Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 103

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 103
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 suspension
of business for rectification.

We may be subject to fines and penalties for our prior mining activities in mainland China.

The Chinese government implements the management
systems of pre-establishment national treatment and negative list for foreign investment. Pre-establishment national treatment refers
to the treatment given to foreign investors and their investments during the investment access stage, which is not lower than that given
to their domestic counterparts; negative list for foreign investment refers to special administrative measures for the restricted or prohibited
access of foreign investment in specific fields as stipulated by the Chinese government.

Pursuant to the Special Administrative Measures
for Access of Foreign Investment Access (2021 Edition), or the 2021 Edition Negative List for Foreign, issued by The Ministry of Commerce
of the PRC (the “MOFCOM”) and the National Development and Reform Commission (the “NDRC”) on December 27, 2021,
which came into effect on January 1, 2022, our bitcoin mining business does not fall into the Negative List for Foreign. However, the
2021 Edition Negative List for Foreign indicates that “Fields not mentioned in the Negative List for Foreign Investment Access shall
be subject to administration under the principle of consistency for domestic and foreign investments. The relevant provisions of the Negative
List for Market Access shall apply to domestic and foreign investors on a unified basis.”

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Also, based on the Negative List for Market Access
(2022 Edition), “the Catalogue for Guidance on Industrial Restructuring shall be included in the Negative List for Market Access”;
plus, according to the Decision of the State Council on Promulgating and Implementing the “Temporary Provisions on Promoting Industrial
Structure Adjustment,” valid from December. 2, 2005, “In principle, the ‘Guidance Catalogue for the Industrial Structure
Adjustment’ shall apply to various types of enterprises inside China.” “The industries of the eliminated category under
the ‘Guidance Catalogue for the Industrial Structure Adjustment’ shall apply to the foreign investment enterprises.”
and “Investments are prohibited from being contributed to projects under the eliminated category.” Additionally, the NDRC
released on December 30, 2021 its No. 49 Decree, announcing that the Decision of the National Development and Reform Commission on Amending
the Guiding Catalog for Industrial Restructuring (2019 Version) (the “Amended Catalog”). The Amended Catalog added “virtual
currency mining activities” to the eliminated