Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 531

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 531
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 state regulatory obligations applicable to MSBs and MTs. If we are deemed to be
subject to and determine not to comply with such additional regulatory and registration requirements, we may act to leave a particular
state or the United States completely. Any such action would be expected to materially adversely affect our operations.

Current regulation
of the exchange of bitcoins under the CEA by the CFTC is unclear; to the extent we become subject to regulation under the CFTC in connection
with our exchange of bitcoin, we may incur additional compliance costs, which may be significant.

Current legislation,
including the Commodities Exchange Act of 1936, as amended (the “CEA”) is unclear with respect to the exchange of bitcoins.
Changes in the CEA or the regulations promulgated thereunder, as well as interpretations thereof and official promulgations by the Commodity
Futures Trading Commission (“CFTC”), which oversees the CEA, may impact the classification of bitcoins and therefore may subject
them to additional regulatory oversight by the CFTC.

Presently, bitcoin derivatives
are not excluded from the definition of a “commodity future” by the CFTC. We cannot be certain as to how future regulatory
developments will impact the treatment of bitcoins under the law. Bitcoins have been deemed to fall within the definition of a commodity
and, we may be required to register and comply with additional regulation under the CEA, including additional periodic report and disclosure
standards and requirements. Moreover, we may be required to register as a commodity pool operator or as a commodity pool with the CFTC
through the National Futures Association. Such additional registrations may result in extraordinary, non-recurring expenses, thereby materially
and adversely impacting an investment in us. If we determine not to comply with such additional regulatory and registration requirements,
we may seek to curtail our U.S. operations. Any such action would be expected to materially adversely affect our operations. As of the
date of this report, no CFTC orders or rulings are applicable to our business.

60

Because there has
been limited precedent set for financial accounting of bitcoin and other digital assets, the determination that we have made for how to
account for bitcoin and other digital assets transactions may be subject to change.

While there has been
limited precedent set for the financial accounting of digital assets and related revenue recognition, on December 13, 2023, the Financial
Accounting Standards Board (FASB) issued ASU 2023-08