Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 774

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1B
Chunk 774
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 provide computing power to digital asset mining
pools, and receive consideration in the form of digital assets, the value of which is determined using the market price of the related
digital asset at the time of receipt. By providing computing power to successfully add a block to the blockchain, the Company is entitled
to a fractional share of the digital assets award from the mining pool operator, which is based on the proportion of computing power the
Company contributed to the mining pool to the total computing power contributed by all mining pool participants in solving the current
algorithm.

For the year ended December 31, 2023, we received
1,507.3 bitcoins from Foundry mining pool. As of December 31, 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,