Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1880

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1880
---
 2023, our maximum hash rate was at an aggregate of 3.9 EH/s for our bitcoin
miners. For the year ended December 31, 2023, we recognized revenue of $44.2 million from bitcoin mining services.

For the year ended December 31, 2022, we received
1,247.5 bitcoins from Foundry mining pool and 294.3 ETHs from Ethermine mining pool(“Ethermine”) operated by Bitfly Gmbh.
We discontinued the ETH mining operations in September 2022 due to the Ethereum blockchain switching from proof-of-work (“PoW”)
consensus mechanism to proof-of-stake (“PoS”) validation. For the year ended December 31, 2022, we recognized revenue of $31.4
million and $0.9 million from bitcoin mining services and ETH mining services, respectively.

Our revenues from digital asset mining services
increased by $12.0 million, or 37.1%, to $44.2 million for the year ended December 31, 2023 from $32.3 million for the year ended December
31, 2022. The increase was primarily due to an increase of 259.8 in the number of BTC earned from mining services and an increase in the
average price of BTC for the year ended December 31, 2023 compared to the year ended December 31, 2022.

91

We expect to continue to opportunistically invest
in miners to increase our hash rate capacity.

Revenue from ETH staking

During the fourth quarter of 2022, we commenced
ETH staking business, in both native staking and liquid staking.

For the ETH native staking business with Blockdaemon,
Marsprotocol and MarsLand, we stake ETH, through network-based smart contracts, on a node for the purpose of validating transactions and
adding blocks to the network. Through these contracts, the Company stakes ETH on nodes for the purpose of validating transactions and
adding blocks to the Ethereum blockchain network. The Company is able to withdraw staked ETH under contracted staking since April 12,
2023 when the announced Shanghai upgrade was completed. In exchange for staking the ETH and validating transactions on blockchain networks,
the Company is entitled to block rewards and transaction fees for successfully validating or adding a block to the blockchain. These rewards
are received by the Company directly from the Ethereum network and are calculated approximately based on the proportion of the Company’s
stake