Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 70

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 70
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 a $3.75 million investment made under the parties’ Mining
Services Agreement; (ii) approximately $576,000 in payments made in reliance on invoices the Company later determined to be fraudulent;
and (iii) unpaid late development fees accruing at $9,375 per week. On October 22, 2024, Blockfusion denied the Company’s claims
and filed counterclaims forreciprocal breach of contract and related relief. Bit Digital denied Blockfusion’s claims.

Following limited discovery, the Court entered
a stipulation and order on June 18, 2025, amending the Case Management Order to extend multiple discovery deadlines and vacate the previously
scheduled trial date. On August 1, 2025, the Company moved for leave to file a Second Amended Complaint, which adds claims for fraud and
related causes of action arising out of Blockfusion’s conduct both at the inception of and during the parties’ relationship.
The Second Amended Complaint also names Blockfusion’s CEO, Alexander Martini-Lomanto, as an additional defendant. The Company continues
to seek the recovery of its original investment, invoice payments, and unpaid late development fees, and now seeks additional damages
for the tort and equitable claims contained in the Second Amended Complaint pending Court approval, including punitive damages. If the
Company’s Second Amended Complaint is ultimately accepted by the Court, the total amount of damages sought will be in excess of
$5 million.

The litigation remains ongoing, and the Company
cannot yet estimate a reasonably possible range of loss or recovery.

Contingent Consideration Liabilities

As part of the Unifi Transaction (See Note 4.
Acquisitions), the Company may be required to make additional contingent payments to the seller based on the timing and availability
of electric service to the property, as follows:

●A contingent payment of $8 million may become payable if, within two years of the acquisition date, the Company uses commercially reasonable efforts and obtains from the local energy provider an Electric Service Agreement for at least 99 megawatts (MW), or if the property otherwise receives 99MW of power within that timeframe.

●If an Electric Service Agreement for at least 99MW is provided, or the property receives 99MW of power within three years, the Company may instead be required to make a contingent payment of $5 million.

●If an Electric Service Agreement is provided, or the property receives more than 99MW of power within four years, the Company may be required to make