Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 236

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 236
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 an investment company under the Investment Company Act,
we would be required to register with the SEC. If an investment company fails to register, it likely would have to stop doing almost all
business, and its contracts would become voidable. Generally non-U.S. issuers may not register as an investment company without an SEC
order.

The classification of
a digital asset as a security under the applicable law has wide-ranging implications for the regulatory obligations that flow from the
mining, sale and trading of such assets. For example, a digital asset that is a security in the United States may generally only be offered
or sold in the United States pursuant to a registration statement filed with the SEC or in an offering that qualifies for an exemption
from registration. Persons that effect transactions in digital assets that are deemed securities in the United States may be subject to
registration with the SEC as a “broker” or “dealer.”

There can be no assurances
that we will properly characterize any given digital asset as a security or non-security for purposes of determining which digital assets
to mine, hold and trade, or that the SEC, or a court, if the question was presented to it, would agree with our assessment. We could be
subject to judicial or administrative sanctions for failing to offer or sell digital assets in compliance with the registration requirements,
or for acting as a broker or dealer without appropriate registration. Such an action could result in injunctions, cease and desist orders,
as well as civil monetary penalties, fines, and disgorgement, criminal liability, and reputational harm. Further, if bitcoin is deemed
to be a security under the laws of any U.S. federal, state, or local jurisdiction, or in a proceeding in a court of law or otherwise,
it may have adverse consequences for such digital asset. For instance, all transactions in such supported digital asset would have to
be registered with the SEC, or conducted in accordance with an exemption from registration, which could severely limit its liquidity,
usability and transactability. For instance, all transactions in such supported digital asset would have to be registered with the SEC,
or conducted in accordance with an exemption from registration, which could severely limit its liquidity, usability and transactability.
Further, it could draw negative publicity and a decline in the general acceptance of the digital asset. Also, it may make it difficult
for such digital asset to be traded, cleared, and custodied as compared to other digital assets that are not considered to be securities.

58

Enactment