Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 184

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 184
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, 2024.

Revenue from digital asset mining

We provide computing power to digital asset mining
pools, and receive consideration in the form of digital assets, the value of which is determined using the market price of the related
digital asset at the time of receipt. By providing computing power to successfully add a block to the blockchain, the Company is entitled
to a fractional share of the digital assets award from the mining pool operator, which is based on the proportion of computing power the
Company contributed to the mining pool to the total computing power contributed by all mining pool participants in solving the current
algorithm. 

For the three months ended June 30, 2025, we received
68.2 bitcoins from the 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 three months ended June 30, 2025, we recognized revenue of $6.6 million from bitcoin mining services.

For the three months ended June 30, 2024, we received
244.2 bitcoins from the Foundry mining pool. As of June 30, 2024, our maximum hash rate was at an aggregate of 4.2 EH/s for our bitcoin
miners. For the three months ended June 30, 2024, we recognized revenue of $16.1 million from bitcoin mining services.

Our revenues from digital asset mining services
decreased by $9.4 million, or 58.8%, to $6.6 million for the three months ended June 30, 2025 from $16.1 million for the three months
ended June 30, 2024. The decrease was primarily due to a decrease of 176.0 bitcoins generated from our mining business and partially offset
by a higher average BTC price in the second quarter of 2025, compared to the same period in 2024.

Revenue from ETH staking

During the fourth quarter of 2022, we commenced
ETH staking business, in both native staking and liquid staking.

For the ETH native staking business, we previously
partnered with Blockdaemon, Marsprotocol and MarsLand. Currently, we stake ETH with Figment, using network-based smart contracts, on a
node for the purpose of validating transactions and adding blocks to the network. Through these contracts, the Company stakes ETH on nodes
for the purpose of validating transactions