Company: BDCIU
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109324
Chunk: 18

Company: BTC Development Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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9

BTC DEVELOPMENT CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(UNAUDITED) 

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

On April 4, 2023, BTC Development
Sponsor LLC (f/k/a Cohen Circle Sponsor II, LLC) paid $25,000 to cover certain offering costs of the Company and became a holder of 1
Class B ordinary share (the “Founder Shares”). On August 11, 2025, the Company cancelled the one Founder Share and issued
8,686,667 Founder Shares to BTC Development Sponsor LLC. On September 5, 2025, BTC Development Sponsor LLC transferred 4,095,833 Founder
Shares to BTC Development Advisors LLC. The Founder Shares include an aggregate of up to 1,100,000 shares subject to forfeiture to the
extent that the underwriters’ over-allotment option is not exercised in full or in part, so that the number of Founder Shares will
equal 25% of the Company’s issued and outstanding shares after the Initial Public Offering and the private placement. On October
1, 2025, the underwriters exercised their over-allotment option in full as part of the closing of the Initial Public Offering. As such,
the 1,100,000 Founder Shares are no longer subject to forfeiture.

The sponsors have agreed, subject to limited exceptions,
not to transfer, assign or sell any of the Founder Shares until the earlier to occur of (A) one year after the completion of the
Business Combination; and (B) subsequent to the Business Combination (x) if the last reported sale price of the Class A
ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share dividends, rights issuances, reorganizations,
recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days
after the Business Combination or (y) the date on which the Company completes a liquidation, merger, share exchange, reorganization
or other similar transaction that results in all of the Company’s Public Shareholders having the right to exchange their ordinary
shares for cash, securities or other property. Any permitted transferees would be subject to the same restrictions and other agreements
of the initial shareholders with respect to any Founder Shares