Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 109

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 109
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 of revenue

We incur cost of revenue from digital asset mining,
cloud services, colocation services, and ETH staking businesses.

The Company’s cost of revenue consists primarily
of direct production costs associated with its core operations, excluding depreciation and amortization, which are separately stated in
the Company’s consolidated statements of operations. Specifically, these costs consist of:

    i.
    cloud services operations - electricity costs, datacenter lease expense, GPU servers lease expense, and other relevant costs

    ii.
    colocation services - electricity costs, lease costs, data center employees’ wage expenses, and other relevant costs 

    iii.
    mining operations - electricity costs, profit-sharing fees and other relevant costs

    iv.
    ETH staking business - service fee and reward-sharing fees to the service providers.

Cost of revenue - cloud services

For the six months ended June 30, 2025 and 2024,
the cost of revenue from cloud services was comprised of the following:

    For the Six Months Ended
 June
    30, 

    2025  
    2024 

    Electricity costs 
    $1,171,592  
    $226,421 
  
    Datacenter lease expenses 
     2,639,653  
     1,306,110 
  
    GPU servers lease expenses 
     7,496,856  
     5,912,240 
  
    Other costs 
     1,171,019  
     307,857 
  
    Total 
    $12,479,120  
    $7,752,628 

61

Electricity costs. These expenses
were incurred by the data center for the high performance computing equipment and were closely correlated with the number of deployed
GPU servers.

For the six months ended June 30, 2025, electricity
costs increased by $0.9 million, or 417%, compared to the electricity costs incurred for the six months ended June 30, 2024. The increase
primarily resulted from an increase in the number of deployed GPU servers.

Datacenter lease expenses. We entered
into datacenter lease agreements for fixed monthly recurring costs.

For the six months ended June 30, 2025, datacenter
lease expenses increased by $1.3 million, or 102%, compared to the datacenter lease expenses incurred for the six months ended June 30,
2024. The increase primarily resulted from two additional datacenter