Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 497

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 497
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, but we will need
to safeguard the private keys relating to such digital wallets. To the extent such private keys are lost, destroyed or otherwise compromised,
we will be unable to access our bitcoin rewards and such private keys may not be capable of being restored by any network. Any loss of
private keys relating to digital wallets used to store our digital assets 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.

It is possible that,
through computer or human error, theft or criminal action, our digital assets could be transferred in incorrect amounts or to unauthorized
third parties or accounts. In general, digital asset transactions are irrevocable, and stolen or incorrectly transferred digital assets
may be irretrievable, and we may have extremely limited or no effective means of recovering such digital assets.

We safeguard and
keep private our digital assets, including the bitcoin that we mine, by utilizing storage solutions provided by Cactus Custody and
Fireblocks (see “Summary of Information – Custodian Accounts”), which requires multi-factor authentication.
While we are confident in the security of our digital assets held by Cactus Custody and Fireblocks, given the broader market
conditions, there can be no assurance that other digital asset market participants, including Cactus Custody and Fireblocks as our
custodian, will not ultimately be impacted. We continue to monitor the digital assets industry as a whole, although it is not
possible at this time to predict all of the risks stemming from these events that may result to us, our service providers, our
counterparties, and the broader industry as a whole. 

42

Incorrect or fraudulent
bitcoin transactions may be irreversible.

Bitcoin transactions
are irrevocable and stolen or incorrectly transferred digital assets may be irretrievable. As a result, any incorrectly executed or fraudulent
bitcoin transactions could adversely affect our investments and assets.

Bitcoin transactions
are not, from an administrative perspective, reversible without the consent and active participation of the recipient of the digital assets
from the transaction. In theory, bitcoin transactions may be reversible with the control or consent of a majority of processing power
on the network, however, we do not now, nor is it feasible that we could in the future, possess sufficient processing power to affect
this reversal. Once a