Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 27

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 27
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 close
price from CryptoCompare to recognize revenue from our digital asset mining activities. The Company believed the hourly close price can
better reflect revenue recognized from our digital asset mining activities as compared to the daily close price from CoinMarketCap used
at the time.

Purchases
of digital assets by the Company and digital assets awarded to the Company through its mining activities and staking activities are included
within operating activities on the accompanying consolidated statements of cash flows. The changes of digital assets are included within
operating activities in the accompanying consolidated statements of cash flows. After adopting ASU 2023-08, changes in fair value and
realized gains or losses are now reported as “gains (losses) on digital assets” in the consolidated statements of operations.
Prior to this adoption, realized gains or losses were reported as “realized gains (losses) on exchange of digital assets”
in the consolidated statements of operations. The Company accounts for its gains or losses in accordance with the first-in first-out
method of accounting.

Deposits for
property, plant, and equipment

The
deposits for property, plant, and equipment (“PP&E”) represented advance payments for purchases of miner, high performance
computing equipment and other equipment used in our colocation services. The Company initially recognizes deposits for PP&E when
cash is advanced to our suppliers. Subsequently, the Company derecognizes and reclassifies deposits for PP&E to PP&E when control
is transferred to and obtained by the Company.

Below
is the roll forward of the balance of deposits for PP&E for the nine months ended September 30, 2025 and for the year ended December
31, 2024, respectively.

    September 30,  
    December 31, 

    2025  
    2024 

    Opening balance 
    $39,059,707  
    $4,227,371 
  
    Reclassification to PP&E 
     (121,095,949) 
     (28,129,082)
  
    Addition of deposits for PP&E 
     92,015,818  
     64,042,703 
  
    Adjustment (a) 
     -  
     (1,081,285)
  
    Ending balance 
    $9,979,576  
    $39,059,707 

(a)The adjustment represents a reimbursement from the customer for equipment purchased under an