Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 70

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 70
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 subject to a 4.99%
conversion limitation; 4) rank senior to ordinary shares in insolvency; and 5) solely for voting purposes vote 50 ordinary shares, for
each preference share.

On
December 20, 2024, the Board of Directors declared an 8% ($800,000) dividend on the preference shares to Geney Development Ltd. (“Geney”).
Erke Huang, our Chief Financial Officer, is the President of Geney and the beneficial owner of 30% of the equity of Geney, with the remaining
70% held by Zhaohui Deng, the Company’s Chairman of the Board. The Company fully paid the declared dividend in January 2025.

Treasury
stock

The
Company treats ordinary shares withheld for tax purposes on behalf of employees in connection with the vesting of restricted share grants
as ordinary share repurchases because they reduce the number of ordinary shares that would have been issued upon vesting. For the nine
months ended September 30, 2025 and 2024, the Company withheld nil ordinary shares that were surrendered to the Company for withholding
taxes related to restricted stock vesting valued at $nil, based on fair value of the withheld shares on the vesting date.

As
of September 30, 2025 and December 31, 2024, the Company had treasury stock of $1,171,679 and $1,171,679, respectively. 

34

Warrants

As
of September 30, 2025 and December 31, 2024, the Company had outstanding 10,118,046 private placement warrants to purchase an aggregate
of 10,118,046 ordinary shares at an exercise price of $7.91 per whole share. These warrants expired on July 25, 2025 and were not extended.

In
accordance with ASC 815, the Company determined that the warrants meet the conditions necessary to be classified as equity because the
consideration is indexed to the Company’s own equity, there are no exercise contingencies based on an observable market not based
on its stock or operations, settlement is consistent with a fixed-for-fixed equity instrument, the agreement contains an explicit number
of ordinary shares and there are no cash payment provisions.

The
fair value of the warrants was estimated at $33.3 million using the Black-Scholes model. Inherent in these valuations are assumptions
related to expected stock-price volatility, expected life