Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1211

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1211
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Adoption of ASU 2023-08, Accounting for and
Disclosure of Crypto Assets

Effective January 1, 2024, the Company early adopted
ASU 2023-08, which requires entities to measure crypto assets at fair value with changes recognized in net income each reporting period.
The Company’s digital assets are within the scope of ASU 2023-08 and the transition guidance requires a cumulative-effect adjustment
as of the beginning of the current fiscal year for any difference between the carrying amount of the Company’s digital assets and
fair value. As a result of the Company’s early adoption of ASU 2023-08, the Company recorded a $21.2 million increase to digital
assets and a $21.2 million decrease to accumulated deficit on the consolidated balance sheets as of the beginning of the quarter ended
March 31, 2024.

F-24

The following table presents the Company’s
significant digital assets holdings as of December 31, 2024:

     Quantity   Cost Basis   Fair Value   BTC   741.9   $43,935,614   $69,319,731   ETH   27,623.2    68,076,105    92,057,613   Total digital assets held as 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