NEW YORK, March 15, 2022 /PRNewswire/ -- Bit Digital, Inc.
(Nasdaq: BTBT) ("Bit Digital" or the "Company"), a bitcoin mining
company headquartered in New York,
announced its unaudited bitcoin production and mining operations
update for the fourth quarter ended December
31, 2021.
Preliminary Fourth Quarter 2021 Highlights
- The Company continued the redeployment of its miner fleet in
North America. As previously
announced, 100% of our fleet had exited China and arrived in North America as of November 17, 2021.
- 39.2% of our currently-owned fleet, or 10,462 bitcoin miners
and 712 Ethereum miners representing 0.511 Exahash ("EH/s") and
0.188 Terahash ("TH/s") respectively, was deployed in North America as of the date of this press
release. 27.8% of our fleet or 7,710 bitcoin miners representing
0.457 EH/s was deployed in North
America as of December 31,
2021.
- The Company owned 27,744 bitcoin miners and 731 Ethereum miners
as of December 31, 2021, with an
estimated maximum total hash rate of 1.6 EH/s and 0.3 TH/s,
respectively.
- On October 7, 2021, the Company
signed an agreement with Bitmain Technologies Limited ("Bitmain")
to purchase 10,000 Bitcoin miners. The purchases are expected to
increase Bit Digital's maximum hash rate by approximately 1.0 EH/s.
Pro forma with these announced purchases, our maximum total hash
rate is expected to be approximately 2.6 EH/s.
- The Company purchased 731 Ethereum ("ETH") miners on the spot
market during the quarter, the majority of which were deployed
subsequent to year end.
- The Company earned 240.57 bitcoins during the quarter. The
decrease relative to prior quarters
was primarily due to the miner migration and redeployment
program.
- Treasury holdings of BTC were 808.2, with a fair market value
of approximately $37.4 million on
December 31, 2021.
- Approximately 67% of our fleet's electricity consumption was
generated from carbon-free energy sources as of December 31, 2021, based on data provided by our
hosts, publicly available sources, and internal estimates,
demonstrating our commitment to sustainable practices in the
digital asset mining industry.
- On December 7, 2021, the Company
became a member of the Bitcoin Mining Council ("BMC"), joining
MicroStrategy and other founding members to promote transparency,
share best practices, and educate the public on the benefits of
bitcoin and bitcoin mining.
Miner Deployments
During the quarter and subsequent to year end, the Company
continued to work with our hosting partners to deploy miners. As
previously announced, 100% of our fleet had exited China by September 31,
2021 and arrived in North
America by November 17,
2021.
39.2% of our currently-owned fleet, or 10,462 bitcoin miners and
712 Ethereum miners representing 0.511 Exahash ("EH/s") and 0.188
Terahash ("TH/s") respectively, was deployed in North America as of the date of this press
release. 27.8% of our fleet or 7,710 bitcoin miners representing
0.457 EH/s was deployed in North
America as of December 31,
2021.
Power and Hosting Updates
During the quarter and subsequent to year end, the Company's
hosting partners continued to prepare sites to deliver our
contracted hosting capacity, bringing additional power online for
our miners.
Compute North's facilities in Nebraska and Texas currently provide approximately 20 MW to
power our miners[1]. Our
overall expected hosting capacity with Compute North is
approximately 48 MW. Compute North expects to deliver the remaining
approximately 28 MW of anticipated hosting capacity to us in Q3 and
Q4 2022.
At our new facility in Niagara
Falls, New York, our partner
Blockfusion USA ("Blockfusion") has installed
approximately 8 MW of power
capacity for our miners. Upon
completion, this facility is expected to deliver an aggregate of 35
MW to power our miners. Completion is currently expected during the
summer of 2022.
At our new facilities in North Tonawanda and Buffalo, New York,
our partner Digihost Technology
Inc. ("Digihost") has installed approximately 7 MW of power capacity
for our miners. Upon completion, these combined facilities
are expected to deliver an aggregate of 20 MW to power our miners.
Completion is currently expected in Q2 2022. Additionally, Digihost
has advised us that it is unable to proceed with a
previously-identified new site in Upstate New York that was
expected to deliver Digihost's remaining hosting commitment to us.
Digihost is currently exploring potential alternative sites for the
remaining 100 MW of contracted hosting capacity pursuant to our
agreements; delivery date is to be determined.
Core Scientific's facility
in Georgia currently provides approximately 0.3
MW to power our miners.
As previously announced, our hosting partner Link Global
Technologies ("Link") has advised us that Link's facility in
Alberta, Canada that had supplied
approximately 3.3 MW to our miners was required to discontinue
operations as a result of a permitting dispute. Link is currently
evaluating alternative sites to accommodate our miners. In the
interim, pending further updates, Bit Digital has redirected miners
formerly hosted with Link to other hosting partners.
The following table summarizes our expected timing of hosting
deliveries, by quarter:
Expected Delivery
Timing
|
|
Approximate
Power
Capacity
(MW)
|
|
Delivered as of
December 31, 2021
|
|
|
27.1
|
|
Q1 2022
|
|
|
8.5
|
|
Q2 2022
|
|
|
13.0
|
|
2H 2022
|
|
|
55.1
|
|
To be
determined
|
|
|
100.0
|
|
Total
|
|
|
203.7
|
|
Pro Forma Power Cost
Pro forma for hosting agreements signed to date, we expect to
enjoy a competitive base power and hosting rate of approximately
3.7 cents per kilowatt-hour, on a
weighted average basis. Approximately 83% of our signed hosting
contracts feature fixed power pricing, with approximately 17%
variable based on market pricing; the foregoing base power rate
therefore relies on certain assumptions, including estimates
regarding future energy procurement, and excludes profit sharing
arrangements. We achieve what we believe are attractive power
costs, in part, by offering profit shares to many of our hosting
partners. We believe that profit sharing helps align our interests
with our hosting partners, and contributes to strong performance
and uptime for our hosted miners.
Sustainable Power Update
Approximately 67% of our fleet's run-rate electricity
consumption was generated from carbon-free energy sources as of
December 31, 2021, demonstrating our
commitment to sustainable practices in the digital asset mining
industry.
Bitcoin Production Update
In the fourth quarter of 2021, Bit Digital earned 240.57 newly
minted bitcoins, which is similar
to the third quarter results. The decrease relative to prior quarters was primarily due
to the aforementioned miner migration and
redeployments to our North
American hosting partners' facilities. Bitcoin production is
expected to increase following the complete redeployment of our
miners in North
America and upon completion of announced miner
purchases.
The Company's quarterly bitcoin production since commencement of
our mining operations was as
follows:
Miner Fleet Update
As of December 31, 2021, the
Company owned 27,744 Bitcoin miners and 731 Ethereum miners with an
estimated maximum total hash rate of 1.603 EH/s and 0.297 TH/s
respectively. The Company's fleet of owned miners comprised the
following models:
Model
|
|
Owned as
of
December
31,
2021
|
|
|
MicroBT Whatsminer
M21S
|
|
|
16,296
|
|
|
MicroBT Whatsminer
M20S
|
|
|
3,690
|
|
|
Bitmain Antminer
S17
|
|
|
3,641
|
|
|
MicroBT Whatsminer
M10
|
|
|
1,938
|
|
|
Bitmain Antminer
T3
|
|
|
769
|
|
|
Bitmain Antminer S19
Pro
|
|
|
605
|
|
|
Bitmain Antminer
T17+
|
|
|
500
|
|
|
MicroBT Whatsminer
M30S
|
|
|
261
|
|
|
Bitmain Antminer
T17+
|
|
|
44
|
|
|
Total number of
bitcoin miners
|
|
|
27,744
|
|
|
Innosilicon A10
series ETH miners
|
|
|
731
|
|
|
|
Total
miners
|
|
|
28,475
|
|
|
|
Miner Purchases
On October 12, 2021, we signed an
agreement with Bitmain to purchase 10,000 Bitcoin miners. The total
maximum purchase price is estimated at US $65,000,000 (subject to certain potential
discounts), of which the initial installments have been made, with
the final installment due ten (10) days prior to each shipment
through June 2022. The announced
purchases are expected to increase Bit Digital's miner fleet hash
rate by approximately 1.0 EH/s. Pro forma for announced purchases,
our maximum total hash rate is expected to be approximately 2.603
EH/s.
On November 16, 2021, we signed an
agreement to purchase 731 ETH miners on the spot market, including
1 Innosilicon A10, 679 Innosilicon A10L and 51 Innosilicon A10U. As
of the date of this press release, the majority of the newly
purchased ETH miners had been deployed in North America.
The Company anticipates an ongoing opportunity to purchase
additional miners on spot markets
and through direct channels in the
coming months, subject to market conditions and capital
availability, and continues to monitor market conditions for such
purchase opportunities.
Private Placement Transaction with Institutional
Investors
In connection with the previously closed private placement
transaction with institutional investors for gross proceeds of
approximately $80 million, a resale
registration statement was filed with SEC and was declared
effective on January 25, 2022.
Management Commentary
"Having completed the migration of our entire fleet to
North America as of November 17, 2021, Bit Digital and our hosting
partners remain focused on
redeploying miners at our U.S. facilities. We initially experienced
some delays, including due to
supply chain limitations for electrical infrastructure equipment,
inspections and approvals. Since quarter-end, however, we have seen
material progress, and as of today have 39.2% of our fleet
operating in North America. We
would like to thank our team and our partners for their continued
dedication towards full redeployment of our miner fleet, which we
currently target for the second half of 2022."
About Bit Digital
Bit Digital, Inc. is a bitcoin mining company headquartered in
New York City. Our mining
operations are located in North
America. For additional information, please contact
Sam Tabar at
sam@bit-digital.com or visit our website
at www.bit-digital.com.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 3.D of our most recent Annual Report
on Form 20-F for the fiscal year ended December 31, 2020. If any material risk was to
occur, our business, financial condition or results of operations
would likely suffer. In that event, the value of our securities
could decline and you could lose part or all of your investment.
The risks and uncertainties we describe are not the only ones
facing us. Additional risks not presently known to us or that we
currently deem immaterial may also impair our business operations.
In addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. Future changes in the
network-wide mining difficulty rate or bitcoin hash rate may also
materially affect the future performance of Bit Digital's
production of bitcoin. Actual operating results will vary depending
on many factors including network difficulty rate, total hash rate
of the network, the operations of our facilities, the status of our
miners, and other factors. Additionally, all discussions of
financial metrics assume mining difficulty rates as of December 2021. See "Safe Harbor Statement"
below.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of Bit Digital, Inc., and its
subsidiary companies. All statements, other than statements of
historical fact included herein are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects," or
similar expressions, involving known and unknown risks and
uncertainties. Although the company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The company's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the company's periodic reports that
are filed with the Securities and Exchange Commission and available
on its website at http://www.sec.gov. All forward-looking
statements attributable to the company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the company does
not assume a duty to update these forward-looking statements.
[1] Of
this amount, approximately 6.5 MW continue to operate pursuant to
recently-expired contracts that the companies expect to
renew.
|
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SOURCE Bit Digital, Inc.