Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 56

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 56
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 transaction fees. If transaction fees paid for bitcoin transactions become too high, the marketplace
may be reluctant to accept bitcoin as a means of payment and existing users may be motivated to switch from bitcoin to another digital
asset or to fiat currency. Either the requirement from miners of higher transaction fees in exchange for recording transactions in a blockchain
or a software upgrade that automatically charges fees for all transactions may decrease demand for bitcoin and prevent the expansion of
the bitcoin network to retail merchants and commercial businesses, resulting in a reduction in the price of bitcoin that could adversely
impact an investment in our securities. Decreased use of and demand for bitcoin may adversely affect its value and result in a reduction
in the price of bitcoin and, consequently, the value of our Ordinary Shares.

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The decentralized nature of the governance of
bitcoin systems may lead to ineffective decision making that slows development or prevents a network from overcoming emergent obstacles.
Governance of many bitcoin systems is by voluntary consensus and open competition with no clear leadership structure or authority. To
the extent lack of clarity in corporate governance 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