Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 244

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 244
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promulgates in the future, may entail significant expenses and could materially affect our business.

United States regulators
may be limited in their ability to conduct investigations or inspections of our operations in Hong Kong.

The increased regulatory
scrutiny of U.S.-listed companies with operations in China could add uncertainties to our business operations, share price and reputation.
Although the audit reports of Audit Alliance LLP incorporated by reference into this report are prepared by our auditors in Singapore
who are subject to inspection by the Public Company Accounting Overnight Board (the “PCAOB”), there is no guarantee that future
audit reports will be prepared by auditors that are completely inspected by the PCAOB and, as such, future investors may be deprived of
the benefit of such complete inspections, which could result in limitations or restrictions on our ability to access the U.S. capital
markets. Furthermore, trading in our securities may be prohibited under the Holding Foreign Companies Accountable Act (the “HFCA
Act”) or the Accelerating Holding Foreign Companies Accountable Act if the SEC subsequently determines our audit work is performed
by auditors that the PCAOB is unable to inspect or investigate completely, and as a result, U.S. national securities exchanges, such as
Nasdaq or the over-the-counter market, may determine to delist our securities.

U.S. public companies
that have or had a substantial portion of their operations in China have been the subject of heightened scrutiny, criticism and negative
publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative
publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting,
inadequate corporate government policies or a lack of adherence thereto and, in many cases, allegations of fraud.

62

As part of increased
regulatory focus in the United States on access to audit information, the United States enacted the Holding Foreign Companies Accountable
Act, or the HFCA Act, in December 2020. The HFCA Act includes requirements for the SEC to identify issuers whose audit reports are prepared
by auditors that the PCAOB is unable to inspect or investigate completely because of a restriction imposed by a non-U.S. authority in
the auditor’s local jurisdiction. The HFCA Act also requires public companies on this SEC list to certify that they are not owned
or controlled by a foreign government and make certain additional disclosures in their SEC filings. In addition, under the HFCA Act,