Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 148

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 148
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 2024, respectively.

Revenue from digital asset mining

We provide computing power to digital asset mining
pools, and receive consideration in the form of digital assets, the value of which is determined using the market price of the related
digital asset at the time of receipt. By providing computing power to successfully add a block to the blockchain, the Company is entitled
to a fractional share of the digital assets award from the mining pool operator, which is based on the proportion of computing power the
Company contributed to the mining pool to the total computing power contributed by all mining pool participants in solving the current
algorithm. 

For the three months ended March 31, 2025, we
received 83.3 bitcoins from the Foundry USA Pool (“Foundry”) mining pool. As of March 31, 2025, our maximum hash rate was
at an aggregate of 2.4 EH/s for our bitcoin miners. For the three months ended March 31, 2025, we recognized revenue of $7.8 million from
bitcoin mining services.

For the three months ended March 31, 2024, we
received 410.7 bitcoins from the Foundry USA Pool (“Foundry”) mining pool. As of March 31, 2024, our maximum hash rate was
at an aggregate of 4.2 EH/s for our bitcoin miners. For the three months ended March 31, 2024, we recognized revenue of $21.9 million
from bitcoin mining services.

Our revenues from digital asset mining services
decreased by $14.1 million, or 64.5%, to $7.8 million for the three months ended March 31, 2025 from $21.9 million for the three months
ended March 31, 2024. The decrease was primarily due to a decrease of 327.4 bitcoins generated from our mining business and partially
offset by a higher average BTC price in the first quarter of 2025, compared to the same period in 2024.

We expect to continue to opportunistically invest
in miners to increase our hash rate capacity. 

Revenue from ETH staking

During the fourth quarter of 2022, we commenced
ETH staking business, in both native staking and liquid staking.

For the ETH native staking business, we previously
partnered with Blockdaemon, Marsprotocol and MarsLand Global Limited (“MarsLand”). Currently, we stake ETH with Fig