Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 319

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 319
---
 the mining hardware is located, which included observations of the physical controls and mining equipment inventory.

●We independently traced certain financial and performance
data directly to the blockchain network to test the completeness, occurrence and accuracy of mining revenue as the operator.

●We independently confirmed with third-party mining pool operators
the significant contractual terms utilized in the determination of mining revenue, total mining rewards earned and the digital asset
wallet addresses in which the rewards are deposited to test the occurrence and accuracy of mining revenue as the participant.

●We confirmed the year-end digital asset balances directly
with the custodians of the Company’s wallets.

Goodwill valuation

As disclosed in Note 4 to the financial statements,
the Company completed an acquisition of an operational data center. The Company accounted for this transaction under the acquisition method
for business combinations. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their
respective fair values, including identified property, plant and equipment, operating lease right-of-use assets and customer relationship
related intangible assets.

We identified goodwill valuation as a critical
audit matter because of the significant estimates and assumptions made by management in the process.

The procedures we performed to address this critical
audit matter included the following:

●We tested the effectiveness of controls over the fair value
estimate of the identifiable goodwill valuation, including management’s review of the valuation models, as well as the significant
assumptions used in the valuation models, such as future cash flows.

●With the assistance of fair value specialists, we evaluated
the reasonableness of the valuation methodology and significant unobservable inputs and assumptions by: 1) Testing the source information
underlying the determination of certain significant unobservable inputs and assumptions; and 2) Testing the mathematical accuracy of
the calculations.

/s/ Audit Alliance LLP

We have served as the Company’s auditor
since 2020.

Singapore,

March 14, 2025

PCAOB ID No. 3487

F-3

BIT DIGITAL, INC.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2024 and December 31, 2023

(Expressed in US dollars, except for the number
of shares)

    December 31,  
    December 31, 

    2024  
    2023 
  
    ASSETS 

    Current Assets 

    Cash and cash equivalents 
    $95,201,335  
    $16,860,934