Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 956

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 956
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 the year ended December 31, 2023. The increase in
profit-sharing fees was primarily due to the higher average BTC price for the year ended December 31, 2024, partially offset by a lower
bitcoin production as a result of the halving of BTC, which occurred on April 19, 2024.

We expect a proportionate increase in the cost
of revenue as we continue to focus on the expansion and upgrade of our miner fleet.

Cost of revenue - ETH staking business

For the year ended December 31, 2024, cost of
revenue from ETH staking business increased by $21,265, or 42%, compared to the cost of revenue incurred for the year ended December 31,
2023. The increase primarily resulted from increased service costs due to the increased number of staked ETH.

88

Depreciation and amortization expenses

For the years ended December 31, 2024 and 2023,
depreciation and amortization expenses were $32.3 million and $14.4 million, respectively based on an estimated useful life of property,
plant, and equipment as discussed in Note 2. Summary of Significant Accounting Policies.

General and administrative expenses 

For the year ended December 31, 2024, our general
and administrative expenses, totaling $41.5 million, were primarily comprised of shared-based compensation expenses of $9.9 million, salary
and bonus expenses of $9.8 million, professional and consulting expenses of $13.5 million, directors and officers insurance expenses of
$0.9 million, marketing expenses of $1.8 million, and travel expenses of $1.0 million.

For the year ended December 31, 2023, our general
and administrative expenses, totaling $27.7 million, were primarily comprised of shared-based compensation expenses of $9.1 million, salary
and bonus expenses of $5.5 million, professional and consulting expenses of $5.4 million, directors and officers insurance expenses of
$1.7 million, marketing expenses of $1.2 million, travel expenses of $0.8 million, and transportation expenses of $0.2 million to relocate
miners.

Gains (losses) on digital assets

For the year ended December 31, 2024, a gain of
$55.7 million was recognized, primarily attributable to the increases in the prices of bitcoin and ETH as of December 31, 202