Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1402

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1402
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 Leases for more information.

The Company purchased data storage equipment totaling
$1,254,248 and immediately thereafter, we entered into a sales-type lease agreement effective August 2024 for a portion of these assets
valued at $1,184,937 with a third party. As a result, the leased data storage equipment was derecognized from our property and equipment
and recorded as a net investment in lease. Refer to Note 8. Leases for more information.

The Company purchased servers and network equipment
totaling $6,056,700 and almost immediately thereafter, we entered into two sales-type lease agreements effective November 2024 and December
2024 with a third party. As a result, the leased cloud service equipment was derecognized from our property, plant, and equipment and
recorded as a net investment in lease. Refer to Note 8. Leases for more information.

Sales and writing off of miners in the year
of 2024

For the year ended December 31, 2024, the Company
sold 5,606 bitcoin miners for a total consideration of $1,213,956. On the dates of the transaction, the total original cost and accumulated
depreciation of these miners were $7,359,405 and $5,295,328, 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 the date of this report, the Company
has collected the cash consideration of $772,393.

F-29

For the year ended December 31, 2024, the Company
wrote off 19,889 BTC miners during the year, and the Company recorded a loss of $nil resulting from the writing off in the account of
“net (loss) gain from disposal of property and equipment”.

Sales and writing off of miners in the year
of 2023 

For the year ended December 31, 2023, the Company
wrote off 5,328 BTC miners and 730 ETH miner during the year, and the Company recorded a loss of $165,160 resulting from the writing off
in the account of “net (loss) gain from disposal of property and equipment”. For the year ended December 31, 2023, the Company
did not sell any miners.

Sales and writing off of miners in the year
of 2022