Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 86

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 86
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 million,
salary and bonus expenses of $1.0 million, professional and consulting expenses of $2.6 million, directors and officers insurance expenses
of $0.2 million, marketing expenses of $0.3 million, and travel expenses of $0.2 million.

(Losses) gains on digital assets

For the three months ended March 31, 2025, a loss
of $49.2 million was recognized, primarily attributable to the decreases in the prices of bitcoin and ETH as of March 31, 2025.

For the three months ended March 31, 2024, a gain
of $45.7 million was recognized, primarily attributable to the increases in the prices of bitcoin and ETH held as of March 31, 2024. 

Income tax provisions

Provision for income taxes consists of federal,
state and foreign income taxes. Our income tax provision for the three months ended March 31, 2025 is primarily attributable to the mix
of earnings and losses in countries with differing statutory tax rates, and the valuation allowance applied to the Company’s deferred
tax assets in the United States, Singapore and Hong Kong. We continue to maintain a valuation allowance against the deferred tax assets
in United States, Singapore and Hong Kong as the Company does not expect those deferred tax assets are “more likely than not”
to be realized in the near future, particularly due to the uncertainty on macroeconomy, politics and profitability of the business.

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 during 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: 1) 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 during the three months ended March 31, 2025 compared to the same period in 2024
and 2) tax expense decreased by $1.6 million in Canada
due to its cease of business operation during the three months ended March 31, 2025 compared to the same period in 2024.

Net (loss) income and (loss) earnings per share

For the three months ended March 31, 2025, our
net