Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1903

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1903
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 in Note 4 to the financial statements,
the Company completed an acquisition of an operational data center. The Company accounted for this transaction under the acquisition method
for business combinations. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their
respective fair values, including identified property, plant and equipment, operating lease right-of-use assets and customer relationship
related intangible assets.

We identified goodwill valuation as a critical
audit matter because of the significant estimates and assumptions made by management in the process.

The procedures we performed to address this critical
audit matter included the following:

●We tested the effectiveness of controls over the fair value
estimate of the identifiable goodwill valuation, including management’s review of the valuation models, as well as the significant
assumptions used in the valuation models, such as future cash flows.

●With the assistance of fair value specialists, we evaluated
the reasonableness of the valuation methodology and significant unobservable inputs and assumptions by: 1) Testing the source information
underlying the determination of certain significant unobservable inputs and assumptions; and 2) Testing the mathematical accuracy of
the calculations.

/s/ Audit Alliance LLP

We have served as the Company’s auditor
since 2020.

Singapore,

March 14, 2025

PCAOB ID No. 3487

F-3

BIT DIGITAL, INC.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2024 and December 31, 2023

(Expressed in US dollars, except for the number
of shares)

    December 31,  
    December 31, 

    2024  
    2023 
  
    ASSETS 

    Current Assets 

    Cash and cash equivalents 
    $95,201,335  
    $16,860,934 
  
    Restricted cash 
     3,732,792  
     1,320,000 
  
    Accounts receivable 
     5,267,863  
     - 
  
    USDC 
     411,413  
     405,596 
  
    Digital assets 
     161,377,344  
     40,456,083 
  
    Digital assets held in fund 
     -  
     6,115,538 
  
    Net investment in lease - current 
     2,546,519  
     - 
  
    Other current assets