Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 96

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 96
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 our business, operating results and financial condition. Furthermore, a determination that bitcoin or any other digital asset that we own or mine is a “security” may adversely affect the value of bitcoin and our business.

The SEC and its staff have taken the position
that certain digital assets fall within the definition of a “security” under the U.S. federal securities laws. The legal test
for determining whether any given digital asset is a security, as described below, is a highly complex, fact-driven analysis that has
evolved over time. Our determination that the digital assets we hold are not securities is a risk-based assessment and not a legal standard
or one binding on regulators. As of the date of this report, with the exception of certain centrally issued digital assets that have received
“no-action” letters from the SEC staff, bitcoin and ETH are the only digital assets which senior officials at the SEC have
publicly stated are unlikely to be considered securities. As a digital asset mining company, we do not believe we are an issuer of any
“securities” as defined under the federal securities laws. Our internal process for determining whether the digital assets
we hold or plan to hold is based upon the public statements of the SEC and existing case law. The digital assets we hold or plan to hold,
other than bitcoin and ETH, may have been created by an issuer as an investment contract under the Howey test, ., 328 U.S. 293 (1946), and may be deemed to be securities by the SEC. However, the Company was not the issuer that created these
digital assets and is holding them on an interim basis until liquidated. Should the SEC state in the future that U.S. digital currency
tokens or other digital assets we hold are securities, we may subject to additional securities laws’ requirements and may no
longer be able to hold any of these digital assets. It will then likely become difficult or impossible for such digital assets to be traded,
cleared or custodied in the United States through the same channels used by non-security digital assets, which in addition to materially
and adversely affecting the trading value of the digital assets is likely to cause substantial volatility and significantly impact their
liquidity and market participants’ ability to convert the digital assets into U.S. dollars. Our inability to exchange bitcoin for
fiat currency or other digital assets (and vice versa) and to administer our treasury management objectives may decrease our earnings
potential and have an adverse impact on our business and financial condition.

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