Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 42

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 42
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     -  
     1,941,930 

    $7,415,702  
    $10,110,221  
    $21,824,503  
    $48,081,874 

ETH
staking business  

The
Company generates revenue through ETH staking rewards. The Company commenced both native staking business and liquid staking business
in 2022. In the first quarter of 2024, the Company terminated its liquid staking business. During the nine months ended September 30,
2025, the Company participated in both native staking and liquid staking. In July 2025, we resumed liquid staking through the Liquid
Collective protocol with 5,120 ETH.

With
the introduction of staked ETH withdrawals in April 2023, we have reassessed our Ethereum network staking approaches, weighing the advantages
of traditional staking against liquid staking solutions. The withdrawal feature in native staking, coupled with yields that are on par
with those of liquid staking, has encouraged us to expand our collaborations with other service providers in this domain. As a result,
we have terminated all liquid staking activities with StakeWise and Liquid Collection in the third quarter of 2023 and in the first quarter
of 2024, respectively, reclaiming all staked Ethereum along with the accumulated rewards. In the fourth quarter of 2023, the Company
terminated the native staking activities and reclaimed all staked Ethereum with Blockdaemon. Subsequently, we have ceased our native
staking with MarsLand in the first quarter of 2024 and initiated our native staking with Figment Inc.

20

(a) Native
staking

The
Company has entered into network-based smart contracts by staking ETH on nodes run by third-party operators or nodes maintained by us
in 2022. Through these contracts, the Company stakes ETH on nodes for the purpose of validating transactions and adding blocks to the
Ethereum blockchain network. The Company is able to withdraw the staked ETH which was previously locked-up in staking contracts since
the Shanghai upgrade was successfully completed on April 12, 2023. In exchange for staking the ETH and validating transactions on blockchain
networks, the Company is entitled to the block rewards and transaction fees for successfully validating or adding a block to the blockchain.
These rewards are received by the Company directly from the Ethereum network and are calculated approximately based on the proportion
of the Company’s stake