Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 58

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 58
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 31, 2024, 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.

During
the quarter ended June 30, 2025, the Company purchased servers and network equipment totaling $4,898,326 and almost immediately thereafter,
we entered into two sales-type lease agreements effective May 2025 and June 2025, respectively, 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.

During
the quarter ended September 30, 2025, the Company purchased servers and network equipment totaling $3,041,389 and almost immediately
thereafter, we entered into one sales-type lease agreement effective July 2025 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.

Disposal
of Property, Plant and Equipment

For
the nine months ended September 30, 2025, the Company sold 7,900 bitcoin miners for a total consideration of $1,325,877. On the dates
of the transaction, the total original cost and accumulated depreciation of these miners were $9,437,817 and $7,577,165, respectively.
The Company recognized a loss of $534,775 from the sale of miners which was recorded in the account of “loss from disposal of property,
plant and equipment”. As of the date of this report, the Company has collected cash consideration of $935,079.

For
the nine months ended September 30, 2025, the Company sold 64 InfiniBand (IB) Switches for a total consideration of $ 1.0 million. On
the date of the transaction, the carrying amount of these switches was $1.4 million. The Company recognized a loss of $338,222 from the
sale which was recorded within Net loss from disposal of property