Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 247

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 247
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ing Consular Privileges and Immunities; Law of the PRC on the National
Emblem; Law of the PRC on the Territorial Sea and the Contiguous Zone; Law of the PRC on Garrisoning the Hong Kong Special Administrative
Region; Law of the PRC on the Exclusive Economic Zone and the Continental Shelf; Law of the PRC on Judicial Immunity from Compulsory Measures
Concerning the Property of Foreign Central Banks; and Law of the PRC on the National Anthem; Law of the PRC on Safeguarding National Security
in the Hong Kong Special Administrative Region.”

As of the date of this
report, the Hong Kong subsidiaries have not established any subsidiary or branch in mainland PRC and are not conducting any business operations
in mainland PRC.

However, due to changes
in laws, regulations or policies, including how these laws, regulations or policies would be interpreted or implemented, the national
laws applicable in Hong Kong in the Basic Law might be revised in the future.

Therefore, we cannot
assure you that we will not be affected by the foregoing or relevant laws, regulations or policies in the future, if there are any changes
to the foregoing laws, regulations and policies, or if any new laws, regulations, and policies are published. We could not guarantee that
the relevant laws, regulations, or policies would not be applied retroactively, so we might face penalties, and our reputation and results
of operations could be materially and adversely affected.

Enhanced scrutiny
over acquisition transactions by the PRC tax authorities may have a negative impact on the indirect transfer of equity in the past and
potential acquisitions we may pursue in the future.

The PRC tax authorities
have enhanced their scrutiny over the direct or indirect transfer of certain taxable assets, including, in particular, equity interests
in a PRC resident enterprise, by a non-resident enterprise by promulgating and implementing SAT Circular 59 and Circular 698, which became
effective in January 2008, and a Circular 7 to replace some of the existing rules in Circular 698, which became effective in February
2015.

Under Circular 7, where
a non-resident enterprise conducts an “indirect transfer” by transferring the equity interests of a PRC “resident enterprise”
indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise, being the transferor, may
be subject to PRC enterprise income tax if the indirect transfer is considered to be