Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 258

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 258
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 20, 2021, a securities
class action lawsuit was filed against the Company and its Chief Executive Officer and Chief Financial Officer titled Anthony
Pauwels v. Bit Digital, Inc., Min Hu and Erke Huang (Case No. 1:21-cv-00515) (U.S.D.C. S.D.N.Y.). The class action was brought
on behalf of persons that purchased or acquired our Ordinary Shares between December 21, 2020 and January 11, 2021, a period of volatility
in our Ordinary Shares, as well as volatility in the price of bitcoin. On April 29, 2021, the Court consolidated several related cases
under the caption In re Bit Digital, Inc. Securities Litigation. Joseph Franklin Monkam Nitcheu was appointed as lead plaintiff.
On July 6, 2021, the lead plaintiff filed a consolidated class action complaint (the “Amended Complaint”). The Amended Complaint
was still based primarily upon a January 11, 2021 short seller report and included, among other things, additional information concerning
our previously discontinued peer to peer lending business. We filed a motion to dismiss the lawsuit and vigorously defended the action.
While that motion was pending, the Company agreed with the lead plaintiff selected in the case to settle the class action by paying $2,100,000.
The Company chose to do that to eliminate the burden, expense and uncertainties of further litigation. The Company continues to deny the
allegations in the Amended Complaint and nothing in the settlement is evidence of any liability on the Company’s behalf.

On March 7, 2023, a final
judgment in this matter was entered approving the settlement and certifying the class for purposes of enforcing the settlement and payment
was then made by the Company.

We have not paid
Ordinary Share dividends in the past and do not anticipate paying cash dividends in the foreseeable future.

We have never declared or paid any cash dividends with respect to our
Ordinary Shares and do not intend to pay any cash dividends in the foreseeable future. The Preference Shares held by our Chairman of the
Board and Chief Financial Officer provide for an eight (8%) percent ($800,000) annual dividend when and if declared by the Board. On February
7, 2023, December 8, 2023, and December 20, 2024, the Board of Directors declared eight (8%) percent dividends on the preference shares
to Gen