Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 41

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 41
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 period beginning 00:00:00 UTC and ending 23:59:59 on a daily basis. In exchange for providing computing
power, the Company is entitled to a fractional share of the fixed digital assets award the mining pool operator receives, for successfully
adding a block to the blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed
to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm.
The Company is entitled to its relative share of consideration even if a block is not successfully placed.

The
transaction consideration the Company receives, if any, is noncash consideration in the form of digital assets, net of pool fees charged
by the mining pool operator. The Company estimates the fair value of noncash consideration at contract inception. This non-cash consideration
is variable since the amount of block reward earned depends on the Company’s hash rate provided and transaction fees depend on
the actual Bitcoin Network transaction fees. While the non-cash consideration is variable, the payout is settled the next day on a daily
basis and the Company has the ability to estimate the variable consideration with reasonable certainty, without the risk of significant
revenue reversal because it is probable that a significant reversal in the amount of revenue recognized from the contract will not occur
when the uncertainty is subsequently resolved.

Revenue
is recognized on the same day that control of the contracted service transfers to the mining pool operator, which is the same day as
contract inception. Revenue is estimated and recognized based on the spot price of Bitcoin determined using the Company’s Principal
Market at 0:00:00 UTC on the date of contract inception.

Below
table presents the Company’s revenues generated from digital asset mining business from Foundry USA Pool by country:

    For
    the Three Months Ended  September 30,  
    For
    the Nine Months Ended  September 30, 

    2025  
    2024  
    2025  
    2024 
  
    United States 
    $      5,821,711  
    $8,951,079  
    $17,441,125  
    $42,448,768 
  
    Iceland 
     1,593,991  
     879,626  
     4,383,378  
     3,691,176 
  
    Canada 
     -  
     279,516