Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1302

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1302
---
 ended December 31, 2022, 2023 and 2024. Erke Huang, our Chief Financial Officer,
is the President of Geney and the beneficial owner of thirty (30%) percent of the equity of Geney, with the remaining seventy (70%) percent
held by Zhao Hui Deng, the Company’s Chairman of the Board.

Penny Stock

The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than
$5.00, other than securities registered on certain national securities exchanges, provided that current price and volume information with
respect to transactions in such securities is provided by the exchange or system. While our ordinary shares are currently listed on the
Nasdaq Capital Market and not subject to the penny stock rules, should we not be able to maintain our listing on Nasdaq, the penny stock
rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by
the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and
secondary trading; (b) contains a description of the broker’s or dealer’s duties to the customer and of the rights and remedies
available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief,
clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between
the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms
in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form,
including language, type size and format, as the SEC shall require by rule or regulation.

The broker-dealer also must provide, prior to
effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of
the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable
information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value
of each penny stock held in the customer’s account.