Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 51

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 51
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 three and six months ended June 30, 2025
and 2024, the Company did not record upward adjustments or downward adjustments on the investment. The Company’s impairment analysis
considers both qualitative and quantitative factors that may have a significant effect on the fair value of the equity security. As of
June 30, 2025 and December 31, 2024, the Company did not recognize impairment against the investment security.

(e) Investment in Cysic Inc (“Cysic”) 

On April 2, 2024, the Company closed an investment
of $100,000 in Cysic, a ZK hardware acceleration company and ZK prover network to provide ZK Compute-as-a-Service. The Company has neither
control nor significant influence through investment in preferred shares. The Company accounted for the investment in Cysic using the
measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions
for identical or similar investments of the same issuer.

For the three and six months ended June 30, 2025,
the Company did not record upward adjustments or downward adjustments on the investment. The Company’s impairment analysis considers
both qualitative and quantitative factors that may have a significant effect on the fair value of the equity security. As of June 30,
2025 and December 31, 2024, the Company did not recognize impairment against the investment security.   

(f) Investment in a SAFE 

On June 30, 2024 (the “Effective Date”),
the Company entered into a simple agreement for future equity (“SAFE”) agreement for an initial investment amount of $1 million
in exchange for a right to participate in a future equity financing of preferred stock to be issued by Canopy Wave Inc. (“Canopy”).
Alternatively, upon a liquidity event such as a change in control, a direct listing or an initial public offering, the Company is entitled
to receive the greater of (i) the SAFE investment amount plus 15% annual accrued interest (the “cash-out amount”) or (ii)
the SAFE investment amount divided by a discount to the price per share of Canopy’s common stock. In a dissolution event, such as
a bankruptcy, the Company is entitled to receive the cash-out amount. If the SAFE is outstanding on the three-year anniversary of the
Effective Date, then the SAFE will expire and the Company will be entitled to receive the cash-out amount. In the event of a qualifying
equ