Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 73

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 73
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 respectively. The income
tax provision was higher during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily
due to increase of $1.2 million in Iceland due to the higher operation profits during the three months ended September 30, 2025 compared
to the same period in 2024 and decrease of $0.3 million in the United States due to the rapid investment in infrastructures in Iceland,
which results in a lower GILTI tax in the United States, during the three months ended September 30, 2025 compared to the same period
in 2024 and decrease of $0.7 million due to the operating loss from Enovum during the three months ended September 30, 2025 compared
to the same period in 2024.

Our
provision for income taxes remained relatively flat during the nine months ended September 30, 2025, compared to the same period in 2024.

Our
future effective income tax rate depends on various factors, such as tax legislation, the geographic composition of our pre-tax income,
the amount of our pre-tax income as business activities fluctuate, non-deductible expenses, non-taxable book gain in certain jurisdiction,
change of valuation allowance and the effectiveness of our tax planning strategies.

With
the enactment of the One Big Beautiful Bill Act (“OBBBA”) on July 4, 2025, the Company anticipates a reduction in our U.S.
federal cash tax payments for the remainder of 2025 as the 100% bonus depreciation on qualified assets is permanently restored. There
are several alternative ways of implementing the provisions of the OBBBA, which we are currently evaluating. The impacts of OBBBA were
not material to the income tax provision for the three months ended September 30, 2025.

We
also continue to monitor the adoption of Pillar Two relating to the global minimum tax in each of our tax jurisdictions to evaluate its
impact on our effective income tax rate. For the three months ended September 30, 2025, the Company is not subject to Pillar Two global
minimum tax.

36

16. EARNINGS
(LOSS) PER SHARE

    For
    the Three Months Ended  September 30,  
    For
    the Nine Months Ended  September 30, 

    2025  
    2024  
    2025