Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 129

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 129
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, our internal control over financial reporting.

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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 approval, including punitive damages. If the Company’s Second Amended Complaint
is ultimately accepted by the Court, the total amount of damages sought will be in excess of $5 million.

Item 1A. Risk Factors

The Company is not required to provide the information
called for in this item due to its status as a Smaller Reporting Company. You should refer to the other information set forth in this
report, including the information set forth in “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” as well as in our consolidated financial statements and the related notes. Our business prospects, financial condition
or results of operations could be adversely affected by any of these risks.

Please note in considering the “Risk Factors”
in Item 1A of our Annual Report on Form 10-K