Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1207

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1207
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 that are directly related to fulfilling its cloud services which commenced operations in January 2024. The lease
expense is directly related to fulfill customer contracts and is expected to be recovered. As of December 31, 2024 and
2023, capitalized costs to fulfill a contract totaled $nil and $100 thousand, respectively.

Contract Liabilities

The Company’s
contract liabilities consist of deferred revenue and customer deposits. The following table presents changes in the total contract liabilities::

    For the Years Ended December 31, 

    2024  
    2023 
  
    Beginning balance 
    $13,073,449  
    $- 
  
    Revenue earned (a) 
     (14,371,827) 
     - 
  
    Prepayment received 
     32,070,330  
     13,073,449 
  
    Ending balance 
    $30,771,952  
    $13,073,449 

  (a) Revenue earned includes deferred revenue of $0.6 million from the acquisition of Enovum. Please refer to Note 4. Acquisitions for further information. 

Remaining performance obligation

The following
table presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation
as of December 31, 2024:

    2025  
    2026  
    2027  
    2028  
    2029  
    Total 
  
    Colocation Services 
    $8,683,713  
    $4,853,947  
    $1,097,674  
    $29,143  
    $-  
    $14,664,477 
  
    Other Revenue 
     1,010,070  
     640,543  
     360,111  
     222,236  
    $67,682  
     2,300,642 
  
    Total contract liabilities 
    $9,693,783  
    $5,494,490  
    $1,457,785  
    $251,379  
    $67,682  
    $16,965,119 

4. Acquisitions

On October
11, 2024, the Company acquired 100% of Enovum Data Centers Corp (the “Acquiree” or “Enovum”),