Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 510

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 510
---
 volatility. In addition, there
is no guarantee that the Company will be able to sell its ETH at prices quoted on various cryptocurrency trading platforms or at all if
it determines to do so. The supply of ETH is currently controlled by the source code of the Ethereum platform, and there is a risk that
the developers of the code and the participants in the Ethereum network could develop and/or adopt new versions of the Ethereum software
that significantly increase the supply of ETH in circulation, negatively impacting the trading price of ETH. Any significant decrease
in the price of ETH may materially and adversely affect the value of the Company’s securities and, in turn, the Company’s
business and financial condition.

The ETH markets are sensitive
to new developments, and since volumes are still maturing, any significant changes in market sentiment (by way of sensationalism in the
media or otherwise) can induce large swings in volume and subsequent price changes. Such volatility can adversely affect the business
and financial condition of the Company.

Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the public, accounts for anticipated future appreciation
in value. The Company believes that momentum pricing of ETH has resulted, and may continue to result, in speculation regarding future
appreciation in the value of ETH, inflating and making more volatile the value of ETH. As a result, ETH may be more likely to fluctuate
in value due to changing investor confidence in future appreciation, which could adversely affect the business and financial condition
of the Company.

Underlying Value
Risk

ETH represents a relatively
new form of digital value that is still being digested by society. Its underlying value is driven by its utility as a store of value,
means of exchange, and unit of account, and notably, the demand for ETH within various use cases of the Ethereum network. Just as oil
is priced by the supply and demand of global markets, as a function of its utility to, for instance, power machines and create plastics,
so too is ETH priced by the supply and demand of global markets for its own utility within Ethereum’s use cases. There is a risk
if we are working through a staking pool to valuate ETH investors. We rely upon a pool operator to run the validator. There is a counterparty
risk that the party with which we trust our assets 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