Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 58

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 58
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 the
Company had outstanding 10,118,046 private placement warrants to purchase an aggregate of 10,118,046 ordinary shares at an exercise price
of $7.91 per whole share. These warrants expired on July 25, 2025 and were not extended.

In accordance with ASC 815, the Company determined
that the warrants meet the conditions necessary to be classified as equity because the consideration is indexed to the Company’s
own equity, there are no exercise contingencies based on an observable market not based on its stock or operations, settlement is consistent
with a fixed-for-fixed equity instrument, the agreement contains an explicit number of ordinary shares and there are no cash payment provisions.

32

The fair value of the warrants was estimated at $33.3 million using
the Black-Scholes model. Inherent in these valuations are assumptions related to expected stock-price volatility, expected life, risk-free
interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical and implied volatilities
of selected peer companies as well as its own that match the expected remaining life of the warrants. The risk-free interest rate is based
on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants.
The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical
rate, which the Company anticipates it to remain at zero.

The following table provides quantitative information
regarding Level 3 fair value measurements inputs for the Company’s warrants at their measurement dates:

    As of October 4, 2021 
  
    Volatility 
     192.85%
  
    Stock price 
     7.59 
  
    Expected life of the warrants to convert 
     3.81 
  
    Risk free rate 
     0.97%
  
    Dividend yield 
     0.0%

14. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The components of goodwill as of June 30, 2025
are as follows:

    As of  June 30,  2025 

    Enovum Data Centers Corp. 
    $20,190,268 
  
    Total goodwill 
    $20,190,268 

The Company recorded goodwill in the amount of
$20.2 million in connection with its acquisition of the Enovum Data Centers Corp. (“En