Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 48

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 48
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 that would have been issued upon vesting. For the three months ended March 31, 2025 and 2024, the
Company withheld nil ordinary shares that were surrendered to the Company for withholding taxes related to restricted stock vesting valued
at $nil, based on fair value of the withheld shares on the vesting date.

As of March 31, 2025 and December 31, 2024, the
Company had treasury stock of $1,171,679 and $1,171,679, respectively. 

Warrants 

As of March 31, 2025 and December 31, 2024, the
Company had outstanding 10,118,046 private placement warrants to purchase an aggregate of 10,118,046 ordinary shares at an exercise price
of $7.91 per whole share.

In accordance with ASC 815, the Company determined
that the warrants meet the conditions necessary to be classified as equity because the consideration is indexed to the Company’s
own equity, there are no exercise contingencies based on an observable market not based on its stock or operations, settlement is consistent
with a fixed-for-fixed equity instrument, the agreement contains an explicit number of ordinary shares and there are no cash payment provisions.

26

The fair value of the warrants was estimated at
$33.3 million using the Black-Scholes model. Inherent in these valuations are assumptions related to expected stock-price volatility,
expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical
and implied volatilities of selected peer companies as well as its own that match the expected remaining life of the warrants. The risk-free
interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining
life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend
rate is based on the historical rate, which the Company anticipates it to remain at zero.

The following table provides quantitative information
regarding Level 3 fair value measurements inputs for the Company’s warrants at their measurement dates:

    As of October 4, 2021 
  
    Volatility 
     192.85%
  
    Stock price 
     7.59 
  
    Expected life of the warrants to convert 
     3.81 
  
    Risk free rate 
     0.97%
  
    Div