Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1003

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 1003
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-use assets, and property,
plant and equipment, are adjusted to fair value when there is an indication of impairment and the carrying amount exceeds the asset’s
projected undiscounted cash flows. These assets are recorded at fair value only upon recognition of an impairment charge.

Cash
and cash equivalents

Cash includes
cash on hand and demand deposits in accounts maintained with commercial banks. The Company considers all highly liquid investment instruments
with an original maturity of three months or less from the date of purchase to be cash equivalents.

F-10

Restricted
Cash

Restricted
cash represents cash balances that support an outstanding letter of credit and are restricted from withdrawal. 

USDC

USD Coin
(“USDC”) is accounted for as a financial instrument that can be redeemed one USDC for one U.S. dollar on demand from the issuer.
While not accounted for as cash or cash equivalents, we treat our USDC holdings as a liquidity resource.

Accounts
Receivable

Accounts
receivable consist of amounts due from our customers. Receivables are recorded at the invoiced amount less an allowance for any potentially
uncollectable accounts under the current expected credit loss (“CECL”) impairment model and presents the net amount of the
financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over
the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events
and current conditions. In accordance with ASC 326, Measurement of Credit Losses on Financial Instruments (“ASC 326”), the
Company evaluates the collectability of outstanding accounts receivable balances to determine an allowance for credit loss that reflects
its best estimate of the lifetime expected credit losses. Uncollectible accounts are written off against the allowance when collection
does not appear probable.

Due to the
short-term nature of the Company’s accounts receivable, the estimate of expected credit loss is based on the aging of accounts using
an aging schedule as of period ends. In determining the amount of the allowance for credit losses, the Company considers historical collection
history based on past due status, the current aging of receivables, customer-specific credit risk factors including their current financial
condition, current market conditions, and probable future economic conditions which inform adjustments to historical loss patterns.

As of December
31, 2024, the allowance for credit loss has not been material to the consolidated financial statements.

Digital assets

Digital assets (primarily include bitcoin and
ETH) are included in current assets