Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 96

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 96
---
 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.

<div align='center'>52</div>

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