Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1132

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1132
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 from the City of Niagara
Falls, which ordered the cease and desist from any cryptocurrency mining or related operations at the facility until such time as Blockfusion
complies with Section 1303.2.8 of the City of Niagara Falls Zoning Ordinance (the “Ordinance”), in addition to all other City
ordinances and codes. Blockfusion has advised us that the Ordinance came into effect on October 1, 2022, following the expiration of a
related moratorium on September 30, 2022. Blockfusion has further advised that it has submitted applications for new permits based on
the Ordinance’s new standards and that the permits may take several months to process. Pursuant to the Mining Services Agreement
between Bit Digital and Blockfusion dated August 25, 2021, Blockfusion represents, warrants and covenants that it “possesses, and
will maintain, all licenses, registrations, authorizations and approvals required by any governmental agency, regulatory authority or
other party necessary for it to operate its business and engage in the business relating to its provision of the Services.” On October
5, 2022, Bit Digital further advised Blockfusion that it expects it to comply with the directives of the Notice. Our service agreement
with Blockfusion ended in September 2023. On June 3, 2024, the Company filed suit in Delaware Superior Court against Blockfusion alleging
claims for breach of contract, conversion, and related claims in connection with, among other things, certain deposits and advances paid
to Blockfusion, the return of which is owed to the Company. The Company is seeking in excess of $4.3 million. On October 22, 2024, Blockfusion
denied the Company’s claims and brought reciprocal breach of contract and related counterclaims. Blockfusion is seeking at least
$158,000 in damages. A bench trial has been scheduled for June 29, 2026. Refer to Note 19. Contingencies for further details.

Miner Fleet Update and Overview 

As of December 31, 2023, we had 46,548 miners
owned or operating (in Iceland) for bitcoin mining with a total maximum hash rate of 3.9 EH/s.

On January 25, 2024, we entered into a purchase
agreement with an unaffiliated seller of bitcoin mining computers, from whom we acquired 2,350 S19 Pro miners. As of the date of this