Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 55

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 55
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 profit from the short- or long-term holding of the asset. Price volatility undermines any bitcoin’s role as a medium
of exchange, as retailers are much less likely to accept it as a form of payment. Market capitalization for a bitcoin as a medium of exchange
and payment method may always be low.

The relative lack of acceptance of bitcoins in
the retail and commercial marketplace, or a reduction of such use, limits the ability of end users to use them to pay for goods and services.
Such lack of acceptance or decline in acceptances could have a material adverse effect on our ability to continue as a going concern or
to pursue our business strategy at all, which could have a material adverse effect on our business, prospects or operations and potentially
the value of bitcoins we mine or otherwise acquire or hold for our own account.

Transactional fees may decrease demand for bitcoin and prevent expansion.

Currently, miners receive both rewards of new
bitcoin and transaction fees paid in bitcoin by persons engaging in bitcoin transactions on the bitcoin blockchain for being the first
to solve bitcoin blocks. As the number of bitcoins currency rewards awarded for solving a block in a blockchain decreases, the incentive
for miners to continue to contribute to the bitcoin network may transition from a set reward and transaction fees to solely transaction
fees. This transition could be accomplished by miners independently electing to record in the blocks they solve only those transactions
that include payment of the highest transaction fees. If transaction fees paid for bitcoin transactions become too high, the marketplace
may be reluctant to accept bitcoin as a means of payment and existing users may be motivated to switch from bitcoin to another digital
asset or to fiat currency. Either the requirement from miners of higher transaction fees in exchange for recording transactions in a blockchain
or a software upgrade that automatically charges fees for all transactions may decrease demand for bitcoin and prevent the expansion of
the bitcoin network to retail merchants and commercial businesses, resulting in a reduction in the price of bitcoin that could adversely
impact an investment in our securities. Decreased use of and demand for bitcoin may adversely affect its value and result in a reduction
in the price of bitcoin and, consequently, the value of our Ordinary Shares.

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The decentralized nature of the governance of
bitcoin systems may lead to ineffective decision making that slows development or prevents a network from overcoming emergent obstacles.
Governance of many bitcoin systems is by voluntary consensus and open competition with no clear leadership structure or authority. To
the extent lack of clarity in corporate governance of bitcoin systems