Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 34

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 34
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 2,789,387  
     2,811,550 
  
    Canada 
     -  
     683,578  
     -  
     1,662,414 

    $6,631,838  
    $16,079,893  
    $14,408,801  
    $37,971,653 

ETH staking business  

The Company generates revenue through ETH staking
rewards. The Company commenced both native staking business and liquid staking business in 2022. In the first quarter of 2024, the Company
terminated its liquid staking business. During the six months ended June 30, 2025, the Company only participated in native staking. In
July 2025, we resumed liquid staking through the Liquid Collective protocol with 5,120 ETH.

With the introduction of staked ETH withdrawals
in April 2023, we have reassessed our Ethereum network staking approaches, weighing the advantages of traditional staking against liquid
staking solutions. The withdrawal feature in native staking, coupled with yields that are on par with those of liquid staking, has encouraged
us to expand our collaborations with other service providers in this domain. As a result, we have terminated all liquid staking activities
with StakeWise and Liquid Collection in the third quarter of 2023 and in the first quarter of 2024, respectively, reclaiming all staked
Ethereum along with the accumulated rewards. In the fourth quarter of 2023, the Company terminated the native staking activities and reclaimed
all staked Ethereum with Blockdaemon. Subsequently, we have ceased our native staking with MarsLand in the first quarter of 2024 and initiated
our native staking with Figment Inc.

18

(a) Native staking

The Company has entered into network-based smart
contracts by staking ETH on nodes run by third-party operators or nodes maintained by us in 2022. Through these contracts, the Company
stakes ETH on nodes for the purpose of validating transactions and adding blocks to the Ethereum blockchain network. The Company is able
to withdraw the staked ETH which was previously locked-up in staking contracts since the Shanghai upgrade was successfully completed on
April 12, 2023. In exchange for staking the ETH and validating transactions on blockchain networks, the Company is entitled to the block
rewards and transaction fees for successfully validating or adding a block