Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 72

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 72
---
 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 actions. Finally, blockchains are new technologies and there is always
an outside risk of a catastrophic chain failure that could put locked or staked funds at risk. The speculative and volatile nature of
ETH and blockchain may materially and adversely affect the value of the Company’s securities.

The staked ETH is subject to the volatility risks
set forth under “Speculative and Volatile Nature of ETH” and the risks related to hacking set forth above under “Cyberattacks
and security breaches of our system, or those impacting our third parties, could adversely impact our brand and reputation and our business,
operating results, and financial condition” that could result in a loss of staked ETH.

<div align='center'>38</div>

The risks involved with liquid staking differ
from direct staking. Liquid staking allows participants, including the Company, to maintain the liquidity of their digital assets while
still earning staking rewards. However, it is