Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 194

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 194
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30, 2025 from $38.0 million for the six months ended
June 30, 2024. The decrease was primarily due to a decrease of 503.4 bitcoins generated from our mining business and partially offset
by a higher average BTC price for the six months ended June 30, 2025, compared to the same period in 2024.

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, we previously partnered with Blockdaemon,
Marsprotocol and MarsLand. Currently, we stake ETH with Figment, using 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 to the total ETH staked by all validators.

In the fourth quarter of 2023, the Company terminated
the native staking activities and reclaimed all staked Ethereum with Blockdaemon. Our native staking operations with Marsprotocol commenced
in the first quarter of 2023 and concluded in July 2023. After ceasing operations with Marsprotocol, we initiated our native staking operations
with MarsLand in August 2023. In the first quarter of 2024, we concluded our operations with MarsLand and initiated our native staking
operations with Figment. As of December 31, 2024, all of our native staking operations are with Figment.

For the liquid staking business, the Company has
deployed ETH into Portara protocol (formerly known as Harbour) supported by liquid staking solution provider under the consortium of Blockdaemon
and Stakewise, and Liquid Collective protocol supported by Coinbase. By staking, we receive receipt tokens for the ETH staked which could
be redeemed to ETH or can be traded or collateralized elsewhere, at any time. In addition,