Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1327

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1327
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 of digital assets was $6.6 million
for the year ended December 31, 2023. We utilized the intraday low price of digital assets in the calculation of impairment of digital
assets. For the year ended December 31, 2023, the impairment of $6.6 million was comprised of impairment of $4.5 million and $2.1 million
on bitcoins and ETH, respectively.

Net (loss) gain from disposal of property and
equipment

For the year ended December 31, 2024, the Company
sold 5,606 bitcoin miners for a total consideration of $ 1.2 million. On the dates of the transaction, the total original cost and accumulated
depreciation of these miners were $7.4 million and $5.3 million, respectively. The Company recognized a loss of $850,120 from the sale
of miners which was recorded in the account of “net (loss) gain from disposal of property. As of the date of this report, the Company
has collected the cash consideration of $0.8 million.

89

For the year ended December 31, 2024, the Company
wrote off 19,889 BTC miners during the year, and the Company recorded a loss of $nil resulting from the writing off in the account of
“net (loss) gain from disposal of property and equipment”.

For the year ended December 31, 2023, the Company
wrote off 5,238 BTC miners and 730 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”.

Income tax expenses

The following table provides details of income
taxes:

    For the Years Ended December 31, 

    2024  
    2023 

    Income (loss) before income taxes 
    $32,283,977  
    $(13,614,237)
  
    Provision for income taxes 
     3,978,167  
     279,044 
  
    Effective tax rate 
     12.3% 
     (2.0)%

Tax expense was higher as a percentage of income
before taxes during the year ended December 31, 2024 compared to the year ended December 31, 2023 primarily due to the impact of tax expense
increases by $1.