In the March 2024 edition of Bloomberg Law, Bill Haddad and Kirill Nikonov published “Securities Law at Crossroads: The Evolving Paradigm of the Digital Assets Regulatory Landscape.” The following is an excerpt:
While halving-related disclosures are ubiquitous in the mining companies’ filings, the aforementioned threats warrant adding very specific risk factors explaining the effect of halving on the business of a particular issuer in the Securities Act of 1933 (Securities Act) and Exchange Act filings. Additionally, the mining companies in particular should have a comprehensive discussion of the effects of halving in their MD&A. Item 303(a) of Regulation S-K mandates a discussion of trends and uncertainties that are “known to management” and are “reasonably likely to cause reported financial information not to be necessarily indicative of future operating results or of future financial condition.” The 2024 and the subsequent Bitcoin halvings certainly qualify as such.
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