Company: BTBT
Filing Date: 2025-06-18
Form Type: S-3/A
Source: 0001213900-25-055565
Chunk: 17

Company: Bit Digital, Inc
Filing Date: 2025-06-18
Form: S-3/A
Chunk 17
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 Report”) under the heading “Item 1A. Risk Factors,” and as described or may be described in any subsequent quarterly report on Form 10-Q under the heading “Item 1A. Risk Factors,” as well as in any applicable prospectus supplement and contained or to be contained in our filings with the SEC and incorporated by reference in this prospectus, together with all of the other information contained in this prospectus, or any applicable prospectus supplement. For more information, see the section entitled “Where You Can Find More Information; Incorporation by Reference” on page iv of this prospectus.

Please note in considering the “Risk Factors”
in Item 1A of our Annual Report, or in any Form 10-Q, or in any of our filings with the SEC that are incorporated by reference in this
prospectus that: notwithstanding the fact that Bit Digital, Inc. has not conducted operations in the PRC since September 30, 2021, we
have previously disclosed under Risk Factors in our Annual Report that “We may be subject to fines and penalties for any noncompliance
with or any liabilities in our former business in China in a certain period from now on.” Although the statute of limitations for
non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years,
the Authority may still find that our prior bitcoin mining operations involved a threat to financial security. In such event, the two-year
period would be extended to five years.

Potential of Bit Digital Being Classified as a Passive Foreign Investment Company

Generally, if for any taxable year 75% or more
of the Company’s gross income is passive income, or at least 50% of the average quarterly value of the Company’s assets are
held for the production of, or produce, passive income, the Company would be characterized as a passive foreign investment company (“PFIC”)
for U.S. federal income tax purposes. While the Company’s Management has obtained a third party analysis for 2024 and does not
believe that the Company should be classified as a PFIC for 2024, PFIC status is determined annually, and whether the Company will be
a PFIC for the current taxable year or any future taxable year is uncertain. Moreover, the Company is not committing to determine whether
it is or is not a PFIC on an annual basis. If the Company is characterized as a PFIC, United States holders of Ordinary