Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 117

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 117
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 lease agreement for a fixed monthly recurring cost.

For
the three months ended September 30, 2025, data center lease expenses totaled $0.2 million. We had no data center lease expenses for
the three months ended September 30, 2024 as we acquired Enovum in the fourth quarter of 2024, which provides colocation services.

Wage
expenses. These expenses represent the salaries and benefits of data center employees involved in the operation of our facilities.

For
the three months ended September 30, 2025, wage expenses totaled $0.1 million. We had no wage expenses for the three months ended September
30, 2024 as we acquired Enovum in the fourth quarter of 2024, which provides colocation services.

58

Cost
of revenue - digital asset mining

For
the three months ended September 30, 2025 and 2024, the cost of revenue from digital asset mining was comprised of the following:

    For
    the Three Months Ended September 30, 

    2025  
    2024 

    Electricity costs 
    $3,625,625  
    $8,508,918 
  
    Profit-sharing fees 
     993,277  
     902,494 
  
    Other costs 
     413,790  
     586,619 
  
    Total 
    $5,032,692  
    $9,998,031 

Electricity
costs. These expenses were incurred by mining facilities for the miners in operation and were closely correlated with the number
of deployed miners.

For
the three months ended September 30, 2025, electricity costs decreased by $4.9 million, or 57%, compared to the electricity costs incurred
for the three months ended September 30, 2024. The decrease primarily resulted from a decrease in the number of deployed miners.

Profit-sharing
fees. We enter into hosting agreements with certain mining facilities, which included performance fees calculated as a fixed
percentage of net profit generated by the miners. We refer to these fees as profit-sharing fees.

For
the three months ended September 30, 2025, profit-sharing fees increased by $0.1 million, or 10%, compared to profit-sharing fees incurred
in the three months ended September 30, 2024. The increase in profit-sharing fees was primarily due to the higher average BTC price and
part