Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1187

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1187
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 ● Engaged in cloud services                   WhiteFiber HPC, Inc. (fka Bit Digital HPC, Inc.) (“WF HPC”)   ● A United States company   100% owned by WhiteFiber AI, Inc      ●  Incorporated on June 27, 2024          ● Engaged in HPC business                   WhiteFiber, Inc. (fka Celer, Inc.) (“WhiteFiber”)   ● A United States company   100% owned by Bit Digital, Inc      ● Incorporated on August 15, 2024          ● Engaged in HPC business                   Enovum Data Centers Corp (“Enovum”)   ● A Canadian company   100% owned by WhiteFiber, Inc.      ● Acquired on October 11, 2024          ● Engaged in HPC data center services     

F-9

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and principles of
consolidation

The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

The consolidated financial statements include
the accounts of the Company and its wholly owned subsidiaries. All material transactions and balances among the Company and its subsidiaries
have been eliminated upon consolidation.

Use of estimates

In preparing the consolidated financial statements
in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant
estimates required to be made by management include, but are not limited to, the valuation of digital assets and other current assets,
useful lives of property, plant, and equipment, impairment of long-lived assets, intangible assets and goodwill, valuation of assets
and liabilities acquired in business combinations, provision necessary for contingent liabilities and realization of deferred tax assets.
Actual results could differ from those estimates.

Fair value of financial instruments

ASC 825-10 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would