Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 54

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 54
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 costs and the resources we devote to protecting against
these advanced threats and their consequences may continue to increase over time.

We may suffer significant and adverse effects due to hacking or one or more adverse software events.

In order to minimize risk, we have established
processes to manage wallets that are associated with our digital assets holdings. There can be no assurances that any processes we have
adopted or will adopt in the future are or will be secure or effective, and we would suffer significant and immediate adverse effects
if we suffered a loss of our digital assets due to an adverse software or cybersecurity event. We utilize several layers of threat reduction
techniques, including: (i) the use of hardware wallets to store sensitive private key information; (ii) performance of transactions
offline; and (iii) offline generation storage and use of private keys.

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The Company is evaluating several third-party
custodian wallet alternatives, but there can be no assurance that such services will be more secure than those the Company presently employs.
Human error and the constantly evolving state of cybercrime and hacking techniques may render present security protocols and procedures
ineffective in ways which we cannot predict. If our security procedures and protocols are ineffectual and our digital assets are compromised
by cybercriminals, we may not have adequate recourse to recover our losses stemming from such compromise and we may lose much of the accumulated
value of our bitcoin mining activities. This would have a material adverse impact on our business and operations.

The impact of geopolitical and economic events on the supply and demand for digital assets is uncertain.

Geopolitical crises may motivate large-scale purchases
of bitcoin and other digital assets, which could increase the price of bitcoin and other digital assets rapidly. This may increase the
likelihood of a subsequent price decrease as crisis-driven purchasing behavior dissipates, adversely affecting the value of our inventory
following such downward adjustment. Such risks are similar to the risks of purchasing commodities in general uncertain times, such as
the risk of purchasing, holding or selling gold. Alternatively, as an emerging asset class with limited acceptance as a payment system
or commodity, global crises and general economic downturn may discourage investment in digital assets as investors focus their investment
on less volatile asset classes as a means of hedging their investment risk.

As an alternative to fiat currencies that are
backed by central governments, digital assets, which are relatively new, are subject to supply and demand forces. How such supply and
demand will be impacted by geopolitical events is largely uncertain