Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 111

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 111
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 no wage expenses for the six months ended June 30, 2024 as we acquired Enovum in the fourth quarter of 2024, which provides
colocation services.

62

Cost of revenue - digital asset mining

For the six months ended June 30, 2025 and 2024,
the cost of revenue from digital asset mining was comprised of the following:

    For the Six Months Ended
 June
    30, 

    2025  
    2024 

    Electricity costs 
    $8,567,364  
    $15,264,702 
  
    Profit-sharing fees 
     2,242,111  
     6,977,443 
  
    Other costs 
     1,389,999  
     1,280,628 
  
    Total 
    $12,199,474  
    $23,522,773 

Electricity costs. These expenses
were incurred by mining facilities for the miners in operation and were closely correlated with the number of deployed miners.

For the six months ended June 30, 2025, electricity
costs decreased by $6.7 million, or 44%, compared to the electricity costs incurred for the six months ended June 30, 2024. The decrease
primarily resulted from a decrease in the number of deployed miners.

Profit-sharing fees. We enter into
hosting agreements with certain mining facilities, which included performance fees calculated as a fixed percentage of net profit generated
by the miners. We refer to these fees as profit-sharing fees.

For the six months ended June 30, 2025, profit-sharing
fees decreased by $4.7 million, or 68%, compared to profit-sharing fees incurred in the six months ended June 30, 2024. The decrease in
profit-sharing fees was primarily due to a lower bitcoin production and partially offset by the higher average BTC price for six months
ended June 30, 2025.

Cost of revenue - ETH staking

For the six months ended June 30, 2025, cost of
revenue from ETH staking business increased by $21,312, or 52%, compared to the cost of revenue incurred for the six months ended June
30, 2024. The increase was primarily driven by an increased number of staked ETH from 17,184 ETH in the six months ended June 30, 2024
to 21