Company: BTBT
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001213900-25-093122
Chunk: 101

Company: Bit Digital, Inc
Filing Date: 2025-09-29
Form: 424B5
Chunk 101
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 Notes” above, and the ordinary shares received on such a conversion may be treated as received upon a conversion of the other portion of the note, which generally would not be taxable to a U.S. Holder (as described above), in each case, subject to the discussion under “—Constructive Distributions” below regarding the possibility that an adjustment to the conversion rate of a note converted in connection with a make-whole fundamental change or during a redemption period or for which the interest make-whole provision applies may be treated as a taxable stock dividend. In that case, the U.S. Holder’s tax basis in the note generally would be allocated pro rata between the portion of the note that is treated as converted into ordinary shares and the portion of the note that is treated as sold for cash, based on the relative fair market values of the ordinary shares and cash received. The holding period for the ordinary shares received in the conversion would include the holding period for the note.

With respect to cash received in lieu of a fractional share, a U.S. Holder will generally be treated as if such fractional share were issued and received and then immediately redeemed for cash. Accordingly, the receipt of cash in lieu of a fractional share will generally result in the recognition of capital gain or loss measured by the difference between the cash received for the fractional share and the portion of the U.S. Holder’s tax basis allocable to the fractional share. Any such gain or loss recognized will generally be treated in the same manner as described above under “—Sale, Exchange, Redemption, Repurchase or other Taxable Disposition of the Notes.”

As described in “Description of the Notes—Conversion Rights,” our delivery of cash, ordinary shares or a combination of cash and ordinary shares will be deemed to satisfy our obligation with respect to accrued and unpaid interest on the notes. We intend to take the position that, upon a conversion of notes, accrued and unpaid interest is paid first by any cash paid upon such conversion and then by any ordinary shares.

U.S. Holders should consult their tax advisors regarding the tax treatment of the receipt of cash and ordinary shares for notes upon conversion.

Exchange in Lieu of Conversion

If a U.S. Holder surrenders notes for conversion, we direct the notes to be offered to a financial institution for exchange in lieu of conversion, and the designated institution accepts the notes and delivers ordinary shares (and cash in lieu of a fractional share, if applicable), cash or a combination of cash and ordinary shares in exchange for the notes, the U.S.