Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1419

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1419
---
.0% 
     0.0% 
     (0.1)%
  
    Others 
     0.1% 
     (0.2)% 
     0.1%
  
    Effective income tax rate 
     12.3% 
     (2.0)% 
     0.6%

F-39

A reconciliation of gross unrecognized tax benefits
was as follows:

    For the Years Ended December 31, 

    2024  
    2023  
    2022 

    Unrecognized tax benefits at the beginning of the year 
    $3,196,204  
    $3,044,004  
    $2,767,276 
  
    Increases for tax positions taken in prior years 
    $-  
    $152,200  
    $276,728 
  
    Unrecognized tax benefits at the end of the year 
    $3,196,204  
    $3,196,204  
    $3,044,004 

The amounts of unrecognized tax benefits that
would impact the effective tax rate were $3.2 million, $3.2 million and $3.0 million as of December 31, 2024, 2023 and 2022, respectively.
The amounts of interest and penalties recognized during the years ended December 31, 2024, 2023 and 2022 were expenses (benefits) of $nil
million, $0.2 million and $0.3 million, respectively. Our policy is to include interest and penalties related to unrecognized tax benefits
within Other expense (income), net.

In the normal course of business, we are subject
to examination by tax authorities throughout the world. We are subject to U.S. federal income tax examinations for all years beginning
from the calendar year ended December 31, 2020. We are subject to state income tax examinations for all years beginning from the calendar
year ended December 31, 2020. We are also subject to examinations in other major foreign jurisdictions, including Singapore, Hong Kong,
Canada and Iceland, for all years beginning from the calendar year ended December 31, 2021. Currently we are not under audit from tax
authority in any of the jurisdictions, in which we operated.

Although it is reasonably possible that certain
unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes,