Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 293

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 293
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 this report, the Company
has collected the cash consideration of $0.8 million.

89

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”.

For the year ended December 31, 2023, the Company
wrote off 5,238 BTC miners and 730 ETH miner during the year, and the Company recorded a loss of $0.2 million resulting from the write-off
in the account of “net (loss) gain from disposal of property and equipment”.

Income tax expenses

The following table provides details of income
taxes:

    For the Years Ended December 31, 

    2024  
    2023 

    Income (loss) before income taxes 
    $32,283,977  
    $(13,614,237)
  
    Provision for income taxes 
     3,978,167  
     279,044 
  
    Effective tax rate 
     12.3% 
     (2.0)%

Tax expense was higher as a percentage of income
before taxes during the year ended December 31, 2024 compared to the year ended December 31, 2023 primarily due to the impact of tax expense
increases by $1.9 million and $1.9 million in year ended December 31, 2024 due to profitable business operations in Iceland and Canada,
respectively.

Our future effective income tax rate depends on
various factors, such as tax legislation, the geographic composition of our pre-tax income, the amount of our pre-tax income as business
activities fluctuate, non-deductible expenses, non-taxable capital gain in certain jurisdictions, change of valuation allowance and the
effectiveness of our tax planning strategies. We also continue to monitor the adoption of Pillar Two relating to the global minimum tax
in each of our tax jurisdictions to evaluate its impact on our effective income tax rate. For the year ended December 31, 2024, we are
not subject to Pillar Two global minimum tax. For more details on the Company’s tax profile, see Note 15. Income Taxes to our consolidated
financial statements.

Net income (loss) and earnings (loss) per share

For the year ended December 31,