Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 60

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 60
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 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.

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 mining pools to receive
our mining rewards from the network. Mining pools allow miners to combine their processing power, increasing their chances of solving
a block and getting paid by the network. The rewards are distributed by the pool operator, proportionally to our contribution to the pool’s
overall mining power, used to generate each block. Should the pool operator’s system suffer downtime due to a cyberattack, software
malfunction or other similar issues, it will negatively impact our ability to mine and receive revenue. Furthermore, we are dependent
on the accuracy of the mining pool operator’s record keeping to accurately record the total processing power provided to the pool
for a given bitcoin mining application in order to assess the proportion of that total processing power we provided. While we have internal
methods of tracking both our power provided and the total used by the pool, the mining pool operator uses its own record-keeping to determine
our proportion of a given reward. We