Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 298

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 298
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.0 ETH in native staking and 81.9 ETH/rETH-h in liquid staking, respectively. For the year ended December 31, 2023, we recognized revenues
of $531,702 and $144,011 from native staking and liquid staking, respectively.

For the year ended December 31, 2022, we earned
3.7 ETH in native staking and 16.2 rETH-h in liquid staking, respectively. For the year ended December 31, 2022, we recognized revenues
of $5,722 and $20,182 from native staking and liquid staking, respectively.

Our revenues from ETH staking increased by $0.6
million or 2,508.5%, to $0.7 million for the year ended December 31, 2023 from $25,904 for the year ended December 31, 2022. The increase
was primarily due to an increase of 349.0 ETH earned from staking services partially offset by a decrease in the average price of ETH
for the year ended December 31, 2023 compared to the year ended December 31, 2022.

92

Cost of revenue

The Company’s cost of revenue consists primarily
of i) direct production costs related to mining operations, including electricity costs, profit-sharing fees and other relevant costs,
but excluding depreciation and amortization, which are separately stated in the Company’s consolidated statements of operations,
and ii) direct costs related to specialized cloud-infrastructure services for artificial intelligence applications and ETH staking business
including service fee and profit-sharing fees to the service providers, which were immaterial during the year ended December 31, 2023.

For the years ended December 31, 2023 and 2022,
the cost of revenue were comprised of the following:

    For the Years Ended December 31, 

    2023  
    2022 

    Electricity costs 
    $22,277,038  
    $15,113,046 
  
    Profit-sharing fees 
     5,902,205  
     4,027,597 
  
    Other costs 
     1,377,342  
     1,233,990 
  
    Total 
    $29,556,585  
    $20,374,633 

Electricity costs. These expenses were incurred by mining
facilities for the miners in operation and were