Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1150

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1150
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 years ended December 31, 2023 and 2022,
depreciation and amortization expenses were $14.4 million and $27.8 million, respectively, primarily based on an estimated useful life
of three years for the miners.

General and administrative expenses 

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.

For the year ended December 31, 2022, our general
and administrative expenses, totaling $23.0 million, were primarily comprised of professional and consulting expenses of $7.7 million,
transportation expenses of $0.7 million to relocate miners, salary and bonus expenses of $2.7 million, shared-based compensation expenses
of $2.3 million related to RSUs and share options granted to our employees, consultants and director, directors and officers liability
insurance expenses of $3.3 million, marketing expenses of $1.1 million, and litigation settlement costs of $2.1 million. 

Realized gain on exchange of digital assets

Digital assets are recorded at cost less impairment.
Any gains or losses from sales of digital assets are recorded as “Realized gain on exchange of digital assets” in the consolidated
statements of operations. For the year ended December 31, 2023, we recorded a gain of $18.8 million from the exchange of 1,811.2 bitcoins
and 5,712.4 ETH. For the year ended December 31, 2022, we recorded a gain of $6.5 million from the exchange of 1,109.3 bitcoins and 87.2
ETH.

93

Impairment of digital assets

Impairment of digital assets was $6.6 million
and $24.7 million for the years ended December 31, 2023 and 2022, respectively. We utilized the intraday low price of digital assets in
calculation of impairment of digital assets.

For the year ended December 31, 2023, the impairment
of $6.