Bluesky Digital Assets Announces Corporate Updates and Provides Corrective Disclosure

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TORONTO, Oct. 31, 2025 (GLOBE NEWSWIRE) — Bluesky Digital Assets Corp., (CSE: BTC), (OTCQB: BTCWF), (“Bluesky” or the “Corporation”) announced today that, further to its press releases dated July 8, 2025 and July 15, 2025, the Corporation wishes to provide the following corrective disclosure:

Corrective Disclosure

On July 8, 2025, the Corporation disclosed its intention to complete a non-brokered private placement offering of up to 8,333,333 units (each, a “Unit“) at a price of C$0.12 per Unit for aggregate gross proceeds of up to C$1,000,000 (the “Offering”). Each Unit was to consist of one common share in the capital of the Corporation (each, a “Common Share“) and one Common Share purchase warrant (each, a “Warrant“). Each Warrant was to entitle its holder to acquire one additional Common Share (each, a “Warrant Share”) at an exercise price of C$0.15 per Warrant Share for a period of 24 months from the date of issuance.

In addition, in connection with the Offering, the Corporation was to pay eligible finders a finder’s fee comprised of 8% of the gross proceeds of the Offering in cash, and such number of non-transferable finder’s warrants which equals 8% of the number of Units equal to the gross Units issued (each, a “Finder’s Warrant“). Each Finder’s Warrant was to entitle its holder to acquire one Common Share (each, a “Finder’s Warrant Share“) at a price of $0.15 per Finder’s Warrant Share for a period of two years from the date of issuance. Other than being non-transferable, each Finder’s Warrant was to be on the same terms as the Warrants.

The Units, Common Shares, Warrants, Warrant Shares, Finder’s Warrants, and Finder’s Warrant Shares are collectively referred to herein as the “Securities”.

Initial Tranche

On July 8, 2025, the Corporation announced that it had closed the initial tranche of the Offering (the “Initial Tranche”), effective July 8, 2025, through the issuance of 1,750,000 Units for gross proceeds of approximately C$210,000; however, the Corporation actually closed the Initial Tranche effective July 14, 2025. In addition, the Corporation incorrectly disclosed that it had issued eligible finders an aggregate amount of 18,000 Finder’s Warrants in connection with closing the Initial Tranche; however, the Corporation actually issued eligible finders an aggregate amount of 100,000 Finder’s Warrants.

All Securities issued in connection with closing of the Initial Tranche were subject to a statutory hold period of four months and one day from the date of issuance.

The Corporation intends to use the net proceeds from the Initial Tranche to further advance its AI development and online gaming endeavors and for general working capital purposes.

Second Tranche

On July 15, 2025, the Corporation announced that it had closed the second tranche of the Offering (the “Second Tranche”), effective July 14, 2025, through the issuance of an additional 1,200,000 Units for gross proceeds of approximately C$100,000; however, the Corporation actually issued an additional 833,333 Units. Therefore, combined with the Initial Tranche, as of July 14, 2025, the Corporation had issued an aggregate of 2,583,333 Unit for aggregate gross proceeds of approximately C$310,000. No finder’s fees were paid in connection with the Second Tranche.

All Securities issued in connection with closing of the Second Tranche were subject to a statutory hold period of four months and one day from the date of issuance.

The Corporation intends to use the net proceeds from the Second Tranche to further advance its AI development and online gaming endeavors and for general working capital purposes.

Third and Final Tranche

In addition, the Corporation wishes to announce that, effective August 15, 2025, the Corporation closed its third and final tranche of the Offering (the “Final Tranche”) through the issuance of an additional 2,199,999 Units for gross proceeds of approximately $264,000. No finder’s fees were paid in connection with the Final Tranche.

All Securities issued in connection with closing of the Final Tranche were subject to a statutory hold period of four months and one day from the date of issuance.

In connection with the Offering, (i) the Corporation raised aggregate gross proceeds of approximately C$574,000 through the issuance of a combined 4,783,333 Units and (ii) paid eligible finders C$12,000 in cash and issued an aggregate 100,000 Finder’s Warrants. The Corporation intends to use the net proceeds from the Offering to further advance its AI development and online gaming endeavors and for general working capital purposes.

The securities issued under the Offering will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act“), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

June 30, 2025 Financial Statements & Management’s Discussion and Analysis

The Company wishes to announce that it has refiled its financial statements and management’s discussion and analysis (“MD&A”) for the three and six months ending June 30, 2025 to correct errors identified subsequent to their original filing. These corrections do not impact the Company’s overall financial position or cash flows materially.

About Bluesky Digital Assets Corp.

Bluesky Digital Assets Corp, has created a high value digital enterprise at the intersection of Artificial Intelligence, Blockchain and Web3 business solutions. Leveraging its success as an early adopter providing proprietary technology solutions, Bluesky has invested in its Roadmap. Bluesky’s platform, BlueskyINTEL, is well positioned to leverage the current exponential growth of Artificial Intelligence (“AI”) and Blockchain based technologies through a tightly focus built collaborative platform. This innovative web platform offering supports and better enables businesses to adopt and utilize these emerging and developing technologies.

For more information please visit Bluesky at: www.blueskydigitalassets.com or www.blueskyintel.com

Please also follow us on Linkedin at: www.linkedin.com/company/bluesky-digital-assets/

For further information please contact:

Mr. Ben Gelfand        
CEO & Director        
Bluesky Digital Assets Corp.        
T: (416) 363-3833        
E: ben.gelfand@blueskydigitalassets.com        

Forward-Looking Statements

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward- looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Corporation’s control that may cause actual results or performance to differ materially from those currently anticipated in such statements. Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward- looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE nor its Regulation Services Provider as that term is defined in the policies of the CSE accepts responsibility for the adequacy or accuracy of this release. We seek safe harbor.