Company: BTBT
Filing Date: 2025-10-01
Form Type: 424B5
Source: 0001213900-25-094778
Chunk: 151

Company: Bit Digital, Inc
Filing Date: 2025-10-01
Form: 424B5
Chunk 151
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loss from sources within the United States for U.S. foreign tax credit purposes.

Passive Foreign Investment Company

A non-U.S. corporation is considered a PFIC for
any taxable year if either:

| ● | at least 75% of its gross                                                                                                              
 income for such taxable year is passive income; or                                                                                     |
| ● | at least 50% of the value                                                                                                              
 of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce 
 or are held for the production of passive income (the “asset test”).                                                                   |

Passive
income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of
a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets
and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by
value) of the stock.

No assurance can be
given as to whether we currently are not or will not become a PFIC, as this is a factual determination made annually that will depend,
in part, upon the composition of our income and assets. Furthermore, the composition of our income and assets may also be affected by
how, and how quickly, we use our liquid assets and the cash raised in this offering. Under circumstances where our revenue from activities
that produce passive income significantly increases relative to our revenue from activities that produce non-passive income, or where
we determine not to deploy significant amounts of cash for active purposes, our risk of becoming classified as a PFIC may substantially
increase. In addition, because there are uncertainties in the application of the relevant rules, it is possible that the Internal Revenue
Service may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangible
assets, each of which may result in us becoming a PFIC for the current or subsequent taxable years. 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, PFIC status
is determined annually, and whether the Company will be a PFIC for the current taxable year or any future taxable year is uncertain.
Moreover, the Company is not committing to determine whether it is not a PFIC on an annual basis. If we were classified as a