Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 40

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 40
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, which included testing and optimization
phases.

The
Company’s cloud services revenue has been generated from Iceland.

Colocation
services

Colocation
services generate revenue by providing customers with physical space, power, and cooling within the data center facility.

Our
revenue is primarily derived from recurring revenue streams, mainly (1) colocation, which is the leasing of cabinet space and power and
(2) connectivity services, which includes cross-connects. Additionally, the remainder of our revenue is from non-recurring revenue, which
primarily includes installation services related to a customer’s initial deployment.

Revenues
from recurring revenue streams are billed monthly and recognized ratably over the term of the contract, generally one to five years for
data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and
recognized ratably over the contract term.

We
guarantee certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved
due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure
within our data center, we would reduce revenue for any credits or cash payments given to the customer.

The
Company’s colocation services revenue has been generated from Canada.

Digital
asset mining

The
Company enters in contracts with mining pool operators to provide computing power to digital asset mining pools. Providing computing
power for digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of such
computing power is the only performance obligation in the Company’s contracts with mining pool operators.

19

Contract
inception and the Company’s enforceable right to consideration begin when the Company commences providing hash calculation services
to the mining pool operators. Each party to the contract has the unilateral right to terminate the contract at any time without any compensation
to the other party for such termination. As such, the duration of a contract is less than 24 hours (a day) and may be continuously renewed
throughout the day. The implied renewal option is not a material right because there are no upfront or incremental fees in the initial
contract, and the rate of payments remains the same upon each implied renewal, as the Full-Pay-Per-Share (FPPS) formula remains the same.
The Company is entitled to compensation once it begins to perform hash calculations for the pool operator in accordance with the operator’s
specifications over a 24-hour