Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 37

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 37
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    Total 
    $41,505,238  
    $28,319,669 

  (a) As of March 31, 2025 and December 31, 2024, the balance of deposits represented the deposits made to our service providers, who paid utility charges in mining facilities on behalf of the Company. The deposits are refundable upon expiration of the agreement between the Company and the service provider, which may be due within 12 months from the effective date of the agreement. 

  (b) As of March 31, 2025 and December 31, 2024, the balance of prepayments to mining facilities represented the prepayments for service charges from the mining facilities. 

8. LEASES

Lease as Lessee

For the year ended December 31, 2023, the Company
entered into a capacity lease agreement for its cloud services designed to support generative AI workstreams. The initial lease term is
three years, with automatic renewals for successive twelve-month periods. The lease expense incurred in December 2023 is capitalized as
deferred cost since it is directly related to fulfilling its cloud services which commenced operations in January 2024. The capitalized
lease payment was expensed in January 2024.

On July 30, 2024, the Company entered into an
office lease agreement for its headquarters office in New York. The initial lease term is three years with automatic renewals for successive
terms equal in length to the initial term.

20

On August 1, 2024, the Company entered into an
additional capacity lease agreement for its cloud services. The initial lease term is three years with automatic renewals for successive
twelve-month periods.

On December 3, 2024, the Company entered into
a lease agreement in Singapore for general and administrative purposes. The initial lease term is two years with option to renew for one
year.

On February 11, 2025, the Company entered into
an additional office lease agreement for its headquarters office in New York. The initial lease term is twenty-seven months with automatic
renewals on a month-to-month basis.

On March 1, 2025, the Company entered into an
additional capacity lease agreement for its cloud services. The initial lease term is three years with automatic renewals for successive
twelve-month periods.

As of March 31, 2025 and December 31, 2024, operating
right-of-use