Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 78

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 78
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 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 2.0, as the PoS method of validating transactions was expected to improve the speed and efficiency of the network.

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Decrease in Block Reward or Yield

In the event of a material decrease in the block
reward to the Ethereum network, stakers may cease to provide their staked ETH to the consensus mechanism for the Ethereum network blockchain.
This risk was expected to be mitigated in part on Ethereum 2.0, as the rewards earned by stakers of ETH will proportionately decline as
more stakers participate in the network. Conversely, if some stakers decide to stop participating because the yield is too low, remaining
stakers will enjoy a higher yield. Consequently, Ethereum 2.0 is expected to attract a sufficient number of stakers and validators to
keep the network running efficiently.

Competitors to ETH and the Ethereum Network

Currently, ETH is the second largest digital asset
by market capitalization, with Coingecko citing more than 5,000 alternative digital assets. To the extent a competitor to ETH gains popularity
and greater market share, the use and price of ETH could be negatively impacted, which may adversely affect the investments of the Company.
Similarly, the price of ETH could be negatively impacted by competition from incumbents in the credit card and payments industries or
from other developing blockchain protocols.

Financial Institutions may Refuse to Support Transactions Invol