Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 153

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 153
---
costs decreased by $3.9 million, or 48%, compared to the electricity costs incurred for the three months ended March 31, 2024. The decrease
primarily resulted from a decrease in the number of deployed miners.

Profit-sharing fees. We enter into
hosting agreements with certain mining facilities, which included performance fees calculated as a fixed percentage of net profit generated
by the miners. We refer to these fees as profit-sharing fees.

For the three months ended March 31, 2025, profit-sharing
fees decreased by $3.1 million, or 72%, compared to profit-sharing fees incurred in the three months ended March 31, 2024. The decrease
in profit-sharing fees was primarily due to a lower bitcoin production and partially offset by the higher average BTC price for three
months ended March 31, 2025.

We expect a proportionate increase in the cost
of revenue as we continue to focus on the expansion and upgrade of our miner fleet.

Cost of revenue - ETH staking business

For the three months ended March 31, 2025, cost
of revenue from ETH staking business increased by $16,135, or 98%, compared to the cost of revenue incurred for the three months ended
March 31, 2024. The increase was primarily driven by an increased number of staked ETH from 3,008 ETH in the three months ended March
31, 2024 to 21,568 ETH in the three months ended March 31, 2025.

Depreciation and amortization expenses

For the three months ended March 31, 2025 and
2024, depreciation and amortization expenses were $7.2 million and $6.8 million, respectively based on an estimated useful life of property,
plant, and equipment.

Effective January 1, 2025, we changed our estimate
of the useful lives for our cloud service equipment from three to five years. The change was made to better reflect the expected usage
patterns and economic benefits of the assets. Refer to Note 2. Summary of Significant Accounting Policies.

45

General and administrative expenses 

For the three months ended March 31, 2025, our
general and administrative expenses, totaling $8.2 million, were primarily comprised of shared-based compensation expenses of $0.3 million,
salary and bonus expenses of $1.5 million, professional and consulting expenses of $4.3 million, directors and officers