Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 68

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 68
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 the ordering of transactions, though it
is believed that it could not generate new units or transactions using such control. The malicious actor could “double-spend”
its own digital asset (i.e., spend the same digital asset in more than one transaction) and prevent the confirmation of other users’
transactions for as long as it maintained control. To the extent that such malicious actor or botnet yields its control of the processing
power on the network or the bitcoin and/or Ethereum communities do not reject the fraudulent blocks as malicious, reversing any changes
made to blockchains may not be possible. The foregoing description is not the only means by which the entirety of blockchains or digital
assets may be compromised but is only an example.

Although there are no known reports of malicious
activity or control of blockchains achieved through controlling over 50% of the processing power on the bitcoin network, it is believed
that certain mining pools may have exceeded the 50% threshold in bitcoin. The possible crossing of the 50% threshold for bitcoin or 33%
for Ethereum indicates a greater risk that a single mining pool could exert authority over the validation of digital asset transactions.
To the extent that the digital asset ecosystem, and the administrators of mining pools, do not act to ensure greater decentralization
of digital asset mining processing power, the feasibility of a malicious actor obtaining control of the processing power will increase
because the botnet or malicious actor could compromise more than the threshold and thereby gain control of the blockchain, whereas if
the blockchain remains decentralized it is inherently more difficult for the botnet of malicious actor to aggregate enough processing
power to gain control of the blockchain, which may adversely affect an investment in our Ordinary Shares. Such lack of controls and responses
to such circumstances could have a material adverse effect on our ability to continue as a going concern or to pursue our new 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.

We are subject to risks associated with our need for significant electrical power. Government regulators may potentially restrict the ability of electricity suppliers to provide electricity to mining operations, such as ours.

The operation of a bitcoin or other digital asset
mine can require massive amounts of electrical power. Further, our mining operations can only be successful and ultimately profitable
if the costs, including electrical power costs, associated with mining a bitcoin are lower than the price of a bitcoin.