Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 529

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 529
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 House of Representatives, is intended to work with the proposed DCEA. The Securities
Clarity Act would codify that an asset, whether tangible or intangible (including an asset in digital form), that is not per se a security,
does not become a security as a result of being sold or otherwise transferred pursuant to an investment contract. Thus, certain digital
assets which the Company may acquire, if sold pursuant to an investment contract, would not become securities, subject to SEC regulations;

●Digital
Trading Clarity Act of 2022, introduced on September 29, 2022 in the Senate, provides that if a federal court or the SEC determines that
a digital asset is a security, the bill requires the SEC Division of Enforcement to request information from an intermediary listing
that asset to determine if the intermediary meets the requirements in the bill texts. As stated elsewhere herein, the Company will conduct
an extensive compliance review prior to holding any digital asset that may be deemed to be a security, and would need to avoid holding
any such digital asset if this bill becomes law.

Our interactions
with a blockchain and mining pools may expose us to SDN or blocked persons or cause us to violate provisions of law that did not contemplate
distributive ledger technology.

The Office of Financial
Assets Control of the U.S. Department of Treasury (“OFAC”) requires us to comply with its sanction program and not conduct
business with persons named on its specially designated nationals (“SDN”) list. However, because of the pseudonymous nature
of blockchain transactions we may inadvertently and without our knowledge engage in transactions with persons named on OFAC’s SDN
list or from countries on OFAC’s sanctioned countries’ list. We also rely on a third-party mining pool service provider for
our mining revenue payments and other participants in the mining pool, that, unknown to us, may also be persons from countries on OFAC’s
SDN list or from countries on OFAC’s sanctioned countries list. Our Company’s policy prohibits any transactions with such
SDN individuals or persons from sanctioned countries, but we may not be adequately capable of determining the ultimate identity of the
individual with whom we transact with respect to selling bitcoin assets. Moreover, federal law prohibits any U.S. person from knowingly
or unknowingly possessing any visual depiction commonly known as child pornography. Recent media reports have suggested that persons have
imbedded such depictions on one or more blockchains. Because our business requires us to download and retain one or more block