Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 77

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 77
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 problems such as two
copies of a token for the same non-fungible tokens (NFTs). It could also present a problem for a customer having to choose to provide
services with respect to digital assets resulting from a fork. In addition, digital asset loan agreements often dictate when and how each
of the lender or the borrower of a digital asset pledging a certain digital asset gets the benefit of forked coins in the event of a hard
fork. Similarly, derivative counterparties using ISDA-based contractual documentation may be subject to hard fork-related termination
events.

Although forks are likely to be addressed by a
community-led effort to merge the two groups, such a fork could still adversely affect ETH’s viability.

Risk if a Person Gains a 33% or More Share of the Ethereum Validators

According to Ethereum.org, the likelihood of successful
attacks on the Ethereum network increases as the proportion of staked ETH controlled by the attacker increases. If an attacker controls
33% or more of the total stake, they can prevent the chain from finalizing by having 33% or more of the staked ETH maliciously attesting
or failing to attest. If an attacker controls about 50% of the total stake, they could theoretically split the chain into two equally
sized forks and then simply use their entire 50.1% stake to vote contrarily to the honest validator set, thereby maintaining the two forks
and preventing finality. If an attacker controls 66% or more of the total stake, they simply vote for their preferred fork and then finalize
it, simply because they can vote with a dishonest supermajority.

Dependence on the Internet

ETH stakers relay transactions to one another
via the Internet, and when blocks are mined, they are also forwarded via the Internet. Users and developers access Ethereum via the Internet.
Thus, the Ethereum network is dependent upon the continued functioning of the Internet.

Attacks on the Ethereum Network

The Ethereum network is periodically subject to
distributed denial of service attacks to clog the list of transactions being tabulated by miners, which can slow the confirmation of authentic
transactions. Another avenue of attack would be if a large number of miners were taken offline then it could take some time before the
difficulty of the mining process algorithmically adjusts, which would stall block creation time and therefore transaction confirmation
time. Thus far these scenarios have not plagued the network for long or in a systemic manner. This risk is expected to be substantially
mitigated on Ethereum