Company: BTBT
Filing Date: 2025-10-31
Form Type: S-3ASR
Source: 0001213900-25-104745
Chunk: 59

Company: Bit Digital, Inc
Filing Date: 2025-10-31
Form: S-3ASR
Chunk 59
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 has often been unrelated to the operating performance of issuers. These broad market fluctuations
may negatively impact the price or liquidity of WhiteFiber’s ordinary shares. When the price of a share has been volatile, holders
of that share have sometimes instituted securities class action litigation against the issuer.

Prior to the consummation of WhiteFiber’s
initial public offering, the Company held all of the issued and outstanding ordinary shares of WhiteFiber. After giving effect to WhiteFiber’s
initial public offering (including the underwriters’ exercise of their option to purchase additional ordinary shares), the Company
holds approximately 71.5% of the issued and outstanding ordinary shares of WhiteFiber. Any fluctuations in the trading price of WhiteFiber’s
ordinary shares may also impact the trading price of the Company’s ordinary shares.

We may be or become a passive foreign investment company, which could result in adverse U.S. federal income tax consequences to U.S. investors.

In general, a non-U.S. corporation is a passive
foreign investment company (“PFIC”) for U.S. federal income tax purposes for any taxable year in which (i) 50% or more of
the average value of its assets (generally determined on the basis of a weighted quarterly average) during such year consists of assets
that produce, or are held for the production of, passive income, or (ii) 75% or more of its gross income for such year consists of passive
income. Passive income generally includes dividends, interest, royalties, rents, annuities, investment gains, net gains from the sales
of property that does not give rise to any income and net gains from the sale of commodities (subject to certain exceptions, such as an
exception for certain income derived in the active conduct of a trade or business). The value of goodwill generally will be treated as
an active or passive asset based on the nature of the income produced in the activity to which the goodwill is attributable. For purposes
of the PFIC rules, a non-U.S. corporation that owns, directly indirectly or constructively, at least 25% by value of the stock of another
corporation is treated as if it held its proportionate share of the assets of the other corporation, and received directly its proportionate
share of the income of the other corporation.

While the Company’s management has obtained
a third-party analysis for 2024 and does not believe that the Company should be classified as a PFIC for 2024,