Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 2404

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 2404
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 each reporting period, with changes in fair value
recorded in the consolidated statements of operations. The fair value estimate includes significant inputs not observable in the market,
which represents a Level 3 measurement within the fair value hierarchy. The decision to elect the fair value option is determined on an
instrument-by-instrument basis on the date the instrument is initially recognized, is applied to the entire instrument, and is irrevocable
once elected. For instruments measured at fair value, embedded conversion or other features are not required to be separated from the
host instrument. Issuance costs related to convertible securities carried at fair value are not deferred and are recognized as incurred
on the Consolidated Statements of Operations. For the year ended December 31, 2024, the Company did not record upward adjustments or downward
adjustments on the investments.

(g) Investment in AI Innovation Fund I (“AI
fund”)

On July 15, 2024, the Company entered into a subscription
agreement with Pleasanton Ventures Innovation Master Fund SPC Limited for investment of $15.9 million in its AI Innovation Fund I. The
investment includes a direct investment into private equity and fund of fund opportunities within the AI industry.

As a practical expedient, the Company uses Net
Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund. As of December 31, 2024, the
Company recorded cumulative downward adjustments of $100,000 on the investment.

(h) Investment in Innovation Fund I (“Innovation
fund”)

After the Company disposed its BVI entities for
its previous fund operation (See Note 21, Disposition of Bit Digital Investment Management Limited and Bit Digital Innovation Master
Fund SPC Limited, for more information), the Company no longer consolidates the investment in the fund. As a practical expedient,
the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund. For the
years ended December 31, 2024, the Company recorded cumulative upward adjustments of $2,550,904 on the investment.

(i) Investment in MarsProtocol Technologies
Pte. Ltd. 

On March 1, 2023, Bit Digital Singapore Pte. Ltd.
and Saving Digital Pte. Ltd. (“SDP”), a wholly owned subsidiary of Mega Matrix Corp., entered into a shareholders’ agreement
with MarsProtocol Technologies Pte. Ltd. (“MarsProtocol”). MarsProtocol provides staking technology