Company: BTBT
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001213900-25-093122
Chunk: 146

Company: Bit Digital, Inc
Filing Date: 2025-09-29
Form: 424B5
Chunk 146
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 Ordinary Shares

Subject
to the passive foreign investment company rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other
taxable disposition of a share equal to the difference between the amount realized for the ordinary share on the sale, exchange or disposition
and your tax basis in such ordinary share, in each case as determined in U.S. dollars. The character of the gain or loss will be capital
gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the Ordinary Shares for more
than one year, you may be eligible for reduced tax rates on any such capital gains. The deductibility of capital losses is subject to
limitations. Gain or loss recognized by a U.S. Holder from the sale or other disposition of Ordinary Shares will generally be gain or
loss from sources within the United States for U.S. foreign tax credit purposes.

Passive Foreign Investment Company

A non-U.S. corporation is considered a PFIC for
any taxable year if either:

| ● | at least 75% of its gross                                                                                                              
 income for such taxable year is passive income; or                                                                                     |
| ● | at least 50% of the value                                                                                                              
 of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce 
 or are held for the production of passive income (the “asset test”).                                                                   |

Passive
income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of
a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets
and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by
value) of the stock.

No assurance can be
given as to whether we currently are not or will not become a PFIC, as this is a factual determination made annually that will depend,
in part, upon the composition of our income and assets. Furthermore, the composition of our income and assets may also be affected by
how, and how quickly, we use our liquid assets and the cash raised in this offering. Under circumstances where our revenue from activities
that produce passive income significantly increases relative to our revenue from activities that produce non-passive income, or where
we determine not to deploy significant amounts of cash for active