Company: BTBT
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001213900-25-093122
Chunk: 100

Company: Bit Digital, Inc
Filing Date: 2025-09-29
Form: 424B5
Chunk 100
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 tax purposes and the conversion may not be treated as a recapitalization for U.S. federal income tax purposes notwithstanding our position. If recapitalization treatment applies, then a U.S. Holder will recognize gain, but not loss (except with respect to cash received in lieu of a fractional share), in an amount equal to the lesser of (i) the excess of the sum of the cash (other than any cash in lieu of a fractional share) and the fair market value of the ordinary shares received over the U.S. Holder’s adjusted tax basis in the notes converted and (ii) the amount of cash received (other than cash received in lieu of a fractional share), subject to the discussion under “—Constructive Distributions” below regarding the possibility that an adjustment to the conversion rate of a note converted in connection with a make-whole fundamental change or during a redemption period or for which the interest make-whole provision applies may be treated as a taxable stock dividend. Any gain recognized on conversion generally will be capital gain and will be long-term capital gain if, at the time of the conversion, the note has been held for more than one year.

The tax basis of ordinary shares (including fractional shares, if any) received by a U.S. Holder upon a conversion that is treated as a recapitalization generally will equal the adjusted tax basis of the notes that were converted, reduced by the amount of any cash received (other than cash received in lieu of a fractional share), and increased by the amount of gain, if any, recognized (other than with respect to the receipt of cash in lieu of a fractional share) on the conversion. A U.S. Holder’s tax basis in a fractional share of our ordinary shares will be determined by allocating such holder’s tax basis in the shares of our ordinary shares, as determined in accordance with the previous sentence, between the shares of our ordinary shares actually received and the fractional share deemed received upon conversion, in accordance with their respective fair market values. A U.S. Holder’s holding period for shares of ordinary shares received in the conversion will include the period during which the U.S. Holder held the notes.

<div align='center'>S-58</div>

If the conversion of a note into cash and ordinary shares were not treated as a recapitalization, under an alternative characterization, the cash payment received may be treated as proceeds from the sale of a portion of the note taxable in the manner described under “—Sale, Exchange, Redemption, Repurchase or other Taxable Disposition of the