Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 966

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 966
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 the Company wrote off 917BTC miners and 1 ETH miner during the year, and the Company recorded a loss of $0.2 million resulting
from the write-off in the account of “net (loss) gain from disposal of property and equipment”.

Gain from sale of investment security 

For the year ended December 31, 2023, we sold
our investment in one privately held company with a cost of $81,299 for consideration of $89,519. We recognized a gain of$8,220 from the
sale which was recorded in the account of “gain from sale of investment security”.

For the year ended December 31, 2022, we sold
a portion of our investment in one privately held company with a cost of $0.7 million for consideration of $1.7 million. We recognized
a gain of $1.0 million from the sale which was recorded in the account of “gain from sale of investment security”.

Income tax expenses

The following table provides details of income
taxes:

    For the Years Ended December 31, 

    2023  
    2022 

    Income (loss) before income taxes 
    $(13,614,237) 
    $(105,889,453)
  
    Provision for income taxes 
     279,044  
     (592,852)
  
    Effective tax rate 
     (2.0)% 
     0.6%

Tax expense changed as a percentage of income
before taxes during the year ended December 31, 2023 compared to the year ended December 31, 2022 primarily due to the impact of tax expense
increases by $0.9 million in year ended December 31, 2023 due to the overall higher foreign income taxes expenses.

94

Our future effective income tax rate depends on
various factors, such as tax legislation, the geographic composition of our pre-tax income, the amount of our pre-tax income as business
activities fluctuate, non-deductible expenses, non-taxable capital gain in certain jurisdictions, change of valuation allowance and the
effectiveness of our tax planning strategies. We also continue to monitor the adoption of Pillar Two relating to the global minimum tax
in each of our tax jurisdictions to evaluate its impact on our effective income tax rate. For the year ended December 31, 2023, we are
not subject to Pillar Two global minimum tax. For more details on the Company