Company: BTBT
Filing Date: 2025-06-09
Form Type: CORRESP
Source: 0001213900-25-052675
Chunk: 1

Company: Bit Digital, Inc
Filing Date: 2025-06-09
Form: CORRESP
Chunk 1
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 the asset in
its principal market and that absent evidence to the contrary, the market on which an entity normally transacts for the relevant asset
is presumed to be the principal market.

The Company primarily transacts in digital assets
through Amber Group’s OTC desk (“Amber”). However, Amber does not publish trade-level data such as pricing, volume,
or trading activity, and its pricing reflects bilateral negotiations rather than observable market transactions. ASC 820 requires the
principal market to be the one with the greatest volume and level of activity, which Amber is unable to substantiate with publicly available
evidence. In evaluating available markets, the Company has determined that Coinbase is its principal market as it provides the most reliable
and greatest volume and level of activity for bitcoin and ETH for which the Company can access at each of the impacted measurement dates.

The Company further notes that volume and activity
data for bitcoin and ETH is reasonably available from Coinbase and meet the definition of Level 1 inputs under ASC 820-10-35-36B, which
states:

“…in all cases, if there is a quoted price in an active market (that is a Level 1 input) for the asset or a liability, a reporting entity should use that quoted price without adjustment when measuring fair value, except as specified in paragraph 820-10-35-41-C.”

The Company acknowledges that CoinMarketCap does
not qualify as a principal market under ASC 820-10-35-5, as it is an aggregator of pricing data across various platforms and does not
constitute an exchange or market in which market participants transact.

Having determined Coinbase as its principal market,
the Company evaluated the impact of using historical pricing data from CoinMarketCap versus Coinbase to value its digital assets
as of December 31, 2024 and 2023, noting differences of $116,675 and $21,912, respectively, which were concluded to be immaterial to the
Company’s financial statements for those years.

The Company will revise its disclosures in future
filings to reflect the use of Coinbase as its principal market for the valuation of bitcoin and ETH. Additionally, management confirms
that as of April 1, 2025, the Company has implemented the use of Coinbase pricing in its determination of the valuation of its bitcoin
and ETH.

Mr. David
Irving
Mr. Mark Brunhofer
June 9, 2025
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