 70
---
 may
have to manage transitions to these new technologies to remain competitive. We may not be successful, generally or relative to our competitors
in the digital asset industry, in timely implementing new technology into our systems, or doing so in a cost-effective manner. During
the course of implementing any such new technology into our operations, we may experience system interruptions and failures during such
implementation. Furthermore, there can be no assurances that we will recognize, in a timely manner or at all, the benefits that we may
expect as a result of our implementing new technology into our operations. As a result, our business and operations may suffer, and there
may be adverse effects on the price of our Ordinary Shares.

The value of stable coins that we hold may be subject to volatility and risk of loss

As of March 31, 2025, we held approximately $1.036
million in USD Coin, a stablecoin issued by Circle Internet Financial Public Limited Company (“Circle”) that is backed by
dollar denominated assets held by the issuer in segregated accounts with U.S. regulated financial institutions. Stablecoins such 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