Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 53

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 53
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 business, prospects or operations and harm investors.

Although we have developed systems and processes
designed to protect the data we manage, prevent data loss and other security breaches, effectively respond to known and potential risks,
and expect to continue to expend significant resources to bolster these protections, there can be no assurance that these security measures
will provide absolute security or prevent breaches or attacks. We have experienced from time to time, and may experience in the future,
breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities, or other irregularities.
Unauthorized parties have attempted, and we expect that they will continue to attempt, to gain access to our systems and facilities, as
well as those of our customers, partners, and third-party service providers, through various means, including hacking, social engineering,
phishing, and attempting to fraudulently induce individuals (including employees, service providers, and our customers) into disclosing
usernames, passwords, payment card information, or other sensitive information, which may, in turn, be used to access our information
technology systems and our digital assets. Threats can come from a variety of sources, including criminal hackers, hacktivists, state-sponsored
intrusions, industrial espionage, and insiders. Certain threat actors may be supported by significant financial and technological resources,
making them even more sophisticated and difficult to detect. As a result, our 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