Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1561

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 4
Chunk 1561
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 is considered preliminary and therefore
subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill as of the acquisition date
is measured as the excess of consideration transferred over the net assets acquired.

Acquisition-related expenses are recognized separately
from the business combination and are expensed as incurred.

Investment
securities

As of December
31, 2024, investment securities represent the Company’s investments in three funds, a privately held company via a simple agreement
for future equity (“SAFE”), and four privately held companies over which the Company neither has control nor significant influence
through investments in ordinary shares or preferred shares. As of December 31, 2023, investment securities represent the Company’s
investments in one fund and three privately held companies over which the Company neither has control nor significant influence through
investments in ordinary shares or preferred shares.

Investment in equity method investee

In accordance with ASC 323, Investments - Equity
Method and Joint Ventures, the Company accounts for the investment in one privately held company using equity method, because the
Company has significant influence but does not own a majority equity interest or otherwise control over the equity investee.

Under the equity method, the Company initially
records its investment at cost and prospectively recognizes its proportionate share of each equity investee’s net income or loss
into its consolidated statements of operations. When the Company’s share of losses in the equity investee equals or exceeds its
interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments
or guarantees on behalf of the equity investee.

The Company continually reviews its investment
in the equity investee to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors
the Company considers in its determination include the financial condition, operating performance and the prospects of the equity investee;
other company specific information such as recent financing rounds; the geographic region, market and industry in which the equity investee
operates; and the length of time that the fair value of the investment is below its carrying value. If the decline in fair value is deemed
to be other-than-temporary, the carrying value of the equity investee is written down to fair value.

Investment
in funds

Equity securities not accounted for using the
equity method are carried at fair value with unrealized gains and losses recorded in the consolidated income statements, according to