Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 126

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 126
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 would be characterized as a passive foreign
investment company (“PFIC”) for U.S. federal income tax purposes. While the Company’s Management has obtained a third-party
analysis for 2024 and does not believe that the Company should be classified as a PFIC for 2024, PFIC status is determined annually, and
whether the Company will be a PFIC for any future taxable year is uncertain. Moreover, the Company is not committing to determine whether
it is or is not a PFIC on an annual basis. If the Company is characterized as a PFIC, United States holders of Ordinary Shares may suffer
adverse tax consequences, including the treatment of gains realized on the sale of Ordinary Shares as ordinary income, rather than as
capital gain, the loss of the preferential income tax rate applicable to dividends received on Ordinary Shares by individuals who are
United States holders, and the addition of interest charges to the tax on such gains and certain distributions. A United States shareholder
of a PFIC generally may mitigate these adverse U.S. federal income tax consequences by making a Qualified Electing Fund (“QEF”)
election or, to a lesser extent, a mark-to-market election. The Company does not intend to provide the information necessary for a United
States shareholder to make a QEF election if the Company is classified as a PFIC for any year.

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Your percentage of ownership in the Company may be diluted in the future.

In the future, your percentage
ownership in the Company may be diluted because of equity awards that we will be granting to our directors, officers and employees or
otherwise as a result of equity issuances for acquisitions or capital market transactions. Such awards will have a dilutive effect on
our earnings per share which could adversely affect the market price of or Ordinary Shares. From time to time, we will issue additional
stock-based awards to our employees under our employee benefits plans.

In addition, our amended
and restated memorandum and articles of association authorizes it to issue, without the approval of its shareholders, preference shares
of par value US$0.01 in the capital of the Company, which have enhanced rights relative to Ordinary Shares, including with respect to
dividends, liquidation preferences and voting. Accordingly, Preference Shares could affect the value of our Ordinary Shares. See “We have a dual class share structure that allows our directors to issue preference shares that could be dilutive to your interests as an ordinary shareholder.”

We do not expect to