Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 99

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 99
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 our business,
financial condition and results of operations. Certain of the material pending bills are as follows:

Our interactions with a blockchain and mining pools may expose us to SDN or blocked persons or cause us to violate provisions of law that did not contemplate distributive ledger technology.

The Office of Financial Assets Control of the
U.S. Department of Treasury (“OFAC”) requires us to comply with its sanction program and not conduct business with persons
named on its specially designated nationals (“SDN”) list. However, because of the pseudonymous nature of blockchain transactions
we may inadvertently and without our knowledge engage in transactions with persons named on OFAC’s SDN list or from countries on
OFAC’s sanctioned countries’ list. We also rely on a third-party mining pool service provider for our mining revenue payments
and other participants in the mining pool, that, unknown to us, may also be persons from countries on OFAC’s SDN list or from countries
on OFAC’s sanctioned countries list. Our Company’s policy prohibits any transactions with such SDN individuals or persons
from sanctioned countries, but we may not be adequately capable of determining the ultimate identity of the individual with whom we transact
with respect to selling bitcoin assets. Moreover, federal law prohibits any U.S. person from knowingly or unknowingly possessing any visual
depiction commonly known as child pornography. Recent media reports have suggested that persons have imbedded such depictions on one or
more blockchains. Because our business requires us to download and retain one or more blockchains to effectuate our ongoing business,
it is possible that such digital ledgers contain prohibited depictions without our knowledge or consent. To the extent government enforcement
authorities enforce these and other laws and regulations that are impacted by decentralized distributed ledger technology, we may be subject
to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties, all of which could harm our
reputation and affect the value of our Ordinary Shares.

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If regulatory changes or interpretations of our activities require our registration as a money services business (“MSB”) under the regulations promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act (“BSA”), or otherwise under state laws, we may incur significant compliance costs, which could be substantial or cost-prohibitive. If we become subject to these regulations, our costs in complying with them may have a material negative effect on our business and the results of our operations.

To the extent