Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 102

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 102
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 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 strategy
at all, which would have a material adverse effect on our business, prospects or operations as well as and potentially the value of any
digital assets we hold or expects to acquire for our own account and harm investors.

Risks Related to Previously Operating in China

We may be subject to fines and penalties for operating in China without registration.

Prior to the commencement of the Company’s
bitcoin mining business, and before the involvement of any of the Company’s current directors, officers or employees, Golden Bull
Limited formerly operated a peer-to-peer lending business in the PRC, as discussed below. Additionally, from February 2020 to June 2021,
the Company operated its bitcoin mining business in the PRC, but completed the migration of all of its bitcoin mining operations out of
China by September 2021. Although the statute of limitations for non-compliance by our former business in the PRC is generally two years
and the Company has been out of the PRC, for more than two years, the Authority may still find that our prior bitcoin mining operations
involved a threat to financial security. In such event, the two-year period would be extended to five years.

Pursuant to laws and regulations of the PRC, there
are two ways for foreign legal persons/entities to be considered to be engaging in operation activities within the territory of China.
One way is to establish a foreign-invested