Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1010

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 1010
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 measurement of the Fund. The Company retains the Fund’s investment
company specific accounting principles under ASC 946 upon consolidation. The digital assets held by the Fund were traded on a number of
active markets globally. A fair value measurement under ASC 820, “Fair Value Measurement” (“ASC 820”) for an asset
assumes that the asset is exchanged in an orderly transaction between market participants either in the principal market for the asset
or, in the absence of a principal market, the most advantageous market for the asset (ASC 820-10-35-5). The fair value of the assets within
the Fund was primarily determined using the price from CoinMarketCap. Any changes in the fair value of the assets were recorded in Other
income (expense), net in the consolidated statements of operations.

On July 1, 2024, the Company entered into a share
purchase agreement with Pleasanton Ventures Limited (“Pleasanton Ventures”) for the disposition of Bit Digital Innovation
Master Fund SPC Ltd and Bit Digital Investment Management Limited. Refer to Note 21, Disposition of Bit Digital Investment Management
Limited and Bit Digital Innovation Master Fund SPC Limited for more information. Upon the disposition, the Company no longer has
a controlling financial interest in the Fund and therefore deconsolidated the Fund in accordance with ASC 810 – “Consolidation”
(“ASC 810”). The Company did not record any gain or loss upon deconsolidation as the digital assets in the Fund were measured
at fair value. Subsequently, the investment in the Fund is included under the caption “Investment securities” as Investment
in Innovation Fund. Refer to Note 10, Investment Securities for more information.

Leases

The Company determines whether an arrangement
contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the
date on which the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the
lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination
options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is
reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement,
which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the
lease term.

For leases