Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1325

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1325
---
2,532,892  
     1,326,540 
  
    Total 
    $42,307,012  
    $29,505,783 

Electricity costs. These expenses
were incurred by mining facilities for the miners in operation and were closely correlated with the number of deployed miners.

For the year ended December 31, 2024, electricity
costs increased by $8.3 million, or 37%, compared to the electricity costs incurred for the year ended December 31, 2023. The increase
primarily resulted from an increase in the number of deployed miners.

Profit-sharing fees. We enter into
hosting agreements with certain mining facilities, which included performance fees calculated as a fixed percentage of net profit generated
by the miners. We refer to these fees as profit-sharing fees.

For the year ended December 31, 2024, profit-sharing
fees increased by $3.3 million, or 55%, compared to profit-sharing fees incurred in the year ended December 31, 2023. The increase in
profit-sharing fees was primarily due to the higher average BTC price for the year ended December 31, 2024, partially offset by a lower
bitcoin production as a result of the halving of BTC, which occurred on April 19, 2024.

We expect a proportionate increase in the cost
of revenue as we continue to focus on the expansion and upgrade of our miner fleet.

Cost of revenue - ETH staking business

For the year ended December 31, 2024, cost of
revenue from ETH staking business increased by $21,265, or 42%, compared to the cost of revenue incurred for the year ended December 31,
2023. The increase primarily resulted from increased service costs due to the increased number of staked ETH.

88

Depreciation and amortization expenses

For the years ended December 31, 2024 and 2023,
depreciation and amortization expenses were $32.3 million and $14.4 million, respectively based on an estimated useful life of property,
plant, and equipment as discussed in Note 2. Summary of Significant Accounting Policies.

General and administrative expenses 

For the year ended December 31, 2024, our general
and administrative expenses, totaling $41.5 million, were primarily comprised of shared-based compensation expenses of $9.9 million, salary
and bonus expenses of $9.8 million,