Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 216

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 216
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 Control over Financial
Reporting

In October 2024, we acquired 100% of the equity
interests of Enovum Data Centers Corp (“Enovum”). We are currently in the process of integrating Enovum’s operations,
control processes, and information systems into our systems and control environment and expect to include them in scope of design and
operation of our internal control over financial reporting for the year ending December 31, 2025. We believe that we have taken the necessary
steps to monitor and maintain appropriate internal control over financial reporting during this integration. Other than changes made in
connection with the acquisitions, there were no changes in our internal control over financial reporting during the three months ended
June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

73

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Except as set forth herein, there have been no
changes since the filing of the Company’s Form 10-K for the year ended December 31, 2024 and the Company’s Form 10-Q for the
period ended March 31, 2025.

On June 3, 2024, the Company filed suit in Delaware
Superior Court against Blockfusion, Inc. (“Blockfusion”) alleging claims for breach of contract, conversion, and related claims
in connection with, among other things, certain deposits and advances paid to Blockfusion, the return of which is owed to Bit Digital.
Bit Digital is seeking in excess of $4.3 million. On October 22, 2024, Blockfusion denied the Company’s claims and brought reciprocal
breach of contract and related counterclaims. Following limited discovery, the Court entered a stipulation and order on June 18, 2025,
amending the Case Management Order to extend multiple discovery deadlines and vacate the previously scheduled trial date. On August 1,
2025, the Company moved for leave to file a Second Amended Complaint, which adds claims for fraud and related causes of action arising
out of Blockfusion’s conduct both at the inception of and during the parties’ relationship. The Second Amended Complaint also
names Blockfusion’s CEO, Alexander Martini-Lomanto, as an additional defendant. The Company continues to seek the recovery of its
original investment, invoice payments, and unpaid late development fees, and now seeks additional damages for the tort and equitable claims
contained in the Second Amended Complaint pending Court