Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 215

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 215
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news for successive one-month periods unless terminated by either party. Deployment and revenue generation is scheduled to begin on
December 1, 2025. 

Digital
Asset Business

The
digital asset business is comprised primarily of two distinct but highly complementary operations: (i) digital asset mining (the “Digital
Asset Mining Operations”); and (ii) ETH staking (the “ETH Staking Operations”).

In
June 2025, the Company announced that it had initiated a strategic transition to become a pure play ETH staking and treasury company.
In connection with the transition, the Company intends to convert its BTC holdings into ETH over time and has commenced a strategic
alternatives process for its bitcoin mining operations, which is expected to result in a sale or wind-down, with any net proceeds
to be re-deployed into ETH.

Digital
Asset Mining Business

We
commenced our bitcoin (“BTC”) mining business in February 2020. We initiated limited Ethereum mining operations in January
2022, however discontinued the operations by September 2022 due to Ethereum blockchain switching from proof-of-work (“PoW”)
consensus mechanism to proof-of-stake (“PoS”) validation. Our mining operations, hosted by third-party providers, use specialized
computers, known as miners, to generate digital assets. Our miners use application specific integrated circuit (“ASIC”) chips.
These chips enable the miners to apply high computational power, expressed as “hash rate”, to provide transaction verification
services (generally known as “solving a block”) which helps support the blockchain. For every block added, the blockchain
provides an award equal to a set number of digital assets per block. Miners with a greater hash rate generally have a higher chance of
solving a block and receiving an award.

We
operate our mining assets with the primary intent of accumulating digital assets which we may sell for fiat currency from time to time
depending on market conditions and management’s determination of our cash flow needs, and/or exchange into ETH or USD Coin (“USDC”).
Our mining strategy has been to mine bitcoins as quickly and as many as possible given the fixed supply of bitcoins. In view of historically
long delivery lead times to purchase miners from manufacturers like Bitmain Technologies Limited (“Bitmain”) and MicroBT
Electronics Technology Co., Ltd (“MicroBT”), and other considerations, we have chosen to acquire miners on the spot market,
which can typically result in delivery within a relatively short time