Company: BTBT
Filing Date: 2025-06-11
Form Type: S-3/A
Source: 0001213900-25-053489
Chunk: 18

Company: Bit Digital, Inc
Filing Date: 2025-06-11
Form: S-3/A
Chunk 18
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 in our former business in China in a certain period from now on.” Although the statute of
limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for
more than two years, the Authority may still find that our prior bitcoin mining operations involved a threat to financial security. In
such event, the two-year period would be extended to five years.

Potential of Bit Digital Being Classified as a Passive Foreign Investment Company

Generally, if for any taxable year 75% or
more of the Company’s gross income is passive income, or at least 50% of the average quarterly value of the Company’s assets
are held for the production of, or produce, passive income, the Company would be characterized as a passive foreign investment company
(“PFIC”) for U.S. federal income tax purposes. While the Company’s Management has obtained a third party analysis
for 2024 and does not believe that the Company should be classified as a PFIC for 2024, PFIC status is determined annually, and whether
the Company will be a PFIC for the current taxable year or any future taxable year is uncertain. Moreover, the Company is not committing
to determine whether it is or is not a PFIC on an annual basis. If the Company is characterized as a PFIC, United States holders of Ordinary
Shares may suffer adverse tax consequences, including the treatment of gains realized on the sale of Ordinary Shares as ordinary income,
rather than as capital gain, the loss of the preferential income tax rate applicable to dividends received on Ordinary Shares by individuals
who are United States holders, and the addition of interest charges to the tax on such gains and certain distributions. A United States
shareholder of a PFIC generally may mitigate these adverse U.S. federal income tax consequences by making a Qualified Electing Fund (“QEF”)
election or, to a lesser extent, a mark-to-market election. The Company does not intend to provide the information necessary for United
States shareholders to make a QEF election if the Company is classified as a PFIC for any year.

<div align='center'>4

USE OF PROCEEDS</div>

Unless otherwise indicated in a prospectus supplement,
we intend to use the net proceeds from the sale of securities under this prospectus for general corporate purposes, which may include
capital expenditures, funding potential acquisitions of additional new mining equipment, cloud services equipment, other potential acquisitions,
and general working capital. We