Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 60

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 60
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against the investment security.

(b) Investment
in Nine Blocks Offshore Feeder Fund (“Nine Blocks”)

On
August 1, 2022, the Company entered into a subscription agreement with Nine Blocks for investment of $2.0 million. The investment includes
a direct investment into the Nine Blocks Master Fund, a digital assets market neutral fund using basis trading, relative value,
and special situations strategies.

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. For the three months ended September 30, 2025 and 2024, the Company recorded cumulative upward adjustments of $102,359 and
cumulative upward adjustments of $18,811, respectively, on the investment. For the nine months ended September 30, 2025 and 2024, the
Company recorded cumulative upward adjustments of $264 and cumulative upward adjustments of $556,308, respectively, on the investment.

(c) Investment
in Auros Global Limited (“Auros”)

On
February 24, 2023, the Company closed an investment of $1,999,987 in Auros, which is a leading crypto-native algorithmic trading and
market making firm that delivers best-in-class liquidity for exchanges and token projects. The Company neither has control nor significant
influence through investment in ordinary shares. The Company accounted for the investment in Auros using the measurement alternative
at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions for identical
or similar investments of the same issuer.

For
the three and nine months ended September 30, 2025 and 2024, the Company did not record upward adjustments or downward adjustments on
the investment. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant
effect on the fair value of the equity security. As of September 30, 2025 and December 31, 2024, the Company did not recognize impairment
against the investment security.

(d) Investment
in Ingonyama Ltd. (“Ingonyama”)

In
September 2023, the Company closed an investment of $100,000 in Ingonyama, a semiconductor company focusing on Zero Knowledge Proof hardware
acceleration. The Company neither has control nor significant influence through investment in preferred shares. The Company accounted
for the investment in Ingonyama using the measurement alternative at cost, less