Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 102

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 102
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 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. Although the statute of limitations for non-compliance by our former business in the PRC is generally two years
and the Company has been out of the PRC, for more than two years, the Authority may still find that our prior bitcoin mining operations
involved a threat to financial security. In such event, the two-year period would be extended to five years.

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 and
registration procedures with the relevant regulatory authorities in accordance with the provisions of Administrative Measures for the
Registration of Enterprises of Foreign Countries (Regions) Engaging in Production and Operation Activities within the Territory of China
(Revised in 2020), or Order No.31. However, in view of the ban on all new digital asset operations in China, we terminated the process
of forming a subsidiary in mainland China. Since our Hong Kong subsidiary had not obtained business licenses in mainland China where Bit
Digital Hong Kong used to carry out business, it may lead to a punishment of a warning, fine, confiscation of income and/or