Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 49

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 49
---
 requires entities to measure crypto assets at fair value with changes recognized
in net income each reporting period. The Company’s digital assets are within the scope of ASU 2023-08 and the transition guidance
requires a cumulative-effect adjustment as of the beginning of the current fiscal year for any difference between the carrying amount
of the Company’s digital assets and fair value. As a result of the Company’s early adoption of ASU 2023-08, the Company recorded
a $21.2 million increase to digital assets and a $21.2 million decrease to accumulated deficit on the consolidated balance sheets as
of the beginning of the quarter ended March 31, 2024.

The
following table presents the Company’s significant digital assets holdings as of September 30, 2025:

     Quantity   Cost Basis   Fair Value   BTC   6.1   $679,409   $693,468   ETH   102,023.6    264,254,817    422,988,896   Total digital assets held as of September 30, 2025       $264,934,226   $423,682,364  

The
cost basis is equal to the post-impairment value of all BTC and ETH held as of the adoption of ASU 2023-08 on January 1, 2024. For BTC
and ETH earned subsequent to the adoption of ASU 2023-08, the cost basis of the BTC and ETH represents the valuation at the time the
Company determined for revenue recognition purposes.

24

The
following table presents a roll-forward of BTC for the nine months ended September 30, 2025, based on the fair value model under ASU
2023-08:

    Fair
    value 
  
    BTC as of December 31, 2024 
    $69,319,731 
  
    Receipt of BTC from mining services 
     21,824,503 
  
    Sales of BTC in exchange of cash 
     (54,950,404)
  
    Sales of BTC in exchange of ETH 
     (34,582,781)
  
    Sales of BTC in exchange of USDC 
     (2,321,750)
  
    Payment of BTC for service charges from mining
    facilities 
     (1,365,252)
  
    Payment of BTC for other expenses 
     (80,106