Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 241

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 241
---
 which addresses the accounting and disclosure requirements for certain crypto assets.
Under this new guidance, entities are required to subsequently measure certain crypto assets at fair value, with changes in fair value
recorded in net income in each reporting period. Besides ASU 2023-08 issued, there has been little official guidance provided by the FASB,
the Public Company Accounting Oversight Board (PCAOB) or the SEC, it is unclear how companies may in the future be required to account
for bitcoin and other digital assets transactions and related revenue recognition. A change in regulatory or financial accounting standards
could result in the necessity to change our accounting methods and restate our financial statements. Such a restatement could adversely
affect the accounting for our newly mined bitcoin rewards and more generally negatively impact our business, prospects, financial condition
and results of operation. Such circumstances would have a material adverse effect on our ability to continue as a going concern or to
pursue our business strategy at all, which would have a material adverse effect on our business, prospects or operations as well as and
potentially the value of any digital assets we hold or expects to acquire for our own account and harm investors.

Risks Related to Previously
Operating in China

We may be subject
to fines and penalties for operating in China without registration.

Prior to the commencement
of the Company’s bitcoin mining business, and before the involvement of any of the Company’s current directors, officers or
employees, Golden Bull Limited formerly operated a peer-to-peer lending business in the PRC, as discussed below. Additionally, from February
2020 to June 2021, the Company operated its bitcoin mining business in the PRC, but completed the migration of all of its bitcoin mining
operations out of China by September 2021.

Pursuant to laws and
regulations of the PRC, there are two ways for foreign legal persons/entities to be considered to be engaging in operation activities
within the territory of China. One way is to establish a foreign-invested enterprise, that is incorporated, according to the Foreign Investment
Law of PRC, within the territory of China and that is wholly or partly invested by a foreign investor. The organization form, institutional
framework and standard of conduct of a foreign-invested enterprise are subject to the provisions of the Company Law of the PRC and the
Partnership Enterprise Law of the PRC and other law related regulations. Another way to be deemed to be operating within China is to complete
the approval