Company: BTBT
Filing Date: 2025-10-01
Form Type: 424B5
Source: 0001213900-25-094778
Chunk: 101

Company: Bit Digital, Inc
Filing Date: 2025-10-01
Form: 424B5
Chunk 101
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, Repurchase or Taxable Disposition of the Notes” above, subject to the discussion in the section titled “—Constructive Distributions” below regarding the possibility that an adjustment to the conversion rate of a note converted in connection with a make-whole fundamental change or during a redemption period or for which the interest make-whole provision applies may be treated as a taxable stock dividend.

If a U.S. Holder receives solely ordinary shares (and, if applicable, cash in lieu of a fractional share) in exchange for notes upon conversion, the U.S. Holder generally will not recognize gain or loss on the conversion of the notes into ordinary shares, except to the extent of cash received in lieu of a fractional share (which could give rise to capital gain or loss, as described below), subject to the discussion under “—Constructive Distributions” below regarding the possibility that an adjustment to the conversion rate of a note converted in connection with a make-whole fundamental change or during a redemption period or for which the interest make-whole provision applies may be treated as a taxable stock dividend. The U.S. Holder’s aggregate tax basis in the ordinary shares (including any fractional share deemed to be received by the U.S. Holder) will equal the U.S. Holder’s adjusted tax basis in the note that was converted. A U.S. Holder’s tax basis in a fractional share will be determined by allocating such holder’s tax basis in the ordinary shares, as determined in accordance with the previous sentence, between the ordinary shares actually received and the fractional share deemed received upon conversion, in accordance with their respective fair market values. The U.S. Holder’s holding period in the ordinary shares will include the period during which the U.S. Holder held the notes.

The U.S. federal income tax treatment of the conversion of a note into a combination of cash and ordinary shares is uncertain, and U.S. Holders should consult their tax advisors regarding the consequences of such a conversion. In general, the U.S. federal income tax treatment will depend on whether the conversion is treated as a recapitalization or alternatively as a conversion of a portion of the note for ordinary shares and a taxable sale of a portion of the note for cash. The conversion can only be treated as a recapitalization if the notes are treated as “securities” for U.S. federal income tax purposes. The term “security” is not defined in the Code or the U.S. Treasury Regulations and has not been defined clearly by judicial decisions. The determination of whether a particular obligation