Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 20

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 20
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 Company considered CoinMarketCap to be its principal market. Effective April 1, 2025, the Company determined
that Coinbase is its principal market as it provides the most reliable and greatest volume and level of activity for bitcoin and ETH for
which the Company can access.

The Company recognizes mining revenue by utilizing
the spot price of Bitcoin determined using Coinbase at 0:00:00 UTC on the date of contract inception and staking revenue by utilizing
the daily close prices obtained from Coinbase. In 2022, the Company also used hourly close price from CryptoCompare to recognize revenue
from our digital asset mining activities. The Company believed the hourly close price can better reflect revenue recognized from our digital
asset mining activities as compared to the daily close price from CoinMarketCap used at the time.

Purchases of digital assets by the Company and
digital assets awarded to the Company through its mining activities and staking activities are included within operating activities on
the accompanying consolidated statements of cash flows. The changes of digital assets are included within operating activities in the
accompanying consolidated statements of cash flows. After adopting ASU 2023-08, changes in fair value and realized gains or losses are
now reported as “gains (losses) on digital assets” in the consolidated statements of operations. Prior to this adoption, realized
gains or losses were reported as “realized gains (losses) on exchange of digital assets” in the consolidated statements of
operations. The Company accounts for its gains or losses in accordance with the first-in first-out method of accounting.

Deposits for property,
plant, and equipment

The deposits for property, plant, and equipment (“PP&E”)
represented advance payments for purchases of miner, high performance computing equipment and other equipment used in our colocation services.
The Company initially recognizes deposits for PP&E when cash is advanced to our suppliers. Subsequently, the Company derecognizes
and reclassifies deposits for PP&E to PP&E when control is transferred to and obtained by the Company.

Below is the roll forward of the balance of deposits
for PP&E for the six months ended June 30, 2025 and 2024, respectively.

    For the Six Months Ended
 June
    30, 

    2025  
    2024 

    Opening balance 
    $39,059,707  
    $4,227,371 
  
    Reclassification to PP&E 
     (97,296