Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 53

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 53
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 of $150,000 on the investment. 

29

(h) Investment in Innovation Fund I (“Innovation fund”)

After the Company disposed its BVI entities for
its previous fund operation (See Note 20. Disposition of Bit Digital Investment Management Limited and Bit Digital Innovation Master
Fund Spc Limited for more information), the Company no longer consolidates the investment in the fund. As a practical expedient, the
Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund.

On March 25, 2025, the Company invested an additional
3,400 ETH, equivalent to approximately $7.0 million into the fund. For the three months ended June 30, 2025 and 2024, the Company recorded
cumulative upward adjustments of $3,917,951 and $331,625, respectively, on the investment. For the six months ended June 30, 2025 and
2024, the Company recorded cumulative downward adjustments of $623,477 and downward adjustment of $2,676,237, respectively, on the investment.

11. OTHER NON-CURRENT ASSETS

Other non-current assets were comprised of the
following:

    June 30,  2025  
    December 31, 2024 
  
    Deposits (a) 
    $6,249,881  
    $7,103,560 
  
    Deferred contract costs 
     491,020  
     982,039 
  
    Contract assets 
     538,214  
     - 
  
    Others 
     786,234  
     1,494,285 
  
    Total 
    $8,065,349  
    $9,579,884 

  (a) As of June 30, 2025 and December 31, 2024, the balance of deposits
primarily consisted of the deposits made to utility company related to our colocation services and to our service providers who paid utility
charges in mining facilities on behalf of the Company. The deposits are refundable upon expiration of the agreement. 

12. SHARE-BASED COMPENSATION

Share-based compensation such as restricted stock
units (“RSUs”), incentive and non-statutory stock options, restricted shares, share appreciation rights and share payments
may be granted to any directors, employees and consultants of the Company or affiliated companies under the 2021 Omnibus Equity