Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 72

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 72
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 contractors.

Speculative and Volatile Nature of ETH

To date, the Company has deployed a portion of
the capital it has raised into ETH. The price of ETH is subject to significant 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