Bit Digital, Inc. Approves \$800,000 Interim Dividend to Preference Shareholder Geney Development Limited

Key Developments from Bit Digital’s Latest SEC Filing

Bit Digital, Inc. (Nasdaq: BTBT), a digital asset mining company headquartered in New York, has made a significant move that could draw investor attention. According to its latest Form 8-K filing dated February 19, 2026, the company’s Board of Directors has approved the payment of an interim dividend totaling \$800,000 to Geney Development Limited, the sole holder of its preference shares.

Key Points for Investors

• Dividend Declaration: The Board approved a cash interim dividend of \$0.80 per preference share for a total of 1,000,000 preference shares held by Geney Development Limited, amounting to an aggregate payout of \$800,000.
• Source of Funds: The dividend will be paid out of Bit Digital’s retained earnings available for distribution, in accordance with the company’s Amended and Restated Articles of Association.
• Insider Connections: Erke Huang, Bit Digital’s Chief Financial Officer and director, is President of Geney and the beneficial owner of 30% of Geney’s equity. The remaining 70% is owned by Zhaohui Deng, an independent director and former Chairman of Bit Digital’s Board.
• Potential Price Sensitivity: The transaction involves related parties, as key insiders of Bit Digital are direct beneficiaries of the dividend payment. Such related-party transactions may attract close scrutiny from investors and regulators.
• Retained Earnings: The dividend is not being funded from new capital raises or external debt, but from the company’s accumulated profits, indicating some level of operating profitability or cash retention.

What This Means for Shareholders

• Shareholder Value: While the dividend is paid only to the holder of preference shares (Geney Development Limited), this move signals Bit Digital’s willingness and ability to return value to shareholders, at least to those holding preference securities.
• Related-Party Transaction: Investors should note the close ties between Bit Digital management and Geney Development Limited. The presence of related-party transactions can sometimes raise governance or conflict of interest concerns.
• Potential Impact on Ordinary Shares: Ordinary shareholders are not directly receiving this dividend. However, the payout could affect available retained earnings and, depending on the company’s capital structure and financial policy, may influence future dividends or reinvestment potential for ordinary shareholders.
• Regulatory and Market Response: Related-party dividends are often scrutinized for fairness, transparency, and governance. Any perception of preferential treatment or inadequate disclosure could impact market sentiment and, consequently, share price.

Company Background

Bit Digital, Inc. is listed on the Nasdaq Capital Market under the ticker BTBT. The company operates in the crypto asset sector and was formerly known as Golden Bull Ltd. before changing its name in 2017.

Additional Details

• Filing Date: February 25, 2026
• Date of Dividend Approval: February 19, 2026
• Registered Address: 31 Hudson Yards, Floor 11, New York, NY 10001
• Contact Number: 212-463-5121
• Trading Symbol: BTBT
• Listed Exchange: Nasdaq Capital Market

Conclusion

The announcement of an \$800,000 interim dividend to a preference shareholder closely tied to Bit Digital’s management is a material event that investors should consider carefully. While it demonstrates the company’s capacity to distribute earnings, the insider nature of the transaction may prompt questions regarding governance and future capital allocation policies. Shareholders and potential investors should monitor further disclosures and assess the implications for Bit Digital’s financial health and corporate governance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The information presented above is based on the company’s Form 8-K as filed with the U.S. Securities and Exchange Commission and may be subject to further updates or clarifications.

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