Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 101

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 101
---
 therefore may subject them to additional regulatory
oversight by the CFTC.

Presently, bitcoin derivatives are not excluded
from the definition of a “commodity future” by the CFTC. We cannot be certain as to how future regulatory developments will
impact the treatment of bitcoins under the law. Bitcoins have been deemed to fall within the definition of a commodity and, we may be
required to register and comply with additional regulation under the CEA, including additional periodic report and disclosure standards
and requirements. Moreover, we may be required to register as a commodity pool operator or as a commodity pool with the CFTC through the
National Futures Association. Such additional registrations may result in extraordinary, non-recurring expenses, thereby materially and
adversely impacting an investment in us. If we determine not to comply with such additional regulatory and registration requirements,
we may seek to curtail our U.S. operations. Any such action would be expected to materially adversely affect our operations. As of the
date of this report, no CFTC orders or rulings are applicable to our business.

<div align='center'>55</div>

Because there has been limited precedent set for financial accounting of bitcoin and other digital assets, the determination that we have made for how to account for bitcoin and other digital assets transactions may be subject to change.

While there has been limited precedent set for
the financial accounting of digital assets and related revenue recognition, on December 13, 2023, the Financial Accounting Standards Board
(FASB) issued ASU 2023-08, which addresses the accounting and disclosure requirements for certain crypto assets. Under this new guidance,
entities are required to subsequently measure certain crypto assets at fair value, with changes in fair value recorded in net income in
each reporting period. Besides ASU 2023-08 issued, there has been little official guidance provided by the FASB, the Public Company Accounting
Oversight Board (PCAOB) or the SEC, it is unclear how companies may in the future be required to account for bitcoin and other digital
assets transactions and related revenue recognition. A change in regulatory or financial accounting standards could result in the necessity
to change our accounting methods and restate our financial statements. Such a restatement could adversely affect the accounting for our
newly mined bitcoin rewards and more generally negatively impact our business, prospects, financial condition and results of operation.
Such circumstances would have a material adverse effect on our ability to continue as a going concern or to pursue our business