Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 99

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 99
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This reporting requirement took effect on January
1, 2023, and the implementation of these requirements is ongoing. The Company is closely monitoring the situation and waiting for more
issuance of updated guidance from government agencies. The Company deems that it doesn’t qualify as “broker” under section
80603 and therefore it is not required to report its customers to the IRS under such provision. Disclosing the identity of our bitcoin
mining operations and associated accounts to ensure they can be taxed by the IRS could cause a significant devaluing of our business,
the bitcoin currency, and the entire digital assets market. Additionally, noncompliance with this provision could lead to significant
fines and or regulatory actions against our company.

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Risks related to material pending crypto legislation or regulations

On the federal level, by certain accounts, more
than 100 bills were introduced in Congress to regulate cryptocurrency and digital assets. Except as described in other specific risk factors
set forth herein, we do not believe that material pending crypto legislation or regulations would have a material effect on our business,
financial condition and results of operations. Certain of the material pending bills are as follows:

Our interactions with a blockchain and mining pools may expose us to SDN or blocked persons or cause us to violate provisions of law that did not contemplate distributive ledger technology.

The Office of Financial Assets Control of the
U.S. Department of Treasury (“OFAC”) requires us to comply with its sanction program and not conduct business with persons
named on its specially designated nationals (“SDN”) list. However, because of the pseudonymous nature of blockchain transactions
we may inadvertently and without our knowledge engage in transactions with persons named on OFAC’s SDN list or from countries on
OFAC’s sanctioned countries’ list. We also rely on a third-party mining pool service provider for our mining revenue payments
and other participants in the mining pool, that, unknown to us, may also be persons from countries on OFAC’s SDN list or from countries
on OFAC’s sanctioned countries list. Our Company’s policy prohibits any transactions with such SDN individuals or persons
from sanctioned countries, but we may not be adequately capable of determining the ultimate identity of the individual with whom we transact
with respect to selling bitcoin assets. Moreover, federal law prohibits any U.S. person from knowingly or unknowingly possessing any visual
depiction commonly known as child pornography. Recent media reports have suggested that persons have imbedded such