Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1331

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1331
---
 ETH mining services, respectively.

Our revenues from digital asset mining services
increased by $12.0 million, or 37.1%, to $44.2 million for the year ended December 31, 2023 from $32.3 million for the year ended December
31, 2022. The increase was primarily due to an increase of 259.8 in the number of BTC earned from mining services and an increase in the
average price of BTC for the year ended December 31, 2023 compared to the year ended December 31, 2022.

91

We expect to continue to opportunistically invest
in miners to increase our hash rate capacity.

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 with Blockdaemon,
Marsprotocol and MarsLand, we stake ETH, through 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 and
adding blocks to the Ethereum blockchain network. The Company is able to withdraw staked ETH under contracted staking since April 12,
2023 when the announced Shanghai upgrade was completed. In exchange for staking the ETH and validating transactions on blockchain networks,
the Company is entitled to block rewards and transaction fees for successfully validating or adding a block to the blockchain. These rewards
are received by the Company directly from the Ethereum network and are calculated approximately based on the proportion of the Company’s
stake to the total ETH staked by all validators. In the fourth quarter of 2023, the Company terminated the native staking activities and
reclaimed all staked Ethereum with Blockdaemon.

Our native staking operations with Marsprotocol
commenced in the first quarter of 2023 and concluded in July of the same year. After ceasing operations with Marsprotocol, we initiated
our native staking with MarsLand Global Limited in August 2023. As of December 31,2023, we had all of our native staking activities with
MarsLand.

For the liquid staking business, the Company has
deployed ETH into Portara protocol (formerly known as Harbour) supported by liquid staking solution provider under the consortium of Blockdaemon
and Stakewise, and Liquid Collective protocol supported by Coinbase. By staking, we receive receipt tokens