Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 261

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 261
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 the above, our shareholders may have more difficulty in protecting their interests through actions against us or our
officers, directors or major shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.

You may experience difficulties in effecting
service of legal process and enforcing judgments against us and our management, and the ability of U.S. authorities to bring actions abroad.

Currently,
a portion of our operations and of our assets and personnel are located outside the United States. All three (3) members of our Board
of Directors are nationals or residents of jurisdictions other than the United States, and a substantial portion, if not all, of their
assets are located outside the United States. As a result, it may be difficult for a shareholder to effect service of process within the
United States upon these persons, or to enforce against us or them judgments obtained in U.S. courts, including judgments predicated upon
the civil liability provisions of the securities laws of the United States or any state in the United States. Foreign countries may have
no arrangement for the reciprocal enforcement of judgments with the United States. As a result, recognition and enforcement in a foreign
country of judgments of a court in the United States and any of the other jurisdictions in relation to any matter not subject to a binding
arbitration provision may be difficult or impossible. Even if you sue successfully in a U.S. court or any other jurisdictions, you may
not be able to collect on such judgment against us or our directors and officers. In addition, the SEC, the U.S. Department of Justice
and other U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or officers outside
the United States.

71

If we are classified as a passive foreign
investment company, United States taxpayers who own our Ordinary Shares may have adverse United States federal income tax consequences.

A
non-U.S. corporation such as ourselves will be classified as a passive foreign investment company, which is known as a PFIC, for any taxable
year if, for such year, either

●at
least 75% of our gross income for the year is passive income; or

●the
average percentage of our assets (determined at the end of each quarter) during the taxable year which produce passive income or which
are held for the production of passive income is at least 50%.

Passive
income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a