Company: BDCIU
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109324
Chunk: 14

Company: BTC Development Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 events. Accordingly, the actual results could differ
significantly from those estimates.

Cash and Cash Equivalents

The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company had $2,886,023, which includes $3,200,000
of proceeds received in advance from the sponsor in connection with the private placement consummated simultaneously with the Initial
Public Offering, net of amounts used to pay offering costs and advance from related party, and $0 in cash as of September 30, 2025 (unaudited)
and December 31, 2024, respectively, and no cash equivalents as of September 30, 2025 and December 30, 2024, respectively.

Cash Held in Trust Account

As of September 30, 2025 (unaudited) and December
30, 2024, the assets held in the Trust Account, amounting to $2,000,000 and $0, respectively, were held in cash. The balance consists
of proceeds received in advance from the sponsors in connection with the private placement consummated simultaneously with the Initial
Public Offering.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows.

Deferred Offering Costs

The Company complies with the requirements of
ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, — “Expenses of Offering”. Offering costs consist principally
of professional and registration fees that are related to the Initial Public Offering. Financial Accounting Standards Board (“FASB”)
ASC 470-20, “Debt with Conversion and Other Options”, addresses the allocation of proceeds from the issuance of convertible
debt into its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Units
between Class A ordinary shares and warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned
value of the warrants and then to the Class A ordinary shares. Offering costs allocated to the Public Shares were charged to temporary
equity, and offering costs allocated to the Public Warrants (as defined in Note 3)