Company: BTBT
Filing Date: 2025-07-14
Form Type: 424B5
Source: 0001213900-25-063777
Chunk: 55

Company: Bit Digital, Inc
Filing Date: 2025-07-14
Form: 424B5
Chunk 55
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Taxation of Dividends and Other Distributions on our Ordinary Shares

Subject to the passive
foreign investment company rules discussed below, the gross amount of distributions made by us to you with respect to the Ordinary Shares
(including the amount of any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date
actually or constructively received by you, but only to the extent that the distribution is paid out of our current or accumulated earnings
and profits (as determined under U.S. federal income tax principles). With respect to corporate U.S. Holders, the dividends will not
be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from other U.S. corporations.

With
respect to non-corporate U.S. Holders, including individual U.S. Holders, dividends are currently taxed at the lower capital gains rate
applicable to qualified dividend income, provided that (1) the Ordinary Shares are readily tradable on an established securities market
in the United States, or we are eligible for the benefits of an approved qualifying income tax treaty with the United States that includes
an exchange of information program, (2) we are not a passive foreign investment company (as discussed below) for either our taxable year
in which the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. Because there is no
income tax treaty between the United States and the Cayman Islands, clause (1) above can be satisfied only if the Ordinary Shares are
readily tradable on an established securities market in the United States. Under U.S. IRS authority, Ordinary Shares are considered for
purpose of clause (1) above to be readily tradable on an established securities market in the United States if they are listed on Nasdaq.
You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our Ordinary
Shares, in light of your own particular circumstances.

To
the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal
income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the
amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings
and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a