Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 60

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 60
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    $(11,411,319) 
    $(40,574,170) 
    $40,247,888 
  
    Provision for (benefit from) income taxes 
    $1,591,557  
    $541,781  
    $2,263,273  
    $2,119,131 
  
    Effective tax rate 
     9.7% 
     (4.7)% 
     (5.6)% 
     5.3%

Our income tax provision was $1.6 million and
$0.5 million for the three months ended June 30, 2025 and 2024, respectively. The income tax provision was higher during the three months
ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to increase of $0.9 million in Canada due to the unrealized
gain resulted from increased bitcoin price during the three months ended June 30, 2025 as compared to the same period in 2024 and increase
of $0.2 million in the United States due to higher taxable profits from digital assets sales during the three months ended June 30, 2025
compared to the same period in 2024.

Our income tax provision was $2.3 million and
$2.1 million for the six months ended June 30, 2025 and 2024, respectively. The income tax provision did not change materially during
the six months ended June 30, 2025 compared to the same period in 2024.

With the enactment of the One Big Beautiful Bill
Act (“OBBBA”) on July 4, 2025, the Company anticipates a reduction in our U.S. federal cash tax payments for the remainder
of 2025 as the 100% bonus depreciation on qualified assets is permanently restored. There are several alternative ways of implementing
the provisions of the OBBBA, which we are currently evaluating. At this time, we do not expect the OBBBA to have a material impact on
our tax provision and expect to recognize its effects in our financial results for the period ending September 30, 2025.

We also continue to monitor the adoption of Pillar
Two relating to the global minimum tax in each of our tax jurisdictions to evaluate its impact on our effective income tax rate. For the
three months ended June 30, 2025, the Company