Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 162

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 162
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Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations.

The following discussion should be read in conjunction
with our interim Condensed Consolidated Financial Statements and the related notes and other financial information appearing elsewhere
in this Quarterly Report on Form 10-Q for the period ended June 30, 2025 as well as Management’s Discussion and Analysis of Financial
Condition and Results of Operations included in our Form 10-K for the year ended December 31, 2024 (“Form 10-K”).

Overview

Bit Digital, Inc. or the “Company”,
is a global platform for high performance computing (“HPC”) business including cloud services and HPC data center services
and digital asset business, including Etherum (ETH) staking business, with headquarters in New York City. On June 25, 2025, the Company
announced that it has initiated a strategic transition to become a pure play Ethereum staking and treasury company. The Company began
accumulating ETH and operating staking infrastructure in 2022 and has steadily increased its holdings since that time.

HPC Business

We believe we are a leading provider of artificial
intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide
cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application
and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation
services. Our cloud services support generative AI workstreams, especially training and inference.

Data centers

We design, develop, and operate data centers,
through which we offer our hosting and colocation services. Our operational data centers meet the requirements of the Tier-3 standard,
including N+1 redundancy architecture, concurrent maintainability, uninterruptible power supply, advanced and highly reliable cooling
systems, strict monitoring and management systems, SOC 2 Type 2, differentiated software supporting AI workloads, high density and robust
bandwidth, and infrastructure to support AI workloads.

On July 30, 2025, we entered into a Contribution
Agreement with WhiteFiber, pursuant to which we agreed to contribute our HPC business through the transfer of 100% of the capital shares
of our cloud services subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc., WhiteFiber Canada, Inc.,
WhiteFiber Japan G.K.