Company: BTBT
Filing Date: 2025-06-18
Form Type: S-3/A
Source: 0001213900-25-055565
Chunk: 28

Company: Bit Digital, Inc
Filing Date: 2025-06-18
Form: S-3/A
Chunk 28
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. Ordinary loss treatment also applies to any loss realized on the actual sale
or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously
included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts.

The mark-to-market election
is available only for “marketable stock”, which is stock that is traded in other than de minimis quantities on at least 15
days during each calendar quarter (“regularly traded”) on a qualified exchange or other market (as defined in applicable
U.S. Treasury regulations), including Nasdaq. If the Ordinary Shares are regularly traded on Nasdaq and if you are a holder of Ordinary
Shares, the mark-to-market election would be available to you if we are or become a PFIC.

A
mark-to-market election will not apply to Ordinary Shares for any taxable year during which we are not a PFIC, but will remain in effect
with respect to any subsequent taxable year in which we become a PFIC. Such election will not apply to any non-U.S. subsidiaries that
we may organize or acquire in the future. Accordingly, a U.S. Holder may continue to be subject to tax under the PFIC excess distribution
regime with respect to any lower-tier PFICs that we organize or acquire in the future notwithstanding the U.S. Holder’s mark-to-market
election for the Ordinary Shares.

Alternatively, a U.S.
Holder of stock in a PFIC may make a “qualified electing fund” election with respect to PFIC to elect out of the tax treatment
discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross
income for a taxable year such holder’s pro rata share of the corporation’s earnings and profits for the taxable year. However,
the qualified electing fund election is available only if such PFIC provides such U.S. Holder with certain information regarding its
earnings and profits as required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the information
that would enable you to make a qualified electing fund election.

If
you do not make a timely “mark-to-market” election (as described above), and if we were a PFIC at any time during the period
you hold our Ordinary Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to