Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 102

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 102
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30, 2024. The decrease
in profit-sharing fees was primarily due to a lower bitcoin production and partially offset by the higher average BTC price for three
months ended June 30, 2025.

Cost of revenue - ETH staking 

For the three months ended June 30, 2025, cost
of revenue from ETH staking business increased by $5,177, or 21%, compared to the cost of revenue incurred for the three months ended
June 30, 2024. The increase was primarily driven by an increased number of staked ETH from 17,184 ETH in the three months ended June 30,
2024 to 21,568 ETH in the three months ended June 30, 2025.

Depreciation and amortization expenses

For the three months ended June 30, 2025 and 2024,
depreciation and amortization expenses were $8.2 million and $8.3 million, respectively, based on an estimated useful life of property,
plant, and equipment.

Effective January 1, 2025, we changed our estimate
of the useful lives for our cloud service equipment from three to five years. The change was made to better reflect the expected usage
patterns and economic benefits of the assets. Refer to Note 2. Summary of Significant Accounting Policies.

General and administrative expenses 

For the three months ended June 30, 2025, our
general and administrative expenses, totaling $19.7 million, were primarily comprised of professional and consulting expenses of $7.9
million, shared-based compensation expenses of $6.9 million, salary and bonus expenses of $1.8 million, marketing expenses of $0.6 million,
travel expenses of $0.3 million, and directors and officers insurance expenses of $0.2 million.

For the three months ended June 30, 2024, our
general and administrative expenses, totaling $5.5 million, were primarily comprised of shared-based compensation expenses of $0.4 million,
salary and bonus expenses of $1.0 million, professional and consulting expenses of $2.3 million, directors and officers insurance expenses
of $0.2 million, marketing expenses of $0.4 million, and travel expenses of $0.3 million.

57

Gains (losses) on digital assets

For the three months ended June 30, 2025, a gain
of $27.2 million was recognized, primarily attributable