Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 41

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 41
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 30, 2025       $75,334,053   $91,214,450  

The cost basis is equal to the post-impairment
value of all BTC and ETH held as of the adoption of ASU 2023-08 on January 1, 2024. For BTC and ETH earned subsequent to the adoption
of ASU 2023-08, the cost basis of the BTC and ETH represents the valuation at the time the Company determined for revenue recognition
purposes.

The following table presents a roll-forward of
BTC for the six months ended June 30, 2025, based on the fair value model under ASU 2023-08:

    Fair value 
  
    BTC as of December 31, 2024 
    $69,319,731 
  
    Receipt of BTC from mining services 
     14,408,801 
  
    Sales of BTC in exchange of cash 
     (53,963,734)
  
    Sales of BTC in exchange of USDC 
     (1,223,250)
  
    Payment of BTC for service charges from mining facilities 
     (1,166,722)
  
    Payment of BTC for other expenses 
     (73,707)
  
    Change in fair value of BTC 
     2,750,481 
  
    BTC fair value as of June 30, 2025 
    $30,051,600 

For the additions of BTC generated
by the Company’s mining business, see Note 3. Revenue from Contracts with Customers.

Bitcoin
is sold on a FIFO basis. For the six months ended June 30, 2025, gains from the sales of bitcoin are included in change in fair value
of BTC which is included in the consolidated statements of operations under the caption “Gains (losses) on digital assets”.

The following table presents a roll-forward of
ETH for the six months ended June 30, 2025, based on the fair value model under ASU 2023-08:

    Fair value 
  
    ETH as of December 31, 2024 
    $92,057,613 
  
    Receipt of ETH from native staking business 
     925,973 
  
    Investment of ETH in fund 
     (7,030,398)
  
    Payment of ETH for other expenses 
     (780)
  
    Change in fair value of ETH