Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1332

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1332
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 for the ETH staked which could
be redeemed to ETH or can be traded or collateralized elsewhere, at any time. In addition, we receive rETH-H for rewards earned from Portara
protocol. With the introduction of staked ETH withdrawals in April 2023, we have reassessed our Ethereum network staking approaches, weighing
the advantages of traditional staking against liquid staking solutions. The withdrawal feature in native staking, coupled with yields
that are on par with those of liquid staking, has encouraged us to expand our collaborations with other service providers in this domain.
As a result, we terminated all liquid staking activities with StakeWise in the third quarter of 2023, reclaiming all staked Ethereum along
with the accumulated rewards. As of December 31,2023, we had all of our liquid staking activities with Liquid Collective protocol which
began in the first quarter of 2023.

For the year ended December 31, 2023, we earned
287.0 ETH in native staking and 81.9 ETH/rETH-h in liquid staking, respectively. For the year ended December 31, 2023, we recognized revenues
of $531,702 and $144,011 from native staking and liquid staking, respectively.

For the year ended December 31, 2022, we earned
3.7 ETH in native staking and 16.2 rETH-h in liquid staking, respectively. For the year ended December 31, 2022, we recognized revenues
of $5,722 and $20,182 from native staking and liquid staking, respectively.

Our revenues from ETH staking increased by $0.6
million or 2,508.5%, to $0.7 million for the year ended December 31, 2023 from $25,904 for the year ended December 31, 2022. The increase
was primarily due to an increase of 349.0 ETH earned from staking services partially offset by a decrease in the average price of ETH
for the year ended December 31, 2023 compared to the year ended December 31, 2022.

92

Cost of revenue

The Company’s cost of revenue consists primarily
of i) direct production costs related to mining operations, including electricity costs, profit-sharing fees and other relevant costs,
but excluding depreciation and amortization, which are separately stated in the Company’s consolidated statements of operations,