Company: BTBT
Filing Date: 2025-07-03
Form Type: S-8 POS
Source: 0001213900-25-061371
Chunk: 97

Company: Bit Digital, Inc
Filing Date: 2025-07-03
Form: S-8 POS
Chunk 97
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Under the Investment Company Act of 1940, as amended,
a company may fall within the definition of an investment company under Section 3(c)(1)(A) thereof if it is or holds itself out as being
engaged primarily, or proposes to engage primarily in the business of investing, reinvesting or trading in securities, or under Section
3(a)(1)(C) thereof if it is engaged or proposes to engage in business of investing, reinvesting, owning, holding, or trading in securities,
and owns or proposes to acquire “investment securities” (as defined) having a value exceeding 40% of its total assets (exclusive
of government securities and cash items) on an unconsolidated basis. There is no authoritative law, rule or binding guidance published
by the SEC regarding the status of digital assets as “securities” or “investment securities” under the Investment
Company Act. Although we believe that we are not engaged in the business of investing, reinvesting, or trading in investment securities,
and we do not hold ourselves out as being primarily engaged, or proposing to engage primarily, in the business of investing, reinvesting
or trading in securities, to the extent the digital assets which we mine, own, or otherwise acquire may be deemed “securities”
or “investment securities” by the SEC or a court of competent jurisdiction, we may meet the definition of an investment company.
If we fall within the definition of an investment company under the Investment Company Act, we would be required to register with the
SEC. If an investment company fails to register, it likely would have to stop doing almost all business, and its contracts would become
voidable. Generally non-U.S. issuers may not register as an investment company without an SEC order.

The classification of a digital asset as a security
under the applicable law has wide-ranging implications for the regulatory obligations that flow from the mining, sale and trading of such
assets. For example, a digital asset that is a security in the United States may generally only be offered or sold in the United States
pursuant to a registration statement filed with the SEC or in an offering that qualifies for an exemption from registration. Persons that
effect transactions in digital assets that are deemed securities in the United States may be subject to registration with the SEC as a
“broker” or “dealer.”

There can be no assurances that we will properly
characterize any given digital asset as a security or non