Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 109

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 109
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 2022, we formally commenced Ethereum staking operations. We delegate or stake our ETH holdings to an Ethereum validator
node to help secure and strengthen the blockchain network. Stakers are compensated for this commitment in the form of a reward of the
native network token.

Our
native staking operations are enhanced by a partnership with Blockdaemon, the leading institutional-grade blockchain infrastructure company
for node management and staking. In the fourth quarter of 2022, following a similar mechanism to native Ethereum staking, we also participated
in liquid staking via Portara protocol (formerly known as Harbour), the liquid staking protocol developed by Blockdaemon and StakeWise
and the first of its kind tailored to institutions. With the introduction of staked ETH withdrawals in April 2023, we have reassessed
our Ethereum network staking approaches, weighing the advantages of traditional staking against liquid staking solutions. The withdrawal
feature in native staking, coupled with yields that are on par with those of liquid staking, has encouraged us to expand our collaborations
with other service providers in this domain. As a result, we terminated all liquid staking activities with StakeWise in the third quarter
of 2023, reclaiming all staked Ethereum along with the accumulated rewards. 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 Technologies Pte. Ltd. (“Marsprotocol”) commenced in the first quarter of 2023
and concluded in July 2023. After ceasing operations with Marsprotocol, we initiated our native staking with MarsLand Global Limited
(“MarsLand”) in August 2023. Subsequently, we have ceased our native staking with MarsLand in the first quarter of 2024 and
initiated our native staking with Figment Inc.

We
started participating in liquid staking via Liquid Collective protocol on the Coinbase platform in the first quarter of 2023. Liquid
staking allows participants to achieve greater capital efficiency by utilizing their staked ETH as collateral and trading their staked
ETH tokens on the secondary market. In the first quarter of 2024, we have reclaimed all the liquid staked ETH from Liquid Collective
protocol. In July 2025, we resumed liquid staking through the Liquid Collective protocol with 5,120 ETH. This approach provides
flexibility to engage in both staking and restaking through