Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1889

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1889
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Digital assets

Digital assets primarily consist of BTC and ETH.
For the year ended December 31, 2024, we earned digital assets from mining services and ETH staking services. We exchanged BTC into ETH
or USDC, exchanged BTC and ETH into cash, or used BTC and ETH to pay certain operating costs and other expenses. Digital assets held are
accounted for as intangible assets measured at fair value, with changes in fair value recorded in net income in each reporting period.

As compared with the balance as of December 31,
2023, the balance of digital assets as of December 31, 2024 increased by $120.9 million, which was primarily attributable to the cumulative
effect of the adoption of ASU 2023-08 of $21.2 million, change in fair value of $56.4 million, and generation of bitcoins of $58.6 million
from our mining business, partially offset by exchange of bitcoins of $9.4 million into cash, exchange of bitcoins of $1.8 million into
USDC, and payment of bitcoin for service charges of $5.8 million.

Digital assets held in fund

Digital assets held in fund consists of an investment
made by the Company in Bit Digital Innovation Master Fund SPC Ltd and included in current assets in the consolidated balance sheets under
the caption “Digital assets held in Fund” as of June 30, 2024. On July 1, 2024, the Company disposed its BVI entities associated
with the previous fund operation (See Note 21, Disposition of Bit Digital Investment Management Limited and Bit Digital Innovation
Master Fund SPC Limited, for more information). As a result, the Company no longer consolidates the fund, and the investment is now
classified under investment securities as Investment in Innovation Fund. Refer to Note 10 – Investment Securities for more information.

As of December 31, 2024, the total balance of
this investment was $nil million, compared to $6.1 million as of December 31, 2023.

96

Loans Receivable

Loans receivable consist of a loan issued by the
Company to a third party. The total balance of loans receivable was $0.4 million and $0.4 million as of December 31, 2024 and December
31, 2023, respectively.

Net investment in lease

Net investment in lease represents the present
value of the lease payments not yet received from lessee