Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1946

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1946
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additions of ETH generated by the Company’s ETH staking business, see Note 3. Revenue from Contracts with Customers.

ETH is sold
on a FIFO basis. For the year ended December 31, 2024, gains from the sales of ETH are included in change in fair value of ETH which is
included in the consolidated statements of operations under the caption “Gains on digital assets”.

F-25

Prior to Adoption of ASU 2023-08, Accounting
for and Disclosure of Crypto Assets

Prior to the adoption of ASU 2023-08, digital
assets were accounted for as indefinite-lived intangible assets and were initially measured in accordance with ASC 350 - Intangible-Goodwill
and Other. Digital assets were not amortized, but were assessed for impairment annually, or more frequently, when events or changes
in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the
exchange-traded price of digital assets declined below its carrying value, the Company was required to determine if an impairment existed
and to record an impairment equal to the amount by which the carrying value exceeded the fair value.

The following table presents a roll-forward of
BTC for the year ended December 31, 2023, based on the cost-impairment model under ASC 350:

    For the 
Year Ended December 31, 

    2023 
  
    Opening balance 
    $15,796,147 
  
    Receipt of BTC from mining services 
     44,240,418 
  
    Receipt of BTC from other income 
     140,724 
  
    Sales of BTC in exchange of cash 
     (4,679,714)
  
    Sales of BTC in exchange of ETH 
     (11,756,006)
  
    Sales of BTC in exchange of USDC 
     (17,251,504)
  
    Payment of BTC for service charges from mining facilities 
     (1,758,441)
  
    Payment of BTC for other expenses 
     (392,952)
  
    Impairment of BTC 
     (4,519,692)
  
    Ending balance 
    $19,818,980 

The following table presents a roll-forward of
ETH for the year ended December 31, 2023, based on the cost-impairment model under ASC 350:

    For the 
Year Ended December 31,