Company: BTBT
Filing Date: 2025-06-11
Form Type: S-3/A
Source: 0001213900-25-053489
Chunk: 27

Company: Bit Digital, Inc
Filing Date: 2025-06-11
Form: S-3/A
Chunk 27
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 Internal Revenue
Service may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangible
assets, each of which may result in us becoming a PFIC for the current or subsequent taxable years. 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 not a PFIC on an annual basis. If we were classified as a PFIC for
any year during which a U.S. Holder held our Ordinary Shares, we generally would continue to be treated as a PFIC for all succeeding
years during which such U.S. Holder held our Ordinary Shares even if we cease to be a PFIC in subsequent years, unless certain elections
(described below) are made.

<div align='center'>8</div>

If
we are a PFIC for your taxable year(s) during which you hold Ordinary Shares, you will be subject to special tax rules with respect to
any “excess distribution” that you receive and any gain you realize from a sale or other disposition (including a pledge)
of the Ordinary Shares, unless you make a “mark-to-market” election as discussed below. Distributions you receive in a taxable
year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years
or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

| ● | the excess distribution                                                                                                                 
 or gain will be allocated ratably over your holding period for the Ordinary Shares;                                                     |
| ● | the amount allocated                                                                                                                    
 to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we       
 were a PFIC, will be treated as ordinary income, and                                                                                    |
| ● | the amount allocated                                                                                                                    
 to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year, and an interest charge generally 
 applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.                                 |

The tax liability for amounts
allocated to years prior to the year of disposition or “excess distribution” cannot be offset