Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 204

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 204
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 due to the
receipt of USDC from sales of other digital assets of $1.2 million and receipt of USDC from other income of $40,100, partially offset
by the payment of other expenses of $1.2 million.

Digital assets

Digital assets primarily consist of BTC and ETH.
For the three months ended June 30, 2025, we earned digital assets from mining services and ETH staking services. We exchanged BTC into
ETH or USDC, exchanged BTC and ETH into cash, or used BTC and ETH to pay certain operating costs and other expenses. Digital assets held
are accounted for as intangible assets measured at fair value, with changes in fair value recorded in net income in each reporting period.

As compared with the balance as of December 31,
2024, the balance of digital assets as of June 30, 2025 decreased by $70.2 million, which was primarily attributable to exchange of bitcoins
of $54.0 million into cash, exchange of bitcoins of $1.2 million into USDC, payment of ETH to investment fund of $7.0 million, and change
in fair value of $22.0 million, partially offset by the generation of bitcoins of $14.4 million from our mining business.

Loans Receivable

Loans receivable consist of a loan issued by the
Company to a third party. The total balance of loans receivable was $0.4 million and $0.4 million as of June 30, 2025 and December 31,
2024, respectively.

Net investment in lease

Net investment in lease represents the present
value of the lease payments not yet received from lessee. The current and non-current balance of net investment in lease was $3.5 million
and $9.4 million, respectively as of June 30, 2025. The current and non-current balance of net investment in lease was $2.5 million and
$6.8 million, respectively as of December 31, 2024.

Deposits for property, plant, and equipment

The deposits for property, plant, and equipment
consists of advance payments for property, plant, and equipment. The balance was derecognized once the control of the property, plant,
and equipment was transferred to and obtained by us.

Compared with December 31, 2024, the balance as
of June 30, 2025 decreased $18.0 million, mainly due to the