Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 353

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 353
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 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.

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 606-10-32-21 requires entities to measure the estimated fair value of noncash consideration at contract inception.
Because the consideration to which the Company expects to be entitled for providing computing power is entirely variable, as well as being
noncash consideration, the Company assesses the estimated amount of the variable noncash consideration at contract inception and subsequently,
to determine when and to what extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not
occur once the uncertainty associated with the variable consideration is subsequently resolved. Because it is probable that a significant
reversal of cumulative revenue will not occur and the Company is able to calculate the payout based on the contractual formula, this amount
should be estimated and recognized in revenue upon inception, which is when the hash rate is provided.

For reasons of operational practicality, the Company
applies an accounting convention to use the daily quoted closing U.S. dollar spot rate of digital asset each day to determine the fair
value of digital asset on the date received, which is not materially different than the fair value at contract inception or the time the
Company has earned the award from the pools.

Below table presents the Company’s revenues
generated from digital asset mining business by countries:

    For the Years Ended 
December 31, 

    2024  
    2023  
    2022 
  
    United States 
    $51,749,240  
    $36