Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 193

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 193
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 services to support generative AI workstreams. The Company commenced the cloud services in January
2024.

Our revenues from cloud services increased by
$10.9 million, or 52.9%, to $31.4 million for the six months ended June 30, 2025 from $20.6 million for the six months ended June 30,
2024. The increase was primarily due to an increase in deployed GPU servers for the six months ended June 30, 2025 and the $1.3 million
service credit issued to the customer as compensation for decreased utilization during the initial deployment period, which included testing
and optimization phases, in the first quarter of 2024.

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Revenue from colocation services

Our revenue from colocation services was $3.4 million for the six months
ended June 30, 2025. We had no revenue from colocation services for the six months ended June 30, 2024. In the fourth quarter of 2024,
we acquired Enovum which provides customers with physical space, power, and cooling within the data center facility.

Revenue from 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.

For the six months ended June 30, 2025, we received
151.5 bitcoins from the Foundry USA Pool (“Foundry”) mining pool. As of June 30, 2025, our maximum hash rate was at an aggregate
of 2.7 EH/s for our bitcoin miners. For the six months ended June 30, 2025, we recognized revenue of $14.4 million from bitcoin mining
services.

For the six months ended June 30, 2024, we received
654.9 bitcoins from the Foundry mining pool. As of June 30, 2024, our maximum hash rate was at an aggregate of 4.3 EH/s for our bitcoin
miners. For the six months ended June 30, 2024, we recognized revenue of $38.0 million from bitcoin mining services.

Our revenues from digital asset mining services
decreased by $23.6 million, or 62.1%, to $14.4 million for the six months ended June