Company: BTBT
Filing Date: 2025-06-26
Form Type: 424B5
Source: 0001213900-25-058407
Chunk: 18

Company: Bit Digital, Inc
Filing Date: 2025-06-26
Form: 424B5
Chunk 18
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 and assets, the value of our assets and the
price of our ordinary shares, each of which is subject to change. 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 purposes, our risk of becoming classified as a PFIC may substantially
increase. In addition, because there are uncertainties in the application of the relevant rules, it is possible that the 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.

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