Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 69

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 69
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 fulfill their responsibilities as a
full-time officer of WhiteFiber, supervising a full staff and are expected to provide certain services, representing not more than
approximately 30% of their working time, in respect of the Company’s operations. The services to be provided will include
financial reporting, tax, legal, human resources, information technology, insurance and other general and administrative functions.
All services are to be provided at cost, except if otherwise agreed to. WhiteFiber estimates that the average fees payable by
WhiteFiber to the Company will be approximately $155,000 per month, exclusive of shared based compensation expense. 

38

19. COMMITMENTS AND CONTINGENCIES 

Legal Proceedings

The Company from time to time may become involved
in legal proceedings in the ordinary course of our business. The Company may also pursue litigation to assert its legal rights and assets,
and such litigation may be costly and divert the efforts and attention of its management and technical personnel which could adversely
affect its business. Due to the uncertainty of litigation and depending on the amount and the timing, an unfavorable resolution of some
or all of such matters may materially affect our business, results of operations, financial position, or cash flows.

Although we cannot predict the outcome of legal
or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, U.S. GAAP requires
us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made.
We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to
make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our
discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be
estimated.

Bit Digital USA, Inc. v. Blockfusion USA,
Inc., C.A. No. N24C-05-306 PRW (CCLD)

On June 3, 2024, the Company filed suit in the
Superior Court of the State of Delaware, Complex Commercial Litigation Division, against Blockfusion USA, Inc. (“Blockfusion”)
alleging claims for breach of contract and related causes of action arising out of a terminated mining services relationship. The Company
initially sought in excess of $4.3 million, including: (i) the return of