Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1753

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 5
Chunk 1753
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 periods beginning after December 15, 2024; early adoption
is permitted. The Company is closely monitoring the development of the ASU 2023-09 and does not expect its impact to be material on the
consolidated financial statements.

F-18

In December 2024, the FASB issued ASU 2024-03,
Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”).
ASU 2024-03 requires, in the notes to the financial statements, disclosures of specified information about certain costs and expenses
specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim
reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the updated guidance
will have on its disclosures.

3. Revenue from Contracts with Customers

The Company recognizes revenue in accordance with
ASC 606, Revenue from Contracts with Customers (“ASC 606”).

To determine revenue recognition for contracts
with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance
obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable
that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations
in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company recognizes revenue when it transfers
its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.

The Company is currently engaged in digital asset
mining business, high performance computing (“HPC”) business, including cloud services and HPC data center services, and Ethereum
staking activities.

Disaggregation of revenues

Revenue disaggregated by reportable segment is presented in Note 17,
Segment Reporting.

Cloud services

The Company provides cloud services to support
customers’ generative AI workstreams. We have determined that cloud services are a single continuous service comprised of a series
of distinct services that are substantially the same and have the same pattern of transfer (i.e. distinct days of service).

These services are consumed as they are received,
and the Company recognizes revenue over time using the variable allocation exception as it satisfies performance