Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1193

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1193
---
 less any accumulated amortization and any accumulated impairment losses. Intangible assets acquired through
business combinations are measured at fair value at the acquisition date.

Intangible
assets with finite lives are comprised of customer relationships and are amortized on straight-line basis over their estimated useful
lives. The Company assesses the appropriateness of finite-lived classification at least annually. Additionally, the carrying value and
remaining useful lives of finite-lived assets are reviewed annually to identify any circumstances that may indicate potential impairment
or the need for a revision to the amortization period. A finite-lived intangible asset is considered to be impaired if its carrying value
exceeds the estimated future undiscounted cash flows expected to be generated from it. We apply judgment in selecting the assumptions
used in the estimated future undiscounted cash flow analysis. Impairment is measured by the amount that the carrying value exceeds fair
value. The useful lives of customer relationships is 19 years.

F-13

Business
combinations

The Company accounts for business combinations
under the acquisition method of accounting in accordance with ASC 805 - Business Combinations, by recognizing the identifiable
tangible and intangible assets acquired and liabilities assumed, measured at the acquisition date fair value. The determination of fair
value involves assumptions, estimates, and judgments. The initial allocation of the purchase price is considered preliminary and therefore
subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill as of the acquisition date
is measured as the excess of consideration transferred over the net assets acquired.

Acquisition-related expenses are recognized separately
from the business combination and are expensed as incurred.

Investment
securities

As of December
31, 2024, investment securities represent the Company’s investments in three funds, a privately held company via a simple agreement
for future equity (“SAFE”), and four privately held companies over which the Company neither has control nor significant influence
through investments in ordinary shares or preferred shares. As of December 31, 2023, investment securities represent the Company’s
investments in one fund and three privately held companies over which the Company neither has control nor significant influence through
investments in ordinary shares or preferred shares.

Investment in equity method investee

In accordance with ASC 323, Investments - Equity
Method and Joint Ventures, the Company accounts for the investment in one privately held company using equity method, because the
Company has significant influence but does not own a majority equity interest