Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 92

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 92
---
 under federal securities laws, expose it to lawsuits and
restrict its ability to access financing. In addition, the Sarbanes-Oxley Act requires that, among other things, that we establish and
maintain effective internal controls and procedures for financial reporting and disclosure purposes. Internal control over financial reporting
is complex and may be revised over time to adapt to changes in our business, or changes in applicable accounting rules. We cannot assure
you that its internal control over financial reporting will be effective in the future or that a material weakness will not be discovered
with respect to a prior period for which it had previously believed that internal controls were effective. If we are not able to maintain
or document effective internal control over financial reporting, our independent registered public accounting firm will not be able to
certify as to the effectiveness of our internal control over financial reporting.

Matters
affecting our internal controls may cause us to be unable to report its financial information on a timely basis, or may cause it to restate
previously issued financial information, and thereby subject us to adverse regulatory consequences, including sanctions or investigations
by the SEC, or violations of applicable stock exchange listing rules. There could also be a negative reaction in the financial markets
due to a loss of investor confidence in us and the reliability of its financial statements. Confidence in the reliability of our financial
statements is also likely to suffer if it or its independent registered public accounting firm reports a material weakness in its internal
control over financial reporting. This could have a material and adverse effect on us by, for example, leading to a decline in the share
price and impairing its ability to raise additional capital.

<div align='center'>50</div>

New York State Moratorium on Cryptocurrency Mining Operations

On November 22, 2022, the New York State enacted
a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain operations; provided
that such operations shall be subject to a full generic environmental impact statement review. While the Company’s bitcoin mining
operations in upstate New York State use proof-of-work authentication, they were approximately 90% (now 99%) carbon free according to
NYISO Power Trends 2023 Report. The law provides for a two-year moratorium on new applications or new permits for an electric generating
facility that utilizes a carbon-based fuel. Therefore, the Company believes that its New York State hosting facilities, which primarily
depended on hydroelectric power, will be able to comply with the