NEW YORK, April 29, 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 first quarter ended March 31, 2022.
Preliminary First Quarter 2022 Highlights
- The Company earned 194.48 bitcoins and 189.26 ETH during the
quarter. Factors impacting production included the Company's
ongoing miner redeployment program, growth in the overall bitcoin
network hash rate, and the number of days in the quarter.
- Treasury holdings of BTC and ETH were 832.14 and 266.71, with a
fair market value of approximately $37.9
million and $0.9 million on
March 31, 2022, respectively.
- As of March 31, 2022, 36.9% of
our owned fleet, or 9,748 bitcoin miners and 713 Ethereum miners
representing 0.544 Exahash ("EH/s") and 0.188 Terahash ("TH/s")
respectively, was deployed in North
America. 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 27,644 bitcoin miners and 731 Ethereum miners
as of March 31, 2022, with an
estimated maximum total hash rate of 1.6 EH/s and 0.3 TH/s,
respectively. As of April 27, 2022,
the Company owned 30,865 bitcoin miners with an estimated maximum
total hash rate of 1.9 EH/s.
- As of the date of this press release, the Company had received
2,515 machines pursuant to its previously announced 10,000-unit
purchase agreement with Bitmain Technologies Limited. The final
installment is expected to ship in June
2022. Pro forma for these announced purchases, our maximum
total hash rate is expected to be approximately 2.67 EH/s.
- The Company purchased 706 bitcoin miners on the spot market
during the first quarter. The Company took delivery of these
machines during April 2022. The
Company also sold 100 MicroBT Whatsminer M21S bitcoin miners during
- Approximately 67% of our fleet's electricity consumption was
generated from carbon-free energy sources as of March 31, 2022, 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.
During the quarter, the Company continued to work with our
hosting partners to redeploy its miners in North America. 36.9% of our currently-owned
fleet, or 9,748 bitcoin miners and 713 Ethereum miners representing
0.544 Exahash ("EH/s") and 0.188 Terahash ("TH/s") respectively,
was deployed in North America as
of March 31, 2022. 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.
During the year ended December 31,
2021, we also purchased 731 A10 miners for ETH mining, 700
of which were deployed in North
America in January 2022. As of
March 31, 2022, 713 ETH miners were
deployed with our hosting partners.
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
Compute North currently provides approximately 20 MW of capacity
for our miners. Our overall expected future hosting capacity with
Compute North is approximately 48 MW. We expect the remaining
approximately 28 MW of anticipated hosting deployments to begin
following our delivery of related equipment in the second half of
2022. As previously announced, during the quarter we signed a
renewal hosting agreement extending the term of a prior agreement
for an additional 5 years for approximately 6.5 MW of our total
hosting capacity with Compute North.
Our facility with Blockfusion USA in Niagara
Falls, New York currently provides approximately 9.4 MW to
power 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 second half of 2022.
Our new facilities with Digihost Technology Inc. ("Digihost") in
North Tonawanda and Buffalo, New York currently provide
approximately 7 MW to power 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 the coming
weeks. Additionally, Digihost has informed us that they
continue to work to identify a location to fulfill the remaining
100 MW of contracted hosting capacity pursuant to our
Our facility with Core Scientific in Georgia currently provides approximately 0.3
MW to power our miners.
Subsequent to quarter end, the Company announced the signing of
a Letter of Intent to establish a hosting relationship with BitMine
Immersion Technologies, Inc. beginning with 7,000 current
generation ASIC miners. The companies expect to primarily utilize
the efficiencies of mining bitcoin in immersion cooled containers,
a process by which the servers run fully submerged in a dielectric
fluid that efficiently cools the machines and allows for superior
machine output and energy efficiency. The companies have agreed in
principle to a mutually beneficial revenue split of the mined
Bitcoin, and a multi-year term.
The following table summarizes our expected delivery timing for
signed hosting commitments, by quarter:
Delivered as of March
Pro Forma Power Cost
Pro forma for hosting agreements signed as of March 31, 2022, 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
Sustainable Power Update
Approximately 67% of our fleet's run-rate electricity
consumption was generated from carbon-free energy sources as of
March 31, 2022, demonstrating our
commitment to sustainable practices in the digital asset mining
Bitcoin Production Update
In the first quarter of 2022, Bit Digital earned 194.48 newly
minted bitcoins. Factors impacting production included the
Company's ongoing miner redeployment program, growth in the overall
bitcoin network hash rate, and number of days in the quarter.
Bitcoin production is expected to increase following the
redeployment of our miners migrated from China and upon completion of announced miner
Our Ethereum miners, the majority of which were deployed in
January 2022, produced 189.26 ETH
during the quarter.
Miner Fleet Update
As of March 31, 2022,
the Company owned 27,644 Bitcoin miners and 731
Ethereum miners with an estimated maximum total hash rate of
1.6 EH/s and 0.3 TH/s, respectively.
Miner Purchases, Sales and Disposals
On March 27, 2022, the Company
entered into Asset Purchase Agreements with each of four
unaffiliated sellers of bitcoin mining computers. In total the
Company acquired 706 bitcoin miners on the spot market during the
quarter, including 184 S19 JPRO miners; 197 S19 miners; 197 S19
miners; and 128 S19/S19 Pro miners, respectively. The acquired
miners were delivered to the Company during April 2022. The Company sold 100 MicroBT
Whatsminer M21S miners during the quarter.
The Company anticipates an ongoing opportunity to purchase
additional miners including on spot market in the coming months,
subject to market conditions and capital availability, and
continues to monitor market conditions for such purchase
"During the first quarter of 2022, we achieved marked progress,
with our deployed mining fleet growing over 35% sequentially.
Visibility is improving, and we believe our deployment cadence is
poised to improve substantially over the coming months. We continue
to target the second half of 2022 for full fleet deployment. We
believe 2022 will be yet another transformative year for Bit
Digital as we achieve our redeployment targets, execute additional
growth initiatives, and progress towards our goal for our mining
operations to become entirely carbon-free."
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
firstname.lastname@example.org or visit our website
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, 2021. 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 March 2022 except as otherwise stated. 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.
For more information, please contact: email@example.com, +1
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SOURCE Bit Digital, Inc.