Company: BTBT
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001213900-25-093122
Chunk: 148

Company: Bit Digital, Inc
Filing Date: 2025-09-29
Form: 424B5
Chunk 148
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 imposed on the resulting tax attributable to each such year.                              |

The tax liability for amounts
allocated to years prior to the year of disposition or “excess distribution” cannot be offset by any net operating losses
for such years, and gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you hold
the Ordinary Shares as capital assets.

A
U.S. Holder of “marketable stock” (as defined below) in a PFIC may make a mark-to-market election for such stock to elect
out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed
to hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the
excess, if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your adjusted basis in such
Ordinary Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess,
if any, of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable year. However, such
ordinary loss is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in your income for prior
taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition
of the Ordinary Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale
or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously
included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts.

The mark-to-market election
is available only for “marketable stock”, which is stock that is traded in other than de minimis quantities on at least 15
days during each calendar quarter (“regularly traded”) on a qualified exchange or other market (as defined in applicable
U.S. Treasury regulations), including Nasdaq. If the Ordinary Shares are regularly traded on Nasdaq and if you are a holder of Ordinary
Shares, the mark-to-market election would be available to you if we are or become a PFIC.

A
mark-to-market election will not apply to Ordinary Shares for any taxable