Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 110

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 110
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 leases entered into after the second quarter of 2024.

GPU servers lease expenses. We entered
into a GPU servers lease agreement to support our cloud services. The lease payment depends on the usage of the GPU servers.

For the six months ended June 30, 2025, GPU servers
lease expenses increased by $1.6 million, or 27%, compared to the GPU servers lease expenses incurred for the six months ended June 30,
2024. The increase primarily resulted from a higher average number of GPU servers leased.

Cost of revenue - Colocation Services

In the fourth quarter of 2024, we acquired Enovum
which provides colocation services. For the six months ended June 30, 2025 and 2024, the cost of revenue from colocation services was
comprised of the following:

    For the Six Months Ended
 June
    30, 

    2025  
    2024 

    Electricity costs 
    $493,061  
    $- 
  
    Lease expenses 
     307,277  
     - 
  
    Wage expenses 
     169,543  
     - 
  
    Other costs 
     230,001  
     - 
  
    Total 
    $1,199,882  
    $    - 

Electricity costs. These
expenses were closely correlated with the number of deployed servers hosted by the data center.

For the six months ended June 30, 2025, electricity costs totaled $0.5
million. We had no electricity costs for the six months ended June 30, 2024 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