Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 382

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 382
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 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. Blockfusion has filed a motion to dismiss the Second Amended Complaint and a hearing
on the motion has been scheduled for January 6, 2026.

Item
1A. Risk Factors

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 condensed 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.

Except
as described below, our risk factors as of the date of this report have not changed materially from those described in “Part I,
Item 1A. Risk Factors” of our Form 10-K for the year ended December 31, 2024 (the “Annual Report”).  

Unless
the context indicates otherwise, references under the headings “Risks Related to WhiteFiber’s Cloud Services and Data Center
Operations,” “Risks Related to the Geopolitical Uncertainty” and “Risks