Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 196

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 196
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 for the six months ended June 30, 2025 from $695,055 for the six months ended June 30, 2024. The increase
was primarily due to an increase of 157.3 ETH earned from staking services partially offset by a decrease in the average price of ETH
for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Our revenues from ETH liquid staking decreased by $4,503, or 100%,
to $0 for the six months ended June 30, 2025 from $4,503 for the six months ended June 30, 2024. The decrease was due to the termination
of liquid staking activities in the first quarter of 2024.

Cost of revenue

We incur cost of revenue from digital asset mining,
cloud services, colocation services, and ETH staking businesses.

The Company’s cost of revenue consists primarily
of direct production costs associated with its core operations, excluding depreciation and amortization, which are separately stated in
the Company’s consolidated statements of operations. Specifically, these costs consist of:

    i.
    cloud services operations - electricity costs, datacenter lease expense, GPU servers lease expense, and other relevant costs

    ii.
    colocation services - electricity costs, lease costs, data center employees’ wage expenses, and other relevant costs 

    iii.
    mining operations - electricity costs, profit-sharing fees and other relevant costs

    iv.
    ETH staking business - service fee and reward-sharing fees to the service providers.

Cost of revenue - cloud services

For the six months ended June 30, 2025 and 2024,
the cost of revenue from cloud services was comprised of the following:

    For the Six Months Ended
 June
    30, 

    2025  
    2024 

    Electricity costs 
    $1,171,592  
    $226,421 
  
    Datacenter lease expenses 
     2,639,653  
     1,306,110 
  
    GPU servers lease expenses 
     7,496,856  
     5,912,240 
  
    Other costs 
     1,171,019  
     307,857 
  
    Total 
    $12,479,120  
    $7,752,628 

61

Electricity costs. These expenses
were incurred by the data