Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 206

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 206
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 significant influence. The total balance of investment securities was $39.0
million and $30.8 million as of June 30, 2025, and December 31, 2024, respectively. The increase of $8.2 million in the value of our investment
securities was mainly driven by an additional investment of $7.0 million in Innovation Fund I and an additional investment of $2.0 million
in AI Innovation Fund I, which partially offset by downward fair value adjustments of $0.8 million.

Accounts payable

Accounts payable primarily consists of amounts
due for costs related to our digital asset mining, cloud services, colocation services and ETH staking. Compared with December 31, 2024,
the balance of accounts payable decreased by $1.3 million in the three months ended June 30, 2025, largely due to a higher volume of payments
made.

Deferred revenue

Deferred revenue pertains to prepayments received
from customers for HPC business.

As of June 30, 2025, the Company’s current and non-current portion
of deferred revenue was $11.6 million and $28 thousand, respectively, compared to $30.7 million and $0.1 million, respectively, as of
December 31, 2024. The decrease in deferred revenue of $19.1 million reflects the recognition of $22.5 million in revenue related to the
successful fulfillment of performance obligations from our HPC services, partially offset by $3.4 million prepayments from customers for
HPC services to be rendered in the future.

Long-term income tax payable

Compared with December 31, 2024, the balance as
of June 30, 2025 did not change as no incremental penalty was accrued on the existing unrecognized tax benefits for the three months ended
June 30, 2024. Refer to Note 15. Income Taxes, for more information.

Non-GAAP Financial Measures 

In addition to consolidated U.S. GAAP financial
measures, we consistently evaluate our use of and calculation of the non-GAAP financial measures, such as “Adjusted EBITDA”.

67

EBITDA is computed as net income before interest,
taxes, depreciation, and amortization. Adjusted EBITDA is a financial measure defined as our EBITDA adjusted to eliminate the effects
of certain non-cash and / or non-recurring items that do not reflect our ongoing strategic business operations, which management believes