Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 513

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 513
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with it as an international means of exchange. Speculators and investors using ETH as a store of value then layer on top of means of exchange
users, creating further demand. If consumers stop using ETH as a means of exchange, or its adoption therein slows, then ETH’s price
may suffer, adversely affecting the Company.

Investors should be aware
that there is no assurance that ETH will maintain its long-term value in terms of purchasing power in the future or that the acceptance
of ETH for payments by mainstream retail merchants and commercial businesses will continue to grow. As relatively new products and technologies,
ETH and the Ethereum network have yet to become generally accepted as a means of payment for goods and services by major retail and commercial
outlets, and use of ETH by consumers to pay such retail and commercial outlets remains limited. Banks and other established financial
institutions may refuse to process funds for Ethereum network-based transactions, process wire transfers to or from digital asset trading
platforms, Ethereum-related companies or service providers, or maintain accounts for persons or entities transacting in ETH. Conversely,
a significant portion of ETH demand is generated by speculators and investors seeking to profit from the short or long-term holding of
ETH. The Company believes that, like any commodity, ETH will fluctuate in value, but over time will gain a level of acceptance as a store
of value, medium of exchange or token of utility.

Smart Contract
Risk

The Ethereum network
is based upon the development and deployment of smart contracts, which are self-executing contracts with the terms of the agreement written
into software code. There are thousands of smart contracts currently running on Ethereum network. Like any software code, smart contracts
are exposed to risk that the code contains a bug or other security vulnerability, which can lead to loss of assets that are held on or
transacted through the contract. The smart contract deployed on Ethereum and, as such, may contain a bug or other vulnerability that may
lead to the loss of digital assets held in the wallet. The Ethereum developer community audits widely used smart contracts frequently
and publishes the results of such audits on public forums. The Company currently relies on MarsLand for its native staking and Liquid
Collective for its liquid staking solution. The smart contract code via MarsLand was audited by CertiK. The smart contract code via Liquid
Collective was audited by Halborn and Spearbit. Nevertheless, there is no guaranty against a bug or other vulnerability leading to a loss
of digital