Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 29

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 29
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21 requires entities to measure the estimated fair value of noncash consideration at contract inception.
Because the consideration to which the Company expects to be entitled for providing computing power is entirely variable, as well as being
noncash consideration, the Company assesses the estimated amount of the variable noncash consideration at contract inception and subsequently,
to determine when and to what extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not
occur once the uncertainty associated with the variable consideration is subsequently resolved. Because it is probable that a significant
reversal of cumulative revenue will not occur and the Company is able to calculate the payout based on the contractual formula, this amount
should be estimated and recognized in revenue upon inception, which is when the hash rate is provided.

For reasons of operational practicality, the Company
applies an accounting convention to use the daily quoted closing U.S. dollar spot rate of digital asset each day to determine the fair
value of digital asset on the date received, which is not materially different than the fair value at contract inception or the time the
Company has earned the award from the pools.

Below table presents the Company’s revenues generated from digital
asset mining business from Foundry USA Pool by country:

    For the Three Months Ended March 31, 

    2025  
    2024 

    United States 
    $6,402,463  
    $19,311,884 
  
    Iceland 
     1,374,500  
     1,601,040 
  
    Canada 
     -  
     978,836 

    $7,776,963  
    $21,891,760 

ETH staking business  

The Company generates revenue through ETH staking
rewards. The Company commenced both native staking business and liquid staking business in 2022. In the first quarter of 2024, the Company
terminated its liquid staking business. Currently, the Company only participates in native staking.

With the introduction of staked ETH withdrawals
in April 2023, we have reassessed our Ethereum network staking approaches, weighing the advantages of traditional staking against liquid
staking solutions. The withdrawal feature in native staking, coupled with yields that are on par with those of liquid staking, has encouraged
us to expand our collaborations with other service providers in this domain. As a result, we have terminated all liquid staking activities
with StakeWise and