Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 13

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 13
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ning on June 30, 2025, with approximately $15 million of target annualized revenue assuming the customer utilizes the GPUs at full
capacity for the duration of the contract. The initial customer elected to defer the commencement date until August 20, 2025, which is
the latest date under the agreement.

Digital Asset Business Segment

The digital asset business segment of the Digital
Infrastructure Business (the “Digital Asset Business Segment”) is currently comprised primarily of two distinct but highly
complementary operations: (i) digital asset mining (the “Digital Asset Mining Operations”); and (ii) ETH staking
(the “ETH Staking Operations”). On June 25, 2025, Bit Digital announced that the Digital Asset Business Segment had initiated
a strategic transition to become a pure-play ETH staking and treasury company. The Company began accumulating ETH and operating staking
infrastructure in 2022 and has steadily increased its holdings since that time.

Digital Asset Mining Business

We commenced our bitcoin (“BTC”) mining
business in February 2020. We initiated limited Ethereum mining operations in January 2022, however discontinued the operations by September
2022 due to Ethereum blockchain switching from proof-of-work (“PoW”) consensus mechanism to proof-of-stake (“PoS”)
validation. Our mining operations, hosted by third-party providers, use specialized computers, known as miners, to generate digital assets.
Our miners use application specific integrated circuit (“ASIC”) chips. These chips enable the miners to apply high computational
power, expressed as “hash rate”, to provide transaction verification services (generally known as “solving a block”)
which helps support the blockchain. For every block added, the blockchain provides an award equal to a set number of digital assets per
block. Miners with a greater hash rate generally have a higher chance of solving a block and receiving an award.

We operate our mining assets with the primary
intent of accumulating digital assets which we may sell for fiat currency from time to time depending on market conditions and management’s
determination of our cash flow needs, and/or exchange into ETH or USD Coin (“USDC”). Our mining strategy has been to mine
bitcoins as quickly and as many as possible given the fixed supply of bitcoins. In view of historically long delivery lead times to purchase
miners from manufacturers like Bitmain Technologies Limited (“Bitmain”) and MicroBT Electronics Technology Co., Ltd (“MicroBT”),
and other considerations, we have chosen to acquire miners on the spot market,