Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 126

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 126
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 securities laws of the United States or any state in the United States. Foreign countries may have
no arrangement for the reciprocal enforcement of judgments with the United States. As a result, recognition and enforcement in a foreign
country of judgments of a court in the United States and any of the other jurisdictions in relation to any matter not subject to a binding
arbitration provision may be difficult or impossible. Even if you sue successfully in a U.S. court or any other jurisdictions, you may
not be able to collect on such judgment against us or our directors and officers. In addition, the SEC, the U.S. Department of Justice
and other U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or officers outside
the United States.

Potential of Our Being Classified as a Passive Foreign Investment Company

Generally, if for any
taxable year 75% or more of the Company’s gross income is passive income, or at least 50% of the average quarterly value of the
Company’s assets are held for the production of, or produce, passive income, the Company would be characterized as a passive foreign
investment company (“PFIC”) for U.S. federal income tax purposes. 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 any future taxable year is uncertain. Moreover, the Company is not committing to determine whether
it is or is not a PFIC on an annual basis. If the Company is characterized as a PFIC, United States holders of Ordinary Shares may suffer
adverse tax consequences, including the treatment of gains realized on the sale of Ordinary Shares as ordinary income, rather than as
capital gain, the loss of the preferential income tax rate applicable to dividends received on Ordinary Shares by individuals who are
United States holders, and the addition of interest charges to the tax on such gains and certain distributions. A United States shareholder
of a PFIC generally may mitigate these adverse U.S. federal income tax consequences by making a Qualified Electing Fund (“QEF”)
election or, to a lesser extent, a mark-to-market election. The Company does not intend to provide the information necessary for a United
States shareholder to make a QEF election if the Company is classified as a PFIC for any year.

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