Company: BTBT
Filing Date: 2025-08-05
Form Type: DEF 14A
Source: 0001213900-25-071508
Chunk: 11

Company: Bit Digital, Inc
Filing Date: 2025-08-05
Form: DEF 14A
Chunk 11
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 (8%) percent annual dividends
if and when decided by the Board. On February 7, 2023, December 8, 2023, and December 20, 2024, the Board declared eight (8%) percent
($800,000) dividends on the Preference Shares to Geney Development Ltd. (“Geney”) for the periods ended December 31, 2022,
2023 and 2024. Erke Huang, our Chief Financial Officer, is the President of Geney and the beneficial owner of thirty (30%) percent of
the equity of Geney, with the remaining seventy (70%) percent held by Zhaohui Deng, the Company’s Chairman of the Board.

Purpose of the Proposal; Principal Effects

We intend to raise substantial
additional equity financing in the near term to pursue our growth strategies, particularly our strategy of purchasing Ethereum. Our management
believes that our current authorized share capital is not sufficient for our needs and that we require an increase in our authorized share
capital. Although our Board has not approved any specific plans at this time to issue additional Ordinary Shares or Preference Shares,
we intend to do so at such times and in such amounts and at such prices as our Board determines are in the best interests of the Company
and its shareholders. Further, the additional authorized share capital will be available for issuance by our Board for other proper corporate
purposes, including but not limited to, share dividends, acquisitions, financings and equity compensation plans.

The issuance of additional
Ordinary Shares or Preference Shares in the future will have the effect of diluting earnings per share, voting power and Ordinary and
Preference shareholdings of our shareholders. It could also have the effect of making it more difficult for a third party to acquire control
of our company. Our management believes the increase in authorized share capital is in the best interests of our Company and our shareholders
and recommends that the shareholders approve the increase in authorized share capital.

Interests of Directors and Executive Officers

Our directors and executive
officers have no substantial interests, directly or indirectly, in the Proposal except to the extent of their ownership of Ordinary Shares
and equity awards granted to them under our equity incentive plan.

Vote Required and Board Recommendation

The affirmative vote of the holders of a majority of the Ordinary Shares
and Preference Shares combined, either present in person or represented by proxy and entitled to vote at the General Meeting is required
for approval of this Proposal.

IF YOU ARE A BIT DIGITAL INC. SHAREHOLDER