Bit Digital, Inc Segments Disclosure

19. SEGMENT REPORTING

 

The Company has four reportable segments: digital asset mining, cloud services, colocation services, and ETH Staking. The reportable segments are identified based on the types of service performed.

 

The digital asset mining segment generates revenue from the bitcoin the Company earns through its mining activities. Cost of revenue consists primarily of direct production costs of mining operations, including electricity, management fee and maintenance cost but excluding depreciation and amortization.  

 

The cloud services segment generates revenue from providing high performance computing services to support generative AI workstreams. Cost of revenue consists of direct production costs, including electricity costs, data center lease expense, GPU servers lease expense, and other relevant costs, but excluding depreciation and amortization.

Colocation services generate revenue by providing customers with physical space, power and cooling within the data center facility. Cost of revenue consists of direct production costs related to our HPC data center services, including electricity costs, lease costs, data center employees’ wage expenses, and other relevant costs but excluding depreciation and amortization.

 

The Ethereum staking segment generates revenue from both native staking and liquid staking. Cost of revenue consists of direct cost related to ETH staking business including service fee and reward-sharing fees to the service providers.

 

The CODM analyzes the performance of the segments based on reportable segment revenue and reportable segment cost of revenue. No operating segments have been aggregated to form the reportable segments.

 

Other than the $20.1 million of goodwill from the Enovum acquisition allocated to the colocation services, the Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.

 

All Other revenue is generated from equipment leases with external customers.

 

The following tables present segment revenue and segment gross profit reviewed by the CODM:

 

The Year Ended December 31, 2025

 

		Digital asset mining				Cloud services				Colocation services				ETH staking				Total
Revenue from external customers		$	27,349,798			$	68,753,609			$	8,913,816			$	7,046,270			$	112,063,493
Reconciliation of revenue
Other revenue (a)																			1,496,827
Total consolidated revenue																			113,560,320
Less:
Electricity costs			15,971,622				2,433,451				1,438,218				-				19,843,291
Profit sharing fees			3,977,959				-				-				-				3,977,959
Data center lease expense			-				5,410,230				1,025,851				-				6,436,081
GPU lease expense			-				14,741,928				-				-				14,741,928
Wage expense			-				-				406,787				-				406,787
Service costs - ETH staking			-				-				-				298,099				298,099
Third-party customer support fees			-				1,124,902				-				-				1,124,902
Other segment items (b)			2,242,764				2,736,843				579,679				-				5,559,286
Segment gross profit		$	5,157,453			$	42,306,255			$	5,463,281			$	6,748,171			$	59,675,160

 

(a)

Other revenue is primarily attributable to equipment leasing revenue and is therefore not included in the total for segment gross profit.

 

(b)	All amounts included within other segment items are individually insignificant.

The Year Ended December 31, 2024

 

		Digital asset mining				Cloud services				Colocation services				ETH staking				Total
Revenue from external customers		$	58,591,608			$	45,727,735			$	1,361,241			$	1,819,876			$	107,500,460
Reconciliation of revenue
Other revenue (a)																			550,260
Total consolidated revenue																			108,050,720
Less:
Electricity costs			30,598,881				1,007,112				188,559				-				31,794,552
Profit sharing fees			9,175,239				-				-				-				9,175,239
Data center lease expense			-				3,558,987				149,260				-				3,708,247
GPU lease expense			-				13,640,737				-				-				13,640,737
Wage expense			-				-				12,156				-				12,156
Service costs - ETH staking			-				-				-				72,067				72,067
Other segment items (b)			2,532,892				1,301,416				140,526				-				3,974,834
Segment gross profit		$	16,284,596			$	26,219,483			$	870,740			$	1,747,809			$	45,122,628

 

(a)	Other revenue is primarily attributable to equipment leasing and is therefore not included in the total for segment gross profit.

 

(b)	All amounts included within other segment items are individually insignificant.

 

The following table presents the reconciliation of segment gross profit to net (loss) income before taxes:

 

		For the Years Ended December 31,
		2025				2024
Segment gross profit		$	59,675,160			$	45,122,628
Reconciling Items:
Other profit (a)			1,496,827				550,260
Depreciation and amortization expenses			(36,817,348	)			(32,311,056	)
General and administrative expenses			(80,964,293	)			(41,508,279	)
(Losses) gains on digital assets			(29,214,789	)			55,709,711
Impairment of digital intangible assets			(6,008,004	)			-
Net loss from disposal of property, plant and equipment			(907,769	)			(859,083	)
Other income, net			8,896,140				5,579,796
Gain from sale of investment security			924				-
Interest expense			(3,093,461	)			-
Net (loss) income before taxes		$	(86,936,613	)		$	32,283,977

 

(a)	Other profit is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit.

 

Long-lived assets consist of property, plant and equipment, operating lease right-of-use assets and finance lease right-of-use assets. The geographic information for long-lived assets as of December 31, 2025 and December 31, 2024 are as follows:

 

		For the Years Ended
		December 31, 2025				December 31, 2024
United States		$	148,209,414			$	18,289,197
Iceland			113,516,239				59,766,182
Canada			122,776,181				43,981,419
Singapore			183,466				233,229
Hong Kong			212,338				-
		$	384,897,638			$	122,270,027

Revenue by geographic location, based on the location where services are provided by the Company to the customer, with no other country individually comprising greater than 10% of total revenue, are as follows:

 

		For the Years Ended
		December 31, 2025				December 31, 2024
United States		$	27,349,798			$	58,591,608
Iceland			69,167,349				46,190,366
Canada			8,913,816				1,361,241
Singapore			7,046,270				1,819,876
Other countries			1,083,087				87,629
		$	113,560,320			$	108,050,720