Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 259

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 259
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ey Development Ltd., an entity beneficially owned by the Company’s Chairman and Chief Financial Officer for the years ended
December 31, 2022, 2023, and 2024. We currently plan to retain any future earnings to cover operating costs and otherwise fund the growth
of our business. We cannot assure you that we would, at any time, generate sufficient surplus cash that would be available for distribution
to the holders of our Ordinary Shares as a dividend. As a result, capital appreciation, if any, of our Ordinary Shares will be the sole
source of gain for the foreseeable future. There is no guarantee that our Ordinary Shares will appreciate in value or even maintain the
price at which a shareholder purchased such shareholder’s shares. 

70

You may face difficulties in protecting
your interests as a shareholder, as Cayman Islands law provides less protection when compared to the laws of the United States and it
may be difficult for a shareholder of ours to effect service of process or to enforce judgements obtained in the U.S. courts.

Our
corporate affairs are governed by our amended and restated memorandum and articles of association and by the Companies Act (Revised) of
the Cayman Islands and common law of the Cayman Islands. The rights of shareholders to take legal action against our directors and us,
actions by minority shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent
governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial
precedent in the Cayman Islands as well as from English common law. Decisions of the Privy Council (which is the final court of appeal
for British overseas territories, such as the Cayman Islands) are binding on a court in the Cayman Islands. Decisions of the English courts,
and particularly the Supreme Court of the United Kingdom and the Court of Appeal are generally of persuasive authority but are not binding
on the courts of the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands
law are not as clearly established as they would be under statutes or judicial precedents in the United States. In particular, the Cayman
Islands has a different body of securities laws as compared to the United States and provide less protection to investors. In addition,
Cayman Islands companies may not have standing to initiate a shareholder derivative action before the U.S.