Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 198

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 198
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 as we acquired Enovum in the fourth quarter of 2024, which
provides colocation services.

Lease expenses. These expenses were
incurred by the data center for lease agreement for a fixed monthly recurring cost.

For the six months ended June 30, 2025, data center lease expenses
totaled $0.3 million. We had no data center lease expenses for the six months ended June 30, 2024 as we acquired Enovum in the fourth
quarter of 2024, which provides colocation services.

Wage expenses. These expenses represent
the salaries and benefits of data center employees involved in the operation of our facilities.

For the six months ended June 30, 2025, wage expenses totaled $0.2
million. We had no wage expenses for the six months ended June 30, 2024 as we acquired Enovum in the fourth quarter of 2024, which provides
colocation services.

62

Cost of revenue - digital asset mining

For the six months ended June 30, 2025 and 2024,
the cost of revenue from digital asset mining was comprised of the following:

    For the Six Months Ended
 June
    30, 

    2025  
    2024 

    Electricity costs 
    $8,567,364  
    $15,264,702 
  
    Profit-sharing fees 
     2,242,111  
     6,977,443 
  
    Other costs 
     1,389,999  
     1,280,628 
  
    Total 
    $12,199,474  
    $23,522,773 

Electricity costs. These expenses
were incurred by mining facilities for the miners in operation and were closely correlated with the number of deployed miners.

For the six months ended June 30, 2025, electricity
costs decreased by $6.7 million, or 44%, compared to the electricity costs incurred for the six months ended June 30, 2024. The decrease
primarily resulted from a decrease in the number of deployed miners.

Profit-sharing fees. We enter into
hosting agreements with certain mining facilities, which included performance fees calculated as a fixed percentage of net profit generated
by the miners. We refer to these fees as profit-sharing fees.

For the six months ended June 30, 2025, profit-sharing
fees decreased by