Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 28

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 28
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ocation, which is the leasing of cabinet space and power and (2) connectivity services, which includes
cross-connects. Additionally, the remainder of our revenue is from non-recurring revenue, which primarily includes installation services
related to a customer’s initial deployment.

Revenues from recurring revenue streams are billed
monthly and recognized ratably over the term of the contract, generally 1 to 5 years for data center colocation customers. Non-recurring
installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term.

We guarantee certain service levels, such as uptime,
as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure
or offerings, or in the event of certain instances of damage to customer infrastructure within our data center, we would reduce revenue
for any credits or cash payments given to the customer.

The Company’s colocation services revenue
has been generated from Canada.

Digital asset mining

The Company has entered into digital asset mining
pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contract is terminable
at any time by either party with no termination penalty. Our enforceable right to compensation begins when, and lasts for as long as,
we provide computing power to the mining pool operator; our performance obligation extends over the contract term given our continuous
provision of computing power. This period of time corresponds with the period of service for which the mining pool operator determines
compensation due to us. Given cancellation terms of the contract, and our customary business practice, the contract effectively provides
the option to renew for successive contract terms daily. In exchange for providing computing power, the Company is entitled to a fractional
share of the fixed digital assets award the mining pool operator receives, for successfully adding a block to the blockchain. The Company’s
fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing
power contributed by all mining pool participants in solving the current algorithm. The Company is entitled to its relative share of consideration
even if a block is not successfully placed.

15

Providing computing power in digital asset transaction
verification services is an output of the Company’s ordinary activities. The provision of such computing power is the only performance
obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is
noncash consideration. ASC 606-10-32-