Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1968

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1968
---
 Non-deductible impairment on digital assets 
     0.0% 
     (14.1)% 
     (4.5)%
  
    Non-taxable capital gain on investments/digital assets 
     (12.0)% 
     21.5% 
     4.2%
  
    Non-deductible Fixed Asset Impairment 
     0.0% 
     0.0% 
     (9.9)%
  
    Effect of change in valuation allowance 
     (14.6)% 
     (4.1)% 
     (7.4)%
  
    Impact from adoption of new accounting standard 
     1.4% 
     0.0% 
     0.0%
  
    Withholding tax on intercompany interest 
     0.0% 
     0.0% 
     (0.1)%
  
    Others 
     0.1% 
     (0.2)% 
     0.1%
  
    Effective income tax rate 
     12.3% 
     (2.0)% 
     0.6%

F-39

A reconciliation of gross unrecognized tax benefits
was as follows:

    For the Years Ended December 31, 

    2024  
    2023  
    2022 

    Unrecognized tax benefits at the beginning of the year 
    $3,196,204  
    $3,044,004  
    $2,767,276 
  
    Increases for tax positions taken in prior years 
    $-  
    $152,200  
    $276,728 
  
    Unrecognized tax benefits at the end of the year 
    $3,196,204  
    $3,196,204  
    $3,044,004 

The amounts of unrecognized tax benefits that
would impact the effective tax rate were $3.2 million, $3.2 million and $3.0 million as of December 31, 2024, 2023 and 2022, respectively.
The amounts of interest and penalties recognized during the years ended December 31, 2024, 2023 and 2022 were expenses (benefits) of $nil
million, $0.2 million and $0.3 million, respectively. Our policy is to include interest and penalties