Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 68

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 68
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 result in further
tightening of profit margins for professionalized mining operations creating a network effect that may further reduce the price of bitcoin
until mining operations with higher operating costs become unprofitable forcing them to reduce mining power or cease mining operations
temporarily.

If a malicious actor or botnet obtains control of more than 50% of the processing power on a bitcoin network, or 33% or more share of the Ethereum Validators, such actor or botnet could manipulate blockchains to adversely affect us, which would adversely affect an investment in us or our ability to operate.

If a malicious actor or botnet (a volunteer or
hacked collection of computers controlled by networked software coordinating the actions of the computers) obtains a majority of the processing
power dedicated to mining a bitcoin, or the ability to valuate Ethereum transactions, it may be able to alter blockchains on which transactions
of bitcoin or 33% or more of ETH reside and rely by constructing fraudulent blocks or preventing certain transactions from completing
in a timely manner, or at all. The malicious actor or botnet could control, exclude or modify the ordering of transactions, though it
is believed that it could not generate new units or transactions using such control. The malicious actor could “double-spend”
its own digital asset (i.e., spend the same digital asset in more than one transaction) and prevent the confirmation of other users’
transactions for as long as it maintained control. To the extent that such malicious actor or botnet yields its control of the processing
power on the network or the bitcoin and/or Ethereum communities do not reject the fraudulent blocks as malicious, reversing any changes
made to blockchains may not be possible. The foregoing description is not the only means by which the entirety of blockchains or digital
assets may be compromised but is only an example.

Although there are no known reports of malicious
activity or control of blockchains achieved through controlling over 50% of the processing power on the bitcoin network, it is believed
that certain mining pools may have exceeded the 50% threshold in bitcoin. The possible crossing of the 50% threshold for bitcoin or 33%
for Ethereum indicates a greater risk that a single mining pool could exert authority over the validation of digital asset transactions.
To the extent that the digital asset ecosystem, and the administrators of mining pools, do not act to ensure greater decentralization
of digital asset mining processing power, the feasibility of a malicious actor obtaining control of the processing power will increase
because the botnet or malicious