Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 245

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 245
---
, or 59%, compared to profit-sharing fees incurred
in the nine months ended September 30, 2024. The decrease in profit-sharing fees was primarily due to a lower bitcoin production and
partially offset by the higher average BTC price for nine months ended September 30, 2025.

Cost
of revenue - ETH staking

For
the nine months ended September 30, 2025, cost of revenue from ETH staking business increased by $122,852, or 234%, compared to the cost
of revenue incurred for the nine months ended September 30, 2024. The increase was primarily driven by an increased number of staked
ETH from 21,568 ETH in the nine months ended September 30, 2024 to 99,936 ETH in the nine months ended September 30, 2025.

Depreciation
and amortization expenses

For
the nine months ended September 30, 2025 and 2024, depreciation and amortization expenses were $25.1 million and $23.6 million, respectively
based on an estimated useful life of property, plant, and equipment.

Effective
January 1, 2025, we changed our estimate of the useful lives for our cloud service equipment from three to five years. The change was
made to better reflect the expected usage patterns and economic benefits of the assets. Refer to Note 2. Summary of Significant Accounting
Policies.

65

General
and administrative expenses 

For
the nine months ended September 30, 2025, our general and administrative expenses, totaling $61.0 million, were primarily comprised of
professional and consulting expenses of $23.3 million, shared-based compensation expenses of $18.0 million, salary and bonus expenses
of $8.1 million, marketing expenses of $2.6 million, travel expenses of $0.7 million, and directors and officers insurance expenses of
$0.8 million.

For
the nine months ended September 30, 2024, our general and administrative expenses, totaling $25.1 million, were primarily comprised of
shared-based compensation expenses of $5.9 million, salary and bonus expenses of $3.8 million, professional and consulting expenses of
$9.6 million, directors and officers insurance expenses of $0.6 million, marketing expenses of $1.3 million, and travel expenses of $0.7
million.

Gains
on digital assets

For