Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 19

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 19
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- 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.

10

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. The Company elected to record the equity investments in
privately held companies 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. 

Equity investments
in privately held companies accounted for using the measurement alternative are subject to periodic impairment reviews. The Company’s
impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the