Company: BTBT
Filing Date: 2025-10-01
Form Type: 424B5
Source: 0001213900-25-094778
Chunk: 150

Company: Bit Digital, Inc
Filing Date: 2025-10-01
Form: 424B5
Chunk 150
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 benefits of an approved qualifying income tax treaty with the United States that includes
an exchange of information program, (2) we are not a passive foreign investment company (as discussed below) for either our taxable year
in which the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. Because there is no
income tax treaty between the United States and the Cayman Islands, clause (1) above can be satisfied only if the Ordinary Shares are
readily tradable on an established securities market in the United States. Under U.S. IRS authority, Ordinary Shares are considered for
purpose of clause (1) above to be readily tradable on an established securities market in the United States if they are listed on Nasdaq.
You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our Ordinary
Shares, in light of your own particular circumstances.

To
the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal
income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the
amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings
and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a
dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described
above.

Taxation of Dispositions of Ordinary Shares

Subject
to the passive foreign investment company rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other
taxable disposition of a share equal to the difference between the amount realized for the ordinary share on the sale, exchange or disposition
and your tax basis in such ordinary share, in each case as determined in U.S. dollars. The character of the gain or loss will be capital
gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the Ordinary Shares for more
than one year, you may be eligible for reduced tax rates on any such capital gains. The deductibility of capital losses is subject to
limitations. Gain or loss recognized by a U.S. Holder from the sale or other disposition of Ordinary Shares will generally be gain or