Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 98

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 98
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-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.

Enactment of the Infrastructure Investment and Jobs Act of 2021 (the “Infrastructure Act”) may have an adverse impact on our business and financial condition.

On November 15, 2021, President Joseph R. Biden
signed the Infrastructure Act. Section 80603 of the Infrastructure Act modifies and amends the Internal Revenue Code of 1986 (the “Code”)
by requiring brokers of digital asset transactions to report their customers to the IRS. This provision was included to enforce the taxability
of digital asset transactions. Section 80603 defines “broker” as “any person who (for consideration) is responsible
for regularly providing any service effectuating transfers of digital assets on behalf of another person.” That could potentially
include miners, validators, and developers of decentralized applications. These functions play a critical role in our business and in
the functioning of the blockchain ecosystem. Importantly, these functions have no way of identifying their anonymous users. Indeed, bitcoin’s
blockchain was designed for anonymity