Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 2056

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 2056
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%, compared to the cost of revenue incurred for the year ended December 31,
2023. The increase primarily resulted from increased service costs due to the increased number of staked ETH.

88

Depreciation and amortization expenses

For the years ended December 31, 2024 and 2023,
depreciation and amortization expenses were $32.3 million and $14.4 million, respectively based on an estimated useful life of property,
plant, and equipment as discussed in Note 2. Summary of Significant Accounting Policies.

General and administrative expenses 

For the year ended December 31, 2024, our general
and administrative expenses, totaling $41.5 million, were primarily comprised of shared-based compensation expenses of $9.9 million, salary
and bonus expenses of $9.8 million, professional and consulting expenses of $13.5 million, directors and officers insurance expenses of
$0.9 million, marketing expenses of $1.8 million, and travel expenses of $1.0 million.

For the year ended December 31, 2023, our general
and administrative expenses, totaling $27.7 million, were primarily comprised of shared-based compensation expenses of $9.1 million, salary
and bonus expenses of $5.5 million, professional and consulting expenses of $5.4 million, directors and officers insurance expenses of
$1.7 million, marketing expenses of $1.2 million, travel expenses of $0.8 million, and transportation expenses of $0.2 million to relocate
miners.

Gains (losses) on digital assets

For the year ended December 31, 2024, a gain of
$55.7 million was recognized, primarily attributable to the increases in the prices of bitcoin and ETH as of December 31, 2024.

As a result of the adoption of ASU 2023-08 effective
January 1, 2024, digital assets are recorded at fair value, changes in fair value are recognized as part of net income. As described under
the heading “Realized gain on exchange of digital assets”, gains on digital assets for the year ended December 31,
2024 are not comparable to the year ended December 31, 2023.

Realized gain on exchange of digital assets

For the year ended December 31, 2023, we recorded
a gain of $18.8 million from the exchange of 1,811.2 bitcoins and