Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 609

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 609
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 expressed an unqualified opinion on the Company’s internal
control over financial reporting.

Basis for Opinion

These consolidated financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements
based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below
are matters arising from the current-period audit of the consolidated financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of the critical audit matters does not alter in any way
our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing
a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

F-2

Revenue Recognition of Digital Asset Mining

As disclosed in Note 3 to the financial statements,
the Company’s ongoing major operation is entered into digital asset mining pools by executing contracts with the mining pool operators
to provide computing power to the mining pool.

We identified the procedures performed related
to revenue recognition as a critical audit matter due to the nature and extent of audit effort required to perform audit procedures over
the completeness and occurrence of revenue recognized.

The procedures we performed to address this critical
audit matter included the following:

●We performed site visits at the Company’s facilities