Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 151

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 151
---
 Company’s cost of revenue consists primarily
of direct production costs associated with its core operations, excluding depreciation and amortization, which are separately stated in
the Company’s consolidated statements of operations. Specifically, these costs consist of:

i.cloud services operations - electricity costs, datacenter lease expense, GPU servers lease expense, and
other relevant costs

ii.colocation services - electricity costs, lease costs and other relevant costs

iii.mining operations - electricity costs, profit-sharing fees and other relevant costs

iv.ETH staking business - service fee and reward-sharing fees to the service providers.

43

Cost of revenue - cloud services

For the three months ended March 31, 2025 and
2024, the cost of revenue from cloud services was comprised of the following:

    For the Three Months Ended March 31, 

    2025  
    2024 

    Electricity costs 
    $569,937  
    $83,378 
  
    Datacenter lease expenses 
     1,274,054  
     700,890 
  
    GPU servers lease expenses 
     3,747,386  
     2,082,179 
  
    Other costs 
     496,623  
     290,880 
  
    Total 
    $6,088,000  
    $3,157,327 

Electricity costs. These expenses
were incurred by the data center for the high performance computing equipment and were closely correlated with the number of deployed
GPU servers.

For the three months ended March 31, 2025, electricity
costs increased by $0.5 million, or 584%, compared to the electricity costs incurred for the three months ended March 31, 2024. The increase
primarily resulted from an increase in the number of deployed GPU servers.

Datacenter lease expenses. We entered
into datacenter lease agreements for fixed monthly recurring costs.

For the three months ended March 31, 2025, datacenter
lease expenses increased by $0.6 million, or 82%, compared to the datacenter lease expenses incurred for the three months ended March
31, 2024. The increase primarily resulted from two additional datacenter leases entered after the first quarter of 2024.

GPU servers lease expenses. We entered
into a GPU servers lease agreement to support our cloud services. The lease payment depends on the usage of the GPU servers.

For the three months ended March 31,