Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 818

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1B
Chunk 818
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 The Company does not use any exchanges to buy or sell digital assets.
Instead, the Company uses Amber Group’s OTC desk for selling or exchanging bitcoins for U.S. dollars or vice versa. The Company
determines CoinMarketCap as its principal market, as it is one of the earliest and the most trusted sources by users, institutions, and
media for comparing thousands of crypto assets and selected by the U.S. government.

The Company recognizes revenue by utilizing daily
close prices obtained from CoinMarketCap, except for the year 2022. During that specific year, the Company also used hourly close price
from CryptoCompare to recognize revenue from our digital asset mining activities. The Company believed the hourly close price can better
reflect revenue recognized from our digital asset mining activities as compared to daily close price from CoinMarketCap.

Purchases of digital assets by the Company and
digital assets awarded to the Company through its mining activities and staking activities are included within operating activities on
the accompanying consolidated statements of cash flows. The changes of digital assets are included within operating activities in the
accompanying consolidated statements of cash flows. After adopting ASU 2023-08, changes in fair value and realized gains or losses are
now reported as “gains (losses) on digital assets” in the consolidated statements of operations. Prior to this adoption, realized
gains or losses were reported as “realized gains (losses) on exchange of digital assets” in the consolidated statements of
operations. The Company accounts for its gains or losses in accordance with the first-in first-out method of accounting.

Deposits for property,
plant, and equipment

The deposits for property, plant, and equipment
represented advance payments for purchases of miner and high performance computing equipment. The Company initially recognizes deposits
for property, plant, and equipment when cash is advanced to our suppliers. Subsequently, the Company derecognizes and reclassifies deposits
for property, plant, and equipment to property, plant, and equipment when control over these equipment is transferred to and obtained
by the Company.

Below is the roll forward of the balance of deposits
for property, plant, and equipment for the year ended December 31, 2024 and 2023, respectively.

    For the Years Ended December 31, 

    2024  
    2023 

    Opening balance 
    $4,227,371  
    $2,594,881 
  
    Reclassification