Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1964

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1964
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 agreement contains an explicit number of shares and there are no cash payment provisions.

The fair value of the warrants was estimated at
$33.3 million using the Black-Scholes model. Inherent in these valuations are assumptions related to expected stock-price volatility,
expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical
and implied volatilities of selected peer companies as well as its own that match the expected remaining life of the warrants. The risk-free
interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining
life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend
rate is based on the historical rate, which the Company anticipates it to remain at zero.

The following table provides quantitative information
regarding Level 3 fair value measurements inputs for the Company’s warrants at their measurement dates:

    As of October 4, 2021 

    Volatility 
     192.85%
  
    Stock price 
     7.59 
  
    Expected life of the warrants to convert 
     3.81 
  
    Risk free rate 
     0.97%
  
    Dividend yield 
     0.0%

14. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The components of goodwill as of December 31,
2024 are as follows:

    As of 
December 31, 
2024 

    Enovum Data Centers Corp. 
     19,383,291 
  
    Total goodwill 
     19,383,291 

The Company recorded goodwill in the amount of
$19.3 million in connection with its acquisition of the Enovum Data Centers Corp. (“Enovum”) on October 11, 2024. Refer to
Note 4. Acquisitions for further information.

Finite-lived intangible assets

In addition to goodwill, in connection with the
acquisition of Enovum, the Company recorded an identified intangible asset, customer relationships, with a definite useful life of 19
years in the amount of $13.2 million. Refer to Note 4. Acquisitions for further information.

F-37

The following table presents the Company’s
finite-lived intangible assets as of December 31, 2024:

    As of December
    31, 202