Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 526

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 526
---
), 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.

Under the Investment
Company Act of 1940, as amended, a company may fall within the definition of an investment company under Section 3(c)(1)(A) thereof if
it is or holds itself out as being engaged primarily, or proposes to engage primarily in the business of investing, reinvesting or trading
in securities, or under Section 3(a)(1)(C) thereof if it is engaged or proposes to engage in business of investing, reinvesting, owning,
holding, or trading in securities, and owns or proposes to acquire “investment securities” (as defined) having a value exceeding
40% of its total assets (exclusive of government securities and cash items) on an unconsolidated basis. There is no authoritative law,
rule or binding guidance published by the SEC regarding the status of digital assets as “securities” or “investment
securities” under the Investment Company Act. Although we believe that we are not engaged in the business of investing, reinvesting,
or trading in investment securities, and we do not hold ourselves out as being primarily engaged, or proposing to engage primarily, in
the business of investing, reinvesting or trading in securities, to the extent the digital assets which we mine, own, or otherwise acquire
may be deemed “securities” or “investment securities” by the SEC or a court of competent jurisdiction, we may
meet the definition of an investment company. If we fall within the definition