Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 264

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 264
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 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 September 30, 2025 that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.

74

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 on
June 18, 2025, the Court entered a stipulation and order 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, including punitive damages.
The total amount of damages sought exceeds $5 million. Block