Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 30

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 30
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30, 2025 and 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.

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 ASC 321, Investments - Equity Securities. As a practical expedient, the Company uses Net
Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund. NAV is primarily determined
based on information provided by the fund administrator.

13

Investment
in privately held company

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 ASC 321, Investments - Equity Securities.