Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 391

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 391
---
 on Form 6-K on January 19, 2021. On April
21, 2021, the Court consolidated several related cases under the caption In re Bit Digital Securities Litigation. Joseph Franklin Monkam
Nitcheu was appointed as lead plaintiff. We filed a motion to dismiss the lawsuits 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
recorded the liabilities of $2,100,000 in the account of “accrued litigation settlement costs”. 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.

21. DISPOSITION OF BIT DIGITAL INVESTMENT MANAGEMENT LIMITED AND BIT DIGITAL INNOVATION MASTER FUND SPC LIMITED

On July 1, 2024, the Company entered into a share
purchase agreement (the “Disposition SPA”) with Pleasanton Ventures Limited (“Pleasanton Ventures”), an unrelated
Hong Kong entity (the “Purchaser”). Pursuant to the Disposition SPA, the Purchaser purchased Bit Digital Investment Management
Limited and Bit Digital Innovation Master Fund SPC Limited in exchange for a consideration of $176,000 and $100, respectively. The disposition
was closed on the same date.

On the same date, the parties completed all of
the share transfer registration procedures as required by the laws of the British Virgin Islands and all other closing conditions had
been satisfied. As a result, the disposition contemplated by the Disposition SPA was completed. Upon completion of the disposition, the
Purchaser became the sole shareholder of Bit Digital Investment Management Limited and Bit Digital Innovation Master Fund SPC Limited.
Upon the closing of the transactions, the Company does not bear any contractual commitment or obligation to the business of Bit Digital
Investment Management Limited and Bit Digital Innovation Master Fund SPC Limited, nor to the Purchaser.

F-43

Bit Digital Investment Management Limited was
incorporated on April 17, 2023 and engaged in fund and investment management activities. Bit Digital Investment Management Limited had
total assets