Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 525

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 525
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 mining machines, could in turn put
our facilities at a competitive disadvantage. Any future climate change regulations could also negatively impact our ability to compete
with companies situated in areas not subject to such limitations. Given the political significance and uncertainty around the impact of
climate change and how it should be addressed, we cannot predict how legislation and regulation will affect our financial condition, operating
performance and ability to compete. Furthermore, even without such regulation, increased awareness and any adverse publicity in the global
marketplace about potential impacts on climate change by us or other companies in our industry could harm our reputation. Any of the foregoing
could have a material adverse effect on our financial position, results of operations and cash flows.

57

A particular digital
asset’s status as a “security” in any relevant jurisdiction is subject to a high degree of uncertainty and if a regulator
disagrees with our characterization of a digital asset, we may be subject to regulatory scrutiny, investigations, fines, and other penalties,
which may adversely affect 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, SEC v. Howey
Co., 328 U.S. 293 (1946