Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 580

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 580
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 and other relevant costs,
but excluding depreciation and amortization, which are separately stated in the Company’s consolidated statements of operations,
(ii) direct production costs related to cloud services operations, including electricity costs, datacenter lease expense, GPU servers
lease expense, and other relevant costs, but excluding depreciation and amortization, which are separately stated in the Company’s
consolidated statements of operations, (iii) direct production costs related to colocation services, including electricity costs, lease
costs and other relevant costs and (iv) direct cost related to ETH staking business including service fee and reward-sharing fees to the
service providers.

Cost of revenue - cloud services

For the years ended December 31, 2024 and 2023,
the cost of revenue from cloud services was comprised of the following:

    For the Years Ended December 31, 

    2024  
    2023 

    Electricity costs 
    $1,007,112  
    $- 
  
    Datacenter lease expenses 
     3,558,987  
     - 
  
    GPU servers lease expenses 
     13,640,737  
     - 
  
    Other costs 
     1,301,416  
     - 
  
    Total 
    $19,508,252  
    $- 

Electricity costs. These expenses were
incurred by the data center for the high performance computing equipment and were closely correlated with the number of deployed GPU servers.

For the year ended December 31, 2024 and 2023,
electricity costs totaled $1.0 million and $nil, respectively.

Data center lease expenses. In December
2023, we entered into a data center lease agreement for a fixed monthly recurring cost.

For the year ended December 31, 2024 and 2023,
data center lease expenses totaled $3.6 million and $nil, respectively.

GPU servers lease expenses. In 2023,
we entered into a GPU servers lease agreement to support our cloud services. The lease payment depends on the usage of the GPU servers.

For the year ended December 31, 2024 and 2023,
GPU servers lease expenses totaled $13.6 million and $nil, respectively.

87

Cost of revenue - Colocation Services

For the years ended December 31, 2024 and 2023,
the cost of revenue from colocation services was comprised of the following:

    For the