Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 953

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 953
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 staked Ethereum. Since the first quarter of 2024, the Company has no liquid staking activities.

In the first quarter of 2024, the Company has
restaked 3,008 ETH into EigenLayer, a protocol built on Ethereum that enables restaking of the already-staked ETH, through Figment. To
mitigate potential risks, we restake our ETH without delegating to any operator. As of the date of this report, the reward earned from
this restaking activity is not significant.

For the year ended December 31, 2024, we earned
565.1 ETH in native staking and 1.3 ETH in liquid staking, respectively. For the year ended December 31, 2024, we recognized revenues
of $1,815,373 and $4,503 from native staking and liquid staking, respectively.

For the year ended December 31, 2023, we earned
287.0 ETH in native staking and 81.9 ETH/rETH-h in liquid staking, respectively. For the year ended December 31, 2023, we recognized
revenues of $531,702 and $144,011 from native staking and liquid staking, respectively.

Our revenues from ETH native staking increased
by $1,283,671, or 241.4%, to $1,815,373 for the year ended December 31, 2024 from $531,702 for the year ended December 31, 2023. The increase
was primarily due to an increase of 278.1 ETH earned from native staking service and an increase in the average price of ETH for the year
ended December 31, 2024 compared to the year ended December 31, 2023.

Our revenues from ETH liquid staking decreased
by $139,508, or 96.9%, to $4,503 for the year ended December 31, 2024 from $144,011 for the year ended December 31, 2023. The decrease
was due to the termination of liquid staking activities in the first quarter of 2024.

86

Cost of revenue 

We incur cost of revenue from our from digital
asset mining, cloud services, colocation services, and ETH staking businesses.

The Company’s cost of revenue consists primarily
of (i) direct production costs related to mining operations, including electricity costs, profit-sharing fees and