Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1425

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1425
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June 29, 2026. The litigation is at an early stage and a reasonably possible range of loss or recovery cannot be estimated.

20. SETTLEMENT OF CLASS ACTION LAWSUIT

On January 20, 2021, a securities class action
lawsuit was filed against the Company and its former Chief Executive Officer and current Chief Financial Officer titled Anthony Pauwels
v. Bit Digital, Inc., Min Hu and Erke Huang (Case No. 1:21-cv-00515) (U.S.D.C. S.D.N.Y.). The class action was on behalf of persons that
purchased or acquired our ordinary shares between December 21, 2020 and January 11, 2021, a period of volatility in our Ordinary Shares,
as well as volatility in the price of bitcoin. We believe the complaints are based solely upon a research article issued on January 11,
2021, which included false claims and to which the Company responded in a press release filed 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