Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 229

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 229
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2024. The increase was primarily due to an increase in
deployed GPU servers to new and existing customers in the third quarter of 2025, offset by a $2.0 million service credit accrued
and expected to be issued to a customer under the terms of the contract.

Revenue
from colocation services

In
the fourth quarter of 2024, we acquired Enovum which holds our data center business that provides customers with physical space, power,
and cooling within data center facilities.

Our
revenue from colocation services was $1.7 million and $nil for the three months ended September 30, 2025 and 2024, respectively.

55

Revenue
from digital asset mining

We
provide computing power to digital asset mining pools, and receive consideration in the form of digital assets, the value of which is
determined using the market price of the related digital asset at the time of receipt. By providing computing power to successfully add
a block to the blockchain, the Company is entitled to a fractional share of the digital assets award from the mining pool operator, which
is based on the proportion of computing power the Company contributed to the mining pool to the total computing power contributed by
all mining pool participants in solving the current algorithm. 

For
the three months ended September 30, 2025, we received 64.9 bitcoins from the Foundry mining pool. As of September 30, 2025, our maximum
hash rate was at an aggregate of 2.8 EH/s for our bitcoin miners. For the three months ended September 30, 2025, we recognized revenue
of $7.4 million from bitcoin mining services.

For
the three months ended September 30, 2024, we received 165.4 bitcoins from the Foundry mining pool. As of September 30, 2024, our maximum
hash rate was at an aggregate of 4.3 EH/s for our bitcoin miners. For the three months ended September 30, 2024, we recognized revenue
of $10.1 million from bitcoin mining services.

Our
revenues from digital asset mining services decreased by $2.7 million, or 26.7%, to $7.4 million for the three months ended September
30, 2025 from $10.1 million for the three months ended September 30, 2024. The decrease was primarily due to a lower BTC generated from
our mining