Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 290

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 4
Chunk 290
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 within the fair value hierarchy. The decision to elect the fair value option is determined on an instrument-by-instrument basis on the date the instrument is initially recognized, is applied to the entire instrument, and is irrevocable once elected. For instruments measured at fair value, embedded conversion or other features are not required to be separated from the host instrument. Issuance costs related to convertible securities carried at fair value are not deferred and are recognized as incurred on the consolidated statements of operations.
(g) Investment in AI Innovation Fund I (“AI fund”)

On July 15, 2024, the Company entered into a subscription agreement with Pleasanton Ventures Innovation Master Fund SPC Limited for investment of $15.9 million in its AI Innovation Fund I. The investment includes a direct investment into private equity and fund of fund opportunities within the AI industry. On May 20, 2025 the Company invested an additional $2.0 million into the fund.

As a practical expedient, the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund. For the three months ended June 30, 2025, the Company recorded cumulative downward adjustments of $75,000 on the investment. For the six months ended June 30, 2025, the Company recorded cumulative downward adjustments of $150,000 on the investment.
(h) Investment in Innovation Fund I (“Innovation fund”)

After the Company disposed its BVI entities for its previous fund operation (See Note 20. Disposition of Bit Digital Investment Management Limited and Bit Digital Innovation Master Fund Spc Limited for more information), the Company no longer consolidates the investment in the fund. As a practical expedient, the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of the investment in the fund.
On March 25, 2025, the Company invested an additional 3,400 ETH, equivalent to approximately $7.0 million into the fund. For the three months ended June 30, 2025 and 2024, the Company recorded cumulative upward adjustments of $3,917,951 and $331,625, respectively, on the investment. For the six months ended June 30, 2025 and 2024, the Company recorded cumulative downward adjustments of $623,477 and downward adjustment of $2,676,237, respectively, on the investment.

http://fasb.org/srt/2025#ChiefOperatingOfficerMember

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