Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 85

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 85
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 In addition to standard service, Duke Energy has installed and maintains “Extra Facilities” (including overhead lines,
substations, transformers, breakers, and metering equipment). The cost of these Extra Facilities totals approximately $1,137,975, for
which the Company pays a monthly facilities charge of $11,405.

The
ESA represents a continuing commitment to purchase power at or above the established minimum levels throughout the contract term. As
such, the Company is obligated to pay the minimum monthly charges regardless of operational activity.

Under
the termination clause, either party may cancel the ESA with at least 60 days’ written notice. In the event of early termination,
the Company remains liable for all amounts due under the ESA through the termination date and may incur additional charges associated
with the Extra Facilities if service is discontinued prior to the expiration of the facilities term.

As
of September 30, 2025 management has no present intention to reduce operations at Madison or terminate the ESA. Accordingly, no liability
has been recognized in the financial statements in connection with the ESA.

20.
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 Bit Digital Investment Management Limited and Bit Digital Innovation Master Fund SPC Limited in exchange for a consideration
of $176,000 and $100, respectively. The disposition was closed on the same date.

On
the same date, the parties completed all of the share transfer registration procedures as required by the laws of the British Virgin
Islands and all other closing conditions had been satisfied. As a result, the disposition contemplated by the Disposition SPA was completed.
Upon completion of the disposition, the Purchaser became the sole shareholder of Bit Digital Investment Management Limited and Bit Digital
Innovation Master Fund SPC Limited. Upon the closing of the transactions, the Company does not bear any contractual commitment or obligation
to the business of Bit Digital Investment Management Limited and Bit Digital Innovation Master Fund SPC Limited, nor to the Purchaser.

Bit
Digital Investment Management Limited was incorporated on April 17, 2023 and engaged in fund and investment management activities. Bit
Digital Investment Management Limited had total assets of $1