Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 653

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 653
---
,240,138 
  
    Receipt of ETH from native staking business 
     1,705,857 
  
    Receipt of ETH from liquid staking business 
     4,503 
  
    Receipt of ETH from exchange of other digital assets 
     128,960 
  
    Receipt of ETH from other income 
     200 
  
    Payment of ETH for other expenses 
     (21,704)
  
    Change in fair value of ETH 
     15,510,056 
  
    ETH fair value at December 31, 2024 
    $92,057,613 

For the
additions of ETH generated by the Company’s ETH staking business, see Note 3. Revenue from Contracts with Customers.

ETH is sold
on a FIFO basis. For the year ended December 31, 2024, gains from the sales of ETH are included in change in fair value of ETH which is
included in the consolidated statements of operations under the caption “Gains on digital assets”.

F-25

Prior to Adoption of ASU 2023-08, Accounting
for and Disclosure of Crypto Assets

Prior to the adoption of ASU 2023-08, digital
assets were accounted for as indefinite-lived intangible assets and were initially measured in accordance with ASC 350 - Intangible-Goodwill
and Other. Digital assets were not amortized, but were assessed for impairment annually, or more frequently, when events or changes
in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the
exchange-traded price of digital assets declined below its carrying value, the Company was required to determine if an impairment existed
and to record an impairment equal to the amount by which the carrying value exceeded the fair value.

The following table presents a roll-forward of
BTC for the year ended December 31, 2023, based on the cost-impairment model under ASC 350:

    For the 
Year Ended December 31, 

    2023 
  
    Opening balance 
    $15,796,147 
  
    Receipt of BTC from mining services 
     44,240,418 
  
    Receipt of BTC from other income 
     140,724 
  
    Sales of BTC in exchange of cash 
     (4,679,714)
  
    Sales of BTC in exchange of ETH 
     (11,756,006)
  
    Sales of