Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 2137

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 2137
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, embedded conversion or other features are not required to be separated from the
host instrument. Issuance costs related to convertible securities carried at fair value are not deferred and are recognized as incurred
on the Consolidated Statements of Operations. For the year ended December 31, 2024, the Company did not record upward adjustments or downward
adjustments on the investments.

(g) Investment in AI Innovation Fund I (“AI
fund”)

On July 15, 2024, the Company entered into a subscription
agreement with Pleasanton Ventures Innovation Master Fund SPC Limited for investment of $15.9 million in its AI Innovation Fund I. The
investment includes a direct investment into private equity and fund of fund opportunities within the AI industry.

As a practical expedient, the Company uses Net
Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund. As of December 31, 2024, the
Company recorded cumulative downward adjustments of $100,000 on the investment.

(h) Investment in Innovation Fund I (“Innovation
fund”)

After the Company disposed its BVI entities for
its previous fund operation (See Note 21, Disposition of Bit Digital Investment Management Limited and Bit Digital Innovation Master
Fund SPC Limited, for more information), the Company no longer consolidates the investment in the fund. As a practical expedient,
the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund. For the
years ended December 31, 2024, the Company recorded cumulative upward adjustments of $2,550,904 on the investment.

(i) Investment in MarsProtocol Technologies
Pte. Ltd. 

On March 1, 2023, Bit Digital Singapore Pte. Ltd.
and Saving Digital Pte. Ltd. (“SDP”), a wholly owned subsidiary of Mega Matrix Corp., entered into a shareholders’ agreement
with MarsProtocol Technologies Pte. Ltd. (“MarsProtocol”). MarsProtocol provides staking technology tools in digital assets
through the staking platform.

The Company invested $88,994 which represents a 40% equity interest
in MarsProtocol. The Company used the equity method to measure the investment in MarsProtocol. In August 2023, the Company divested its
stake in MarsProtocol for consideration of $89,519 and recognized a gain of $8,220.  

11. OTHER NON-CURRENT ASSETS

Other non-current assets were