Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 101

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 101
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 provides colocation services.

Lease expenses. These expenses were
incurred by the data center for lease agreement for a fixed monthly recurring cost.

For the three months ended June 30, 2025 , data
center lease expenses totaled $0.2 million. We had no data center lease expenses for the three months ended June 30, 2024 as we acquired
Enovum in the fourth quarter of 2024, which provides colocation services.

Wage expenses. These expenses represent
the salaries and benefits of data center employees involved in the operation of our facilities.

For the three months ended June 30, 2025, wage
expenses totaled $0.2 million. We had no wage expenses for the three months ended June 30, 2024 as we acquired Enovum in the fourth quarter
of 2024, which provides colocation services.

56

Cost of revenue - digital asset mining

For the three months ended June 30, 2025 and 2024,
the cost of revenue from digital asset mining was comprised of the following:

    For the Three Months Ended
 June
    30, 

    2025  
    2024 

    Electricity costs 
    $4,334,282  
    $7,177,302 
  
    Profit-sharing fees 
     1,051,811  
     2,714,035 
  
    Other costs 
     689,492  
     646,504 
  
    Total 
    $6,075,585  
    $10,537,841 

Electricity costs. These expenses
were incurred by mining facilities for the miners in operation and were closely correlated with the number of deployed miners.

For the three months ended June 30, 2025, electricity
costs decreased by $2.8 million, or 40%, compared to the electricity costs incurred for the three months ended June 30, 2024. The decrease
primarily resulted from a decrease in the number of deployed miners.

Profit-sharing fees. We enter into
hosting agreements with certain mining facilities, which included performance fees calculated as a fixed percentage of net profit generated
by the miners. We refer to these fees as profit-sharing fees.

For the three months ended June 30, 2025, profit-sharing
fees decreased by $1.7 million, or 61%, compared to profit-sharing fees incurred in the three months ended June