Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 74

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 74
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 Ethereum software
running on the network. Any of the foregoing developments could have a significant negative impact on the viability and overall health
of the Ethereum platform, the value of ETH and the Company’s business model and assets.

The beacon chain (the PoS successor to the Ethereum
PoW chain) launched in December 2020 and the “merging” of the Ethereum PoW chain into Ethereum 2.0 occurred on September 15,
2022. In addition, Ethereum’s Shanghai hard fork, also referred to as “Shapella,” has been finalized on April 12, 2023,
enabling withdrawals for users who have “staked” their ETH to secure and validate transactions on the blockchain. Although
management believes that these changes to the Ethereum platform will positively impact its potential for mainstream adoption, no assurance
can be given that such impact will materialize. If the Company cannot successfully anticipate and react to the impacts of this shift,
its business and results of operations may be adversely affected.

Uncertainty Regarding the Growth of Blockchain and Web 3 Technologies

The further development and use of blockchain,
Web 3 technologies and digital assets are subject to a variety of factors that are difficult to evaluate and predict, many of which are
beyond the Company’s control. The slowing or stopping of the development or acceptance of blockchain networks, specifically Ethereum,
and blockchain assets would be expected to have a material adverse effect on the Company. Furthermore, blockchain and Web 3 technologies,
including Ethereum, may never be implemented to a scale that provides identifiable economic benefit to blockchain-based businesses, including
the Company.

The Ethereum network and ETH as digital asset
have a limited history. Due to this short history, it is not clear how all elements of ETH will unfold over time, specifically with regard
to governance between miners, developers and users, as well as the long-term security model as the rate of inflation of ETH decreases.
Since the ETH community has successfully navigated a considerable number of technical and political challenges since its inception, the
Company believes that it will continue to engineer its way around future challenges. The history of open-source software development would
indicate that vibrant communities are able to change the software under development at a pace sufficient to stay relevant. The continuation
of such vibrant communities is not guaranteed, and insufficient software development or any other unforeseen challenges that the community
is not able to navigate could have an adverse impact on the business of the Company.

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Potential Decrease in Global Demand