Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 553

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 553
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trade or business) and gains from the disposition of passive assets.

If
we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. shareholder
who holds our ordinary shares, the U.S. shareholder may be subject to increased U.S. federal income tax liability and may be subject to
additional reporting requirements.

While we are not classified as a PFIC for 2023 or 2024, we may be classified
as a PFIC in any future taxable year, because, among other things, the treatment of digital assets such as bitcoin for purposes of the
PFIC rules is unclear. Given this uncertainty, prospective U.S. shareholders contemplating an investment in the ordinary shares should
assume that we are a PFIC and are urged to consult their own tax advisors regarding our PFIC status and the resulting U.S. federal income
tax consequences in light of their own particular. 

As of January 1,
2025, we were no longer a foreign private issuer and we are required to comply with the provisions of the Exchange Act, and the rules
of Nasdaq, applicable to U.S. domestic issuers, which will continue to require us to incur significant expenses and expend time and resources.

As of January 1, 2025,
we were no longer a foreign private issuer, and we are required to comply with all of the provisions applicable to a U.S. domestic issuer
under the Exchange Act, including filing an annual report on Form 10-K, quarterly periodic reports and current reports for certain events,
complying with the sections of the Exchange Act regulating the solicitation of proxies, requiring insiders to file public reports of their
share ownership and trading activities and insiders being liable for profit from trades made in a short period of time. We are also no
longer exempt from the requirements of Regulation FD promulgated under the Exchange Act related to selective disclosures. We are also
no longer permitted to follow our home country’s rules in lieu of the corporate governance obligations imposed by Nasdaq, and are
required to comply with the governance practices required by U.S. domestic issuers listed on Nasdaq. We are also required to comply with
all other rules of Nasdaq applicable to U.S. domestic issuers, including that our articles of association specify a quorum of no less
than one-third of our outstanding ordinary shares for meetings of our common shareholders, the solicitation of proxies and the approval
by our shareholders