Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1922

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1922
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 withdrawal. 

USDC

USD Coin
(“USDC”) is accounted for as a financial instrument that can be redeemed one USDC for one U.S. dollar on demand from the issuer.
While not accounted for as cash or cash equivalents, we treat our USDC holdings as a liquidity resource.

Accounts
Receivable

Accounts
receivable consist of amounts due from our customers. Receivables are recorded at the invoiced amount less an allowance for any potentially
uncollectable accounts under the current expected credit loss (“CECL”) impairment model and presents the net amount of the
financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over
the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events
and current conditions. In accordance with ASC 326, Measurement of Credit Losses on Financial Instruments (“ASC 326”), the
Company evaluates the collectability of outstanding accounts receivable balances to determine an allowance for credit loss that reflects
its best estimate of the lifetime expected credit losses. Uncollectible accounts are written off against the allowance when collection
does not appear probable.

Due to the
short-term nature of the Company’s accounts receivable, the estimate of expected credit loss is based on the aging of accounts using
an aging schedule as of period ends. In determining the amount of the allowance for credit losses, the Company considers historical collection
history based on past due status, the current aging of receivables, customer-specific credit risk factors including their current financial
condition, current market conditions, and probable future economic conditions which inform adjustments to historical loss patterns.

As of December
31, 2024, the allowance for credit loss has not been material to the consolidated financial statements.

Digital assets

Digital assets (primarily include bitcoin and
ETH) are included in current assets in the accompanying consolidated balance sheets. Digital assets purchased are recorded at cost and
digital assets awarded to the Company through its mining activities and staking activities are accounted for in accordance with the Company’s
revenue recognition policy disclosed below.

Effective January 1, 2024, the Company early adopted
ASU 2023-08, which requires entities to measure certain cryptocurrencies at fair value, with changes in fair value recorded in net
income in each reporting period. The Company’s digital assets are within the scope of ASU 2023-08 and the transition guidance requires
a cumulative-effect adjustment as of the beginning of the