Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 16

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 16
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 shares of its cloud services subsidiary, WhiteFiber AI, Inc.
and its wholly-owned subsidiaries WhiteFiber HPC, Inc., WhiteFiber Canada, Inc., WhiteFiber Japan G.K. and WhiteFiber Iceland, ehf, to
WhiteFiber in exchange for 27,043,749 ordinary shares of WhiteFiber (see Note 18. Related Parties).

6

2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

Basis of presentation and principles of
consolidation

The interim unaudited condensed consolidated financial
statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“US GAAP”).

The unaudited condensed consolidated financial
information as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 has been prepared without audit, pursuant
to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally
included in annual financial statements prepared in accordance with US GAAP, have been omitted pursuant to those rules and regulations.
The unaudited interim financial information should be read in conjunction with the audited financial statements and the notes thereto,
included in the Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on March 14, 2025.

In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results
for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading.
The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in
the preparation of the Company’s consolidated financial statements for the year ended December 31, 2024. The results of operations
for the three and six months ended June 30, 2025, and 2024 are not necessarily indicative of the results for the full years.

Use of estimates

In preparing the consolidated financial statements
in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant
estimates required to be