Company: BTBT
Filing Date: 2025-10-01
Form Type: 424B5
Source: 0001213900-25-094778
Chunk: 31

Company: Bit Digital, Inc
Filing Date: 2025-10-01
Form: 424B5
Chunk 31
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 community with respect to WhiteFiber or its industry 
 in general; and                                                                                        |

| ● | the level of short interest WhiteFiber’s ordinary shares. |

In addition, the stock markets
have recently and in the past experienced extreme volatility that has often been unrelated to the operating performance of issuers. These
broad market fluctuations may negatively impact the price or liquidity of WhiteFiber’s ordinary shares. When the price of a share
has been volatile, holders of that share have sometimes instituted securities class action litigation against the issuer.

Prior to the consummation
of the WhiteFiber IPO, the Company held all of the issued and outstanding ordinary shares of WhiteFiber. After giving effect to the WhiteFiber
IPO (including the underwriters’ exercise of their option to purchase additional ordinary shares), the Company holds approximately
71.5% of the issued and outstanding ordinary shares of WhiteFiber. Any fluctuations in the trading price of WhiteFiber’s ordinary
shares may also impact the trading price of the Company’s ordinary shares.

We may be or become a passive foreign investment company, which could result in adverse U.S. federal income tax consequences to U.S. investors.

In general, a non-U.S. corporation is a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes for any taxable year in which (i) 50% or more of the average value of its assets (generally determined on the basis of a weighted quarterly average) during such year consists of assets that produce, or are held for the production of, passive income, or (ii) 75% or more of its gross income for such year consists of passive income. Passive income generally includes dividends, interest, royalties, rents, annuities, investment gains, net gains from the sales of property that does not give rise to any income and net gains from the sale of commodities (subject to certain exceptions, such as an exception for certain income derived in the active conduct of a trade or business). The value of goodwill generally will be treated as an active or passive asset based on the nature of the income produced in the activity to which the goodwill is attributable. For purposes of the PFIC rules, a non-U.S. corporation that owns, directly indirectly or constructively, at least 25% by value of the stock of another corporation is treated as if it held its proportionate share of the assets of the other corporation, and received directly its proportionate share of the income of the other corporation.