Company: BTBT
Filing Date: 2025-10-01
Form Type: 424B5
Source: 0001213900-25-094778
Chunk: 104

Company: Bit Digital, Inc
Filing Date: 2025-10-01
Form: 424B5
Chunk 104
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 of cash in lieu of a fractional share will generally result in the recognition of capital gain or loss measured by the difference between the cash received for the fractional share and the portion of the U.S. Holder’s tax basis allocable to the fractional share. Any such gain or loss recognized will generally be treated in the same manner as described above under “—Sale, Exchange, Redemption, Repurchase or other Taxable Disposition of the Notes.”

As described in “Description of the Notes—Conversion Rights,” our delivery of cash, ordinary shares or a combination of cash and ordinary shares will be deemed to satisfy our obligation with respect to accrued and unpaid interest on the notes. We intend to take the position that, upon a conversion of notes, accrued and unpaid interest is paid first by any cash paid upon such conversion and then by any ordinary shares.

U.S. Holders should consult their tax advisors regarding the tax treatment of the receipt of cash and ordinary shares for notes upon conversion.

Exchange in Lieu of Conversion

If a U.S. Holder surrenders notes for conversion, we direct the notes to be offered to a financial institution for exchange in lieu of conversion, and the designated institution accepts the notes and delivers ordinary shares (and cash in lieu of a fractional share, if applicable), cash or a combination of cash and ordinary shares in exchange for the notes, the U.S. Holder will be taxed on the transfer as a sale or exchange of the notes, as described above in the section titled “—Sale, Exchange, Redemption, Repurchase, or Other Taxable Disposition of Notes.” In such case, the U.S. Holder’s tax basis in the ordinary shares received will equal the fair market value of the stock on the date of the exchange and its holding period in the ordinary shares received will begin the day after the date of the exchange.

Possible Effect of the Change in Conversion Consideration

In the event we undergo certain of the events described in the section titled “Description of the Notes—Recapitalizations, Reclassifications and Changes of the Ordinary Shares” or “Description of the Notes—Consolidation, Merger and Sale of Assets,” the conversion rate and the related conversion consideration may be adjusted such that a U.S. Holder would be entitled to convert its notes into shares, property or assets other than our ordinary shares.

Depending on the facts and circumstances at the time of such event, such adjustment may result in a deemed exchange of the outstanding notes as in place prior to such event for “new” notes as in place after