Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 203

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 203
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 of bitcoin systems leads to ineffective decision making that slows
development and growth of such digital assets, the value of our Ordinary Shares may be adversely affected.

There is a lack
of liquid markets for digital assets, and blockchain/bitcoin-based assets are susceptible to potential manipulation.

Digital assets that are
represented and trade on a ledger-based platform may not necessarily benefit from viable trading markets. Stock exchanges have listing
requirements and vet issuers; requiring them to be subjected to rigorous listing standards and rules and monitor investors transacting
on such platform for fraud and other improprieties. These conditions may not necessarily be replicated on a distributed ledger platform,
depending on the platform’s controls and other policies. As described above under “Unfavorable Digital Asset Market Conditions,”
recent bankruptcies in the digital assets industry involved platforms which were not publicly listed without regulatory supervision. The
laxer a distributed ledger platform is about vetting issuers of bitcoin assets or users that transact on the platform, the higher the
potential risk for fraud or the manipulation of the ledger due to a control event. These factors may decrease liquidity or volume or may
otherwise increase volatility of investment securities or other assets trading on a ledger-based system, which may adversely affect us.
Such circumstances 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 and potentially the value of any bitcoin or
other digital assets we mine or otherwise acquire or hold for our own account and harm investors.

Our operations,
investment strategies and profitability may be adversely affected by competition from other methods of investing in digital assets.

We compete with other
users and/or companies that are mining digital assets and other potential financial vehicles, including securities backed by or linked
to digital assets through entities similar to us. Market and financial conditions, and other conditions beyond our control, may make it
more attractive to invest in other financial vehicles, or to invest in digital assets directly, which could limit the market for our shares
and reduce their liquidity. The emergence of other financial vehicles and exchange-traded funds have been scrutinized by regulators and
such scrutiny and the negative impressions or conclusions resulting from such scrutiny could be applicable to us and impact our ability
to successfully pursue our business strategy or operate at all, or to maintain a public market for our securities. Such circumstances
could have a material adverse effect on our ability to continue as a going concern or to pursue our business strategy at all,