Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 116

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 116
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 30, 2025, electricity costs increased by $0.4 million, or 200%, compared to the electricity
costs incurred for the three months ended September 30, 2024. The increase primarily resulted from an increase in the number of
deployed GPU servers.

Data
center lease expenses. We entered into data center lease agreements for fixed monthly recurring costs.

For
the three months ended September 30, 2025, data center lease expenses increased by $0.4 million, or 35%, compared to the data
center lease expenses incurred for the three months ended September 30, 2024. The increase primarily resulted from one additional
data center lease entered after the third quarter of 2024.

GPU
servers lease expenses. We entered into a GPU servers lease agreement to support our cloud services. The lease payment depends
on the usage of the GPU servers.

For
the three months ended September 30, 2025, GPU servers lease expenses decreased by $0.4 million, or 11%. The decrease primarily
resulted from the application of a previously issued credit in connection with downtime that occurred in prior periods.

Cost
of revenue - Colocation Services

In
the fourth quarter of 2024, we acquired Enovum which provides colocation services. For the three months ended September 30, 2025 and
2024, the cost of revenue from colocation services was comprised of the following:

    For
    the Three Months Ended September 30, 

    2025  
    2024 

    Electricity costs 
    $288,797  
    $- 
  
    Lease expenses 
     166,114  
     - 
  
    Wage expenses 
     92,494  
     - 
  
    Other costs 
     127,542  
     - 
  
    Total 
    $674,947  
    $   - 

Electricity
costs. These expenses were closely correlated with the number of deployed servers hosted by the data center.

For
the three months ended September 30, 2025, electricity costs totaled $0.3 million. We had no electricity costs for the three months ended
September 30, 2024 as we acquired Enovum in the fourth quarter of 2024, which provides colocation services.

Lease
expenses. These expenses were incurred by the data center for