Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1579

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 4
Chunk 1579
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 of December 31, 2024       $112,011,719   $161,377,344  

The cost basis is equal to the post-impairment
value of all BTC and ETH held as of the adoption of ASU 2023-08 on January 1, 2024. For BTC and ETH earned subsequent to the adoption
of ASU 2023-08, the cost basis of the BTC and ETH represents the valuation at the time the Company determined for revenue recognition
purposes.

The following table presents a roll-forward of
BTC for the year ended December 31, 2024, based on the fair value model under ASU 2023-08:

    Fair value 
  
    BTC as of December 31, 2023 
    $19,818,980 
  
    Cumulative effect of the adoption of ASU 2023-08 
     7,341,319 
  
    Receipt of BTC from mining services 
     58,591,608 
  
    Sales of BTC in exchange of cash 
     (9,370,000)
  
    Sales of BTC in exchange of ETH 
     (40,267,700)
  
    Sales of BTC in exchange of USDC 
     (1,787,535)
  
    Payment of BTC for service charges from mining facilities 
     (5,754,049)
  
    Payment of BTC for other expenses 
     (192,809)
  
    Change in fair value of BTC 
     40,939,917 
  
    BTC as of December 31, 2024 
    $69,319,731 

For the
additions of BTC generated by the Company’s mining business, see Note 3. Revenue from Contracts with Customers.

Bitcoin
is sold on a FIFO basis. For the year ended December 31, 2024, gains from the sales of bitcoin are included in change in fair value of
BTC which is included in the consolidated statements of operations under the caption “Gains on digital assets”.

The following table presents a roll-forward of
ETH for the year ended December 31, 2024, based on the fair value model under ASU 2023-08:

    Fair value 
  
    ETH as of December 31, 2023 
    $20,637,103 
  
    Cumulative effect of the adoption of ASU 2023-08 
     13