Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 62

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 62
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 settlement times and attempts to increase the volume of transactions may not be effective.
Scaling digital assets is essential to the widespread acceptance of digital assets as a means of payment, which widespread acceptance
is necessary to the continued growth and development of our business. Many bitcoin networks face significant scaling challenges. For example,
digital assets are limited with respect to how many transactions can occur per second. Participants in the bitcoin ecosystem debate potential
approaches to increasing the average number of transactions per second that the network can handle and have implemented mechanisms or
are researching ways to increase scale, such as increasing the allowable sizes of blocks, and therefore the number of transactions per
block, and sharding (a horizontal partition of data in a database or search engine), which would not require every single transaction
to be included in every single miner’s or validator’s block. However, there is no guarantee that any of the mechanisms in
place or being explored for increasing the scale of settlement of bitcoin transactions will be effective, or how long they will take to
become effective, which could adversely affect an investment in our securities.

The price of digital assets may be affected by the sale of such digital assets by other vehicles investing in digital assets or tracking bitcoin markets.

The global market for digital assets is characterized
by supply constraints that differ from those present in the markets for commodities or other assets such as gold and silver. The mathematical
protocols under which certain digital assets are mined permit the creation of a limited, predetermined amount of currency, while others
have no limit established on total supply. To the extent that other vehicles investing in digital assets or tracking digital assets markets
form and come to represent a significant proportion of the demand for digital assets, large redemptions of the securities of those vehicles
and the subsequent sale of digital assets by such vehicles could negatively affect digital asset prices and therefore affect the value
of the digital asset inventory (i.e., bitcoin and ETH) we hold. The recent introduction of a spot bitcoin exchange traded fund (“ETF”)
and the pending approval of an ETH ETF may attract speculative traders who seek short-term gains based on price movements. This increased
speculative activity could lead to short-term price volatility. 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 and potentially the value of any digital assets we mine or otherwise acquire or hold for our own account.

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