Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 50

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 50
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627 

The Company did not identify any impairment of
its finite-lived intangible assets during the three months ended March 31, 2025.

15. INCOME TAXES

The following table provides details of income
taxes:

    For the Three Months Ended March 31, 

    2025  
    2024 
  
    (Loss) income before income taxes 
    $(57,039,929) 
    $51,659,207 
  
    Provision for income taxes 
    $671,716  
    $1,577,350 
  
    Effective tax rate 
     (1.2)% 
     3.1%

Our income tax provision was $0.7 million and
$1.6 million for the three months ended March 31, 2025 and 2024, respectively. The income tax provision was lower for the three months
ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the impact of the following items:

●Tax Expense increased by $0.5 million and $0.3 million in Iceland and the
United States due to their higher profitability from business operational results for the three months ended March 31, 2025 compared to
the same period in 2024.

●Tax Expense decreased by $1.6 million in Canada
due to its cease of business operations for the three months ended March 31, 2025 compared to the same period in 2024.

Our future effective income tax rate depends
on various factors, such as tax legislation, the geographic composition of our pre-tax income, the amount of our pre-tax income as business
activities fluctuate, non-deductible expenses, non-taxable book gain in certain jurisdictions, change of valuation allowance and the
effectiveness of our tax planning strategies. We also continue to monitor the adoption of Pillar Two relating to the global minimum tax
in each of our tax jurisdictions to evaluate its impact on our effective income tax rate. For the three months ended March 31, 2025,
the Company is not subject to Pillar Two global minimum tax.

16. (LOSS) EARNING PER SHARE

    For the Three Months Ended March 31, 

    2025  
    2024 
  
    Net (loss) income 
    $(57,711,645) 
    $50,081,857 
  
    Weighted average number of