Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 97

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 97
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 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-security for purposes of determining which digital assets to mine, hold and
trade, or that the SEC, or a court, if the question was presented to it, would agree with our assessment. We could be subject to judicial
or administrative sanctions for failing to offer or sell digital assets in compliance with the registration requirements, or for acting
as a broker or dealer without appropriate registration. Such an action could result in injunctions, cease and desist orders, as well as
civil monetary penalties, fines, and disgorgement, criminal liability, and reputational harm. Further, if bitcoin is deemed to be a security
under the laws of any U.S. federal, state, or local jurisdiction, or in a proceeding in a court of law or otherwise, it may have adverse
consequences for such digital asset. For instance, all transactions in such supported digital asset would have to be registered with the
SEC, or conducted in accordance with an exemption from registration, which could severely limit its liquidity, usability and transactability.
For instance, all transactions in such supported digital asset would have to be registered with