Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 123

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 123
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 due to a decrease of 603.9 bitcoins
generated from our mining business and partially offset by a higher average BTC price for the nine months ended September 30, 2025, compared
to the same period in 2024.

Revenue
from ETH staking

During
the fourth quarter of 2022, we commenced ETH staking business, in both native staking and liquid staking.

For
the ETH native staking business, we previously partnered with Blockdaemon, Marsprotocol and MarsLand. Currently, we stake ETH with Figment,
using network-based smart contracts, on a node for the purpose of validating transactions and adding blocks to the network. Through these
contracts, the Company stakes ETH on nodes for the purpose of validating transactions and adding blocks to the Ethereum blockchain network.
The Company is able to withdraw staked ETH under contracted staking since April 12, 2023 when the announced Shanghai upgrade was completed.
In exchange for staking the ETH and validating transactions on blockchain networks, the Company is entitled to block rewards and transaction
fees for successfully validating or adding a block to the blockchain. These rewards are received by the Company directly from the Ethereum
network and are calculated approximately based on the proportion of the Company’s stake to the total ETH staked by all validators.

In
the fourth quarter of 2023, the Company terminated the native staking activities and reclaimed all staked Ethereum with Blockdaemon.
Our native staking operations with Marsprotocol commenced in the first quarter of 2023 and concluded in July 2023. After ceasing operations
with Marsprotocol, we initiated our native staking operations with MarsLand in August 2023. In the first quarter of 2024, we concluded
our operations with MarsLand and initiated our native staking operations with Figment. As of December 31, 2024, all of our native staking
operations are with Figment.

For
the liquid staking business, the Company has deployed ETH into Portara protocol (formerly known as Harbour) supported by liquid staking
solution provider under the consortium of Blockdaemon and Stakewise, and Liquid Collective protocol supported by Coinbase. By staking,
we receive receipt tokens for the ETH staked which could be redeemed to ETH or can be traded or collateralized elsewhere, at any time.
In addition, we receive rETH-h for rewards earned from Portara protocol. With the introduction of staked ETH withdrawals in April 2023,
we have reassessed our Ethereum network