Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 186

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 186
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In the first quarter of 2024, the Company has
restaked 3,008 ETH into EigenLayer, a protocol built on Ethereum that enables restaking of the already-staked ETH, through Figment. To
mitigate potential risks, we restake our ETH without delegating to any operator and the Company received 33,568 EigenLayer in the fourth
quarter of 2024 from this restaking activity. As of the date of this report, the reward earned in 2025 from this restaking activity is
not significant.  

For the three months ended June 30, 2025, we earned
166.8 ETH in native staking. For the three months ended June 30, 2025, we recognized revenues of $365,332 from native staking.

For the three months ended June 30, 2024, we earned
109.4 ETH in native staking. For the three months ended June 30, 2024, we recognized revenues of $373,812 from native staking.  

Our revenues from ETH native staking decreased
by $8,480, or 2.3%, to $365,332 for the three months ended June 30, 2025 from $373,812 for the three months ended June 30, 2024. The decrease
was primarily due to an increase of 57.4 ETH earned from staking services partially offset by a decrease in the average price of ETH for
the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Cost of revenue

We incur cost of revenue from digital asset mining,
cloud services, colocation services, and ETH staking businesses.

The Company’s cost of revenue consists primarily
of direct production costs associated with its core operations, excluding depreciation and amortization, which are separately stated in
the Company’s consolidated statements of operations. Specifically, these costs consist of:

    i.
    cloud services operations - electricity costs, datacenter lease expense, GPU servers lease expense, and other relevant costs

    ii.
    colocation services - electricity costs, lease costs, data center employees’ wage expenses, and other relevant costs

    iii.
    mining operations - electricity costs, profit-sharing fees and other relevant costs

    iv.
    ETH staking business - service fee and reward-sharing fees to the service providers.

Cost of revenue - cloud services

For the three months ended June 30,