Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 38

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 38
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 assets were $15.1 million and $15.0 million, respectively and operating lease liabilities were $14.0 million and $13.8 million,
respectively. For the three months ended March 31, 2025 and 2024, the Company’s amortization on the operating lease right-of-use
assets totaled $1.1 million and $0.4 million, respectively.

Additional information regarding the Company’s
leasing activities as a lessee is as follows:

     For the Three Months Ended March 31,      2025   2024   Operating cash outflows from operating leases  $1,371,364   $600,000   Right of use assets exchanged for operating lease liability   1,298,508    460,955   Remaining lease term – operating lease   9.3    2.8   Discount rate – operating lease   9.2%   9.9% 

The following table represents our future minimum
operating lease payments as of March 31, 2025:

    Year 
    Amount 
  
    2025 
    $4,364,033 
  
    2026 
     5,722,078 
  
    2027 
     2,311,972 
  
    2028 and thereafter 
     6,353,150 
  
    Total undiscounted lease payments 
     18,751,234 
  
    Less present value discount 
     (4,735,919)
  
    Present value of lease liability 
    $14,015,315 

The Company entered into a GPU server lease agreement
effective January 2024 for its cloud services designed to support generative AI workstreams. The lease payment depends on the usage of
the GPU servers and the Company concludes that the lease payments are variable and will be recognized when they are incurred. For the
three months ended March 31, 2025 and 2024, the GPU server lease expense amounted to $3.7 million and $2.1 million, respectively.

Lease as Lessor

During the quarter ended March 31, 2024, the Company
entered into a sales-type lease agreement as a lessor for its data storage equipment. The term of the lease is scheduled to expire in
December 2026.

During the quarter ended September 30, 2024, the
Company entered