Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1694

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 5
Chunk 1694
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, 2024.

As a result of the adoption of ASU 2023-08 effective
January 1, 2024, digital assets are recorded at fair value, changes in fair value are recognized as part of net income. As described under
the heading “Realized gain on exchange of digital assets”, gains on digital assets for the year ended December 31,
2024 are not comparable to the year ended December 31, 2023.

Realized gain on exchange of digital assets

For the year ended December 31, 2023, we recorded
a gain of $18.8 million from the exchange of 1,811.2 bitcoins and 5,712.4 ETH.

Prior to the adoption of ASU 2023-08, digital
assets were classified as indefinite-lived intangible assets and were measured at cost less impairment. Subsequent increases in digital
asset prices are not allowed to be recorded unless the digital asset is sold, at which point the gain is recognized in “Realized
gain on exchange of digital assets” in the consolidated statements of operations. Accordingly, realized gains (losses) recognized
on digital asset transactions for the year ended December 31, 2024 are not comparable to the year ended December 31, 2023.

Impairment of digital assets

As a result of the adoption of ASU 2023-08 effective
January 1, 2024, impairment of digital assets was no longer recognized.

Impairment of digital assets was $6.6 million
for the year ended December 31, 2023. We utilized the intraday low price of digital assets in the calculation of impairment of digital
assets. For the year ended December 31, 2023, the impairment of $6.6 million was comprised of impairment of $4.5 million and $2.1 million
on bitcoins and ETH, respectively.

Net (loss) gain from disposal of property and
equipment

For the year ended December 31, 2024, the Company
sold 5,606 bitcoin miners for a total consideration of $ 1.2 million. On the dates of the transaction, the total original cost and accumulated
depreciation of these miners were $7.4 million and $5.3 million, respectively. The Company recognized a loss of $850,120 from the sale
of miners which was recorded in the account of “net (loss) gain from disposal of property. As of