Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 305

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 305
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 financial instrument; one USDC can be redeemed for one U.S. dollar on demand from the issuer. The balance of USDC was $0.4 million
and $0.4 million as of December 31, 2024 and December 31, 2023, respectively. The small increase in the balance of USDC was primarily
due to receipt of USDC of $2.4 million from sales of other digital assets, partially offset by the payment of USDC for other expenses
of $2.3 million, and payment of USDC for service charges from mining facilities of $0.1 million. 

Digital assets

Digital assets primarily consist of BTC and ETH.
For the year ended December 31, 2024, we earned digital assets from mining services and ETH staking services. We exchanged BTC into ETH
or USDC, exchanged BTC and ETH into cash, or used BTC and ETH to pay certain operating costs and other expenses. Digital assets held are
accounted for as intangible assets measured at fair value, with changes in fair value recorded in net income in each reporting period.

As compared with the balance as of December 31,
2023, the balance of digital assets as of December 31, 2024 increased by $120.9 million, which was primarily attributable to the cumulative
effect of the adoption of ASU 2023-08 of $21.2 million, change in fair value of $56.4 million, and generation of bitcoins of $58.6 million
from our mining business, partially offset by exchange of bitcoins of $9.4 million into cash, exchange of bitcoins of $1.8 million into
USDC, and payment of bitcoin for service charges of $5.8 million.

Digital assets held in fund

Digital assets held in fund consists of an investment
made by the Company in Bit Digital Innovation Master Fund SPC Ltd and included in current assets in the consolidated balance sheets under
the caption “Digital assets held in Fund” as of June 30, 2024. On July 1, 2024, the Company disposed its BVI entities associated
with the previous fund operation (See Note 21, Disposition of Bit Digital Investment Management Limited and Bit Digital Innovation
Master Fund SPC Limited, for more information). As a result, the Company no longer consolidates the fund, and the investment is now
classified under investment securities as Investment in Innovation Fund. Refer to Note 10 – Investment Securities for more