Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 533

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 533
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 approval and registration procedures with the relevant regulatory authorities in accordance with the provisions of Administrative
Measures for the Registration of Enterprises of Foreign Countries (Regions) Engaging in Production and Operation Activities within the
Territory of China (Revised in 2020), or Order No.31. However, in view of the ban on all new digital asset operations in China, we terminated
the process of forming a subsidiary in mainland China. Since our Hong Kong subsidiary had not obtained business licenses in mainland China
where Bit Digital Hong Kong used to carry out business, it may lead to a punishment of a warning, fine, confiscation of income and/or
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.”

61

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