Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1136

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1136
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281) 
     42,199,091 

84

Revenue

We generate revenues from cloud services, colocation
services, digital asset mining, and ETH staking businesses.

Revenue from cloud services

In the fourth quarter of 2023, we initiated WhiteFiber
AI, a new business line to provide cloud services to support generative AI workstreams. The Company commenced the cloud services in January
2024.

Our revenue from cloud services was $45.7 million for
the year ended December 31, 2024. During the three months ended March 31, 2024, the Company issued a service credit of $1.3 million to
the customer as compensation for decreased utilization during the initial deployment period, which included testing and optimization phases.
The Company issued another service credit of $0.6 million to the customer during the three months ended September 30, 2024, as compensation
for decreased utilization.

Revenue from colocation services

In the fourth quarter of 2024, we acquired Enovum which provides customers
with physical space, power, cooling within the data center facility.

Our revenue from colocation services was $1.4
million for the year ended December 31, 2024.

Revenue from digital asset mining

We provide computing power to digital asset mining
pools, and receive consideration in the form of digital assets, the value of which is determined using the market price of the related
digital asset at the time of receipt. By providing computing power to successfully add a block to the blockchain, the Company is entitled
to a fractional share of the digital assets award from the mining pool operator, which is based on the proportion of computing power the
Company contributed to the mining pool to the total computing power contributed by all mining pool participants in solving the current
algorithm.

For the year ended December 31, 2024, we received
949.9 bitcoins from the Foundry USA Pool (“Foundry”) mining pool. As of December 31, 2024, our maximum hash rate was at an
aggregate of 2.6 EH/s for our bitcoin miners. For the year ended December 31, 2024, we recognized revenue of $58.6 million from bitcoin
mining services.

For the year ended December 31, 2023, we received
1,507.3 bitcoins from Foundry USA Pool (“Foundry”) mining pool. As of December 31, 2023, our