Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 73

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 73
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 may not uphold their side of the deal and fees or penalties may be assessed to the pool. These fees are
typically assessed if the pool operator has downtime or dishonest actions. Finally, blockchains are new technologies and there is always
an outside risk of a catastrophic chain failure that could put locked or staked funds at risk. The speculative and volatile nature of
ETH and blockchain may materially and adversely affect the value of the Company’s securities.

The staked ETH is subject to the volatility risks
set forth under “Speculative and Volatile Nature of ETH” and the risks related to hacking set forth above under “Cyberattacks
and security breaches of our system, or those impacting our third parties, could adversely impact our brand and reputation and our business,
operating results, and financial condition” that could result in a loss of staked ETH.

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The risks involved with liquid staking differ
from direct staking. Liquid staking allows participants, including the Company, to maintain the liquidity of their digital assets while
still earning staking rewards. However, it is subject to the following consequence risks apart from direct staking:

| ● | Liquid staking requires a certain level of technical expertise to manage the staking process effectively. This can be a barrier for some investors, particularly those who are new to the world of digital asset investing. |

| ● | The price of the staked derivative may decrease from its original price. This may happen because the new token has a lower market price. |

| ● | In we lose our liquid token, we will also lose our staked token. This can result from bad trades, rebalancing losses when farming in liquidity pools, and liquidations at lending protocols. |

| ● | Token holders will likely choose to stake their tokens on liquid staking protocols. As a result, the balance of validator shares taking part in the network may be disrupted, giving room for undue control from more powerful validators. |

Development of the Ethereum Platform

The Ethereum platform is an open-source project
being developed by a network of software developers, including Vitalik Buterin, a founder of Ethereum. Mr. Buterin or another key participant
within the core development group could cease to be involved with the Ethereum platform. Factions could form within the Ethereum community,
resulting in different and competing versions of Ethereum being adopted by network participants. Furthermore, network participants running
the Ethereum software may choose not to update their versions of the software, resulting in different versions of the