Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1139

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1139
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 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 other relevant costs,
but excluding depreciation and amortization, which are separately stated in the Company’s consolidated statements of operations,
(ii) direct production costs related to cloud services operations, including electricity costs, datacenter lease expense, GPU servers
lease expense, and other relevant costs, but excluding depreciation and amortization, which are separately stated in the Company’s
consolidated statements of operations, (iii) direct production costs related to colocation services, including electricity costs, lease
costs and other relevant costs and (iv) direct cost related to ETH staking business including service fee and reward-sharing fees to the
service providers.

Cost of revenue - cloud services

For the years ended December 31, 2024 and 2023,
the cost of revenue from cloud services was comprised of the following:

    For the Years Ended December 31, 

    2024  
    2023 

    Electricity costs 
    $1,007,112  
    $- 
  
    Datacenter lease expenses 
     3,558,987