Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 243

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 243
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 shall apply to various types of enterprises inside China.” “The industries
of the eliminated category under the ‘Guidance Catalogue for the Industrial Structure Adjustment’ shall apply to the foreign
investment enterprises.” and “Investments are prohibited from being contributed to projects under the eliminated category.”
Additionally, the NDRC released on December 30, 2021 its No. 49 Decree, announcing that the Decision of the National Development and Reform
Commission on Amending the Guiding Catalog for Industrial Restructuring (2019 Version) (the “Amended Catalog”). The Amended
Catalog added “virtual currency mining activities” to the eliminated category of “1. outdated production processing
and equipment under the original Catalog.” Therefore, foreign investment enterprises are prohibited from virtual currency activities
and our bitcoin mining business are banned in China as well. There can be no assurance that our prior mining activities in China will
not be subject to fines and penalties on a retroactive basis.

We may be subject
measures from the Cyberspace Administration of China concerning the collection of data and required to obtain clearance from the CAC.

The Cybersecurity Review
Measures (2021) (the “Measures”) were officially released to the public on December 28, 2021 and became effective on February
15, 2022. According to the Measures, to go public abroad, an online platform operator that possesses the personal information of more
than 1 million users must seek cybersecurity review from the Office of Cybersecurity Review.

Currently, we have not
been involved in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities, and we
have not received any inquiry, notice, warning, or sanction in such respect.

We believe we currently
are not required to obtain clearance from the CAC regarding our listing in the United States under the recently-enacted or proposed regulations
or rules because we have never set an online platform for any user and we have not acted as an online platform operator. However, since
these cybersecurity rules were recently enacted and uncertainties exist as to the interpretation or implementation of the Measures, if
the Measures require us to obtain clearance or permissions from the CAC, we would file an application with CAC and seek to obtain the
clearance or permissions from the CAC as required, however there can be no assurance we will obtain clearance or permission which could
adversely affect our business. Compliance with the Measures, as well as additional laws, regulations and guidelines that the Chinese government