Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1508

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 4
Chunk 1508
---
,
the cost of revenue from colocation services was comprised of the following:

    For the Years Ended December 31, 

    2024  
    2023 

    Electricity costs 
    $188,559  
    $- 
  
    Lease expenses 
     149,260  
     - 
  
    Other costs 
     152,682  
     - 
  
    Total 
    $490,501  
    $- 

Electricity costs. These expenses were
closely correlated with the number of deployed servers hosted by the data center.

For the year ended December 31, 2024 and 2023,
electricity costs totaled $0.2 million and $nil, respectively.

Lease expenses. These expenses were
incurred by the data center for lease agreement for a fixed monthly recurring cost.

For the year ended December 31, 2024 and 2023,
data center lease expenses totaled $0.1 million and $nil, respectively.

Cost of revenue - digital asset mining

For the years ended December 31, 2024 and 2023,
the cost of revenue from digital asset mining was comprised of the following:

    For the Years Ended December 31, 

    2024  
    2023 

    Electricity costs 
    $30,598,881  
    $22,277,038 
  
    Profit-sharing fees 
     9,175,239  
     5,902,205 
  
    Other costs 
     2,532,892  
     1,326,540 
  
    Total 
    $42,307,012  
    $29,505,783 

Electricity costs. These expenses
were incurred by mining facilities for the miners in operation and were closely correlated with the number of deployed miners.

For the year ended December 31, 2024, electricity
costs increased by $8.3 million, or 37%, compared to the electricity costs incurred for the year ended December 31, 2023. The increase
primarily resulted from an increase in the number of deployed miners.

Profit-sharing fees. We enter into
hosting agreements with certain mining facilities, which included performance fees calculated as a fixed percentage of net profit generated
by the miners. We refer to these fees as profit-sharing fees.

For the year ended December 31, 2024, profit-sharing
fees