Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 32

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 32
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, the most advantageous market
for the asset (ASC 820-10-35-5). The fair value of the assets within the Fund was primarily determined using the price from CoinMarketCap.
Any changes in the fair value of the assets were recorded in Other income (expense), net in the consolidated statements of operations.

On
July 1, 2024, the Company entered into a share purchase agreement with Pleasanton Ventures Limited (“Pleasanton Ventures”)
for the disposition of Bit Digital Innovation Master Fund SPC Ltd and Bit Digital Investment Management Limited. Refer to Note 20. Disposition
of Bit Digital Investment Management Limited and Bit Digital Innovation Master Fund SPC Limited, for more information. Upon the disposition,
the Company no longer has a controlling financial interest in the Fund and therefore deconsolidated the Fund in accordance with ASC 810
– “Consolidation” (“ASC 810”). The Company did not record any gain or loss upon deconsolidation
as the digital assets in the Fund were measured at fair value. Subsequently, the investment in the Fund is included under the caption
“Investment securities” as Investment in Innovation Fund. Refer to Note 10. Investment Securities for more information.

Leases

The
Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the
term of such lease is assessed based on the date on which the underlying asset is made available for the Company’s use by the lessor.
The Company’s assessment of the lease term reflects the non-cancellable term of the lease, inclusive of any rent-free periods and/or
periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by
renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating
or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated
statements of operations over the lease term.

14

For
leases with a term exceeding 12 months, an operating lease liability is recorded on the Company’s consolidated balance sheet at
lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding operating
lease right-of-use asset equal to the initial lease liability is also recorded, adjusted for any prepayment and/or initial direct costs
incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present