Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 60

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 60
---
has not conducted operations in the PRC since September 30, 2021 we have disclosed under Risk Factors in our Annual Report on Form 10-K
for the year ended December 31,2024: “We may be subject to fines and penalties for any noncompliance with or any liabilities in
our former business in China in a certain period from now on.” Although the statute of limitations for non-compliance by our former
business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the authority may still find
its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five
years. The risk factor in the Form 10-K titled “if we are classified as a passive foreign investment company (“PFIC”)
U.S taxpayers who own our ordinary shares nay have adverse United States federal income tax consequences” has been modified to the
extent that Management has obtained a third party analysis for 2024 and does not believe that Bit Digital should be classified as a PFIC
for 2024.

The forward-looking information in this report
reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.
In connection with the forward-looking information contained in this report, the Company has made assumptions about: the current profitability
in mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company’s assets
going forward; the Company’s ability to profitably liquidate its digital currency inventory as required; historical prices of digital
currencies and the ability of the Company to mine digital currencies on the cloud will be consistent with historical prices; and there
will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant
events occur outside of the Company’s normal course of business. Although the Company believes that the assumptions inherent in
the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue
reliance should not be put on such information due to the inherent uncertainty therein.

33

Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations.

The following discussion should be read in conjunction
with our interim Condensed Consolidated Financial Statements and the related notes and other financial information appearing elsewhere
in this report as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our