YORK, Dec. 7, 2022 /PRNewswire/ -- Bit Digital,
Inc. (Nasdaq: BTBT) (the "Company"), a digital asset mining company
headquartered in New York City,
today announced its unaudited financial results for the third
quarter ended September 30, 2022.
Financial Highlights for the Third Quarter 2022
- Bitcoin mining revenue was $9.1 million for the third quarter of 2022.
Revenue from Ethereum mining was non-meaningful.
- The Company had cash, cash equivalents and restricted cash of
$33.6 million, and total liquidity
(defined as cash equivalents and restricted cash, USDC and digital
assets) of approximately $68.0
million, as of September 30,
2022. Total assets were $164.7
million as of September 30,
2022. Shareholders' equity amounted to $158.2 million as of September 30, 2022.
- Adjusted EBITDA was $(4.3)
million, or $0.05 loss per
share for the three-month ended September
Operational Highlights for the Third Quarter 2022
- The Company earned 429.1 bitcoins during the quarter. Factors
impacting production included the pace of the Company's ongoing
miner deployment program, and growth in the overall
bitcoin network hash rate. The Company earned 0.50
ETH from proof-of-work mining during the quarter.
- Treasury holdings of BTC and ETH were 943.1 and
5,261.8, with a fair market value of approximately $18.3 million and $7.0
million on September 30, 2022,
respectively. The BTC equivalent of our digital asset
holdings as of September 30, 2022
(defined as if all ETH and USDC holdings were
converted into BTC as of that date) was approximately 1,768.8
- The Company owned 38,032 bitcoin miners and 730
Ethereum miners as of September
30, 2022, with an estimated maximum total hash rate of 2.7
EH/s and 0.3 TH/s, respectively.
- The Company's active hash rate of its bitcoin
mining fleet was approximately 1.35 EH/s as of September 30, 2022.
- Approximately 79% of our fleet's run-rate electricity
consumption was generated from carbon-free energy sources as of
September 30, 2022, compared to 69%
as of June 30, 2022. These figures
are 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.
- In the third quarter, the Company finalized an agreement for 5
megawatts of incremental hosting capacity to power its miners. The
facility is located in Canada and
primarily utilizes hydroelectric energy.
- The Company sold 1,106 MicroBT Whatsminer M21S miners and 9
MicroBT Whatsminer M20S miners and wrote off 1 Innosilicon A10
series ETH miner during the nine months ended
September 30, 2022.
- Management believes that the Company has avoided most, if not
all, operational exposure to the Compute North bankruptcy that
commenced in September 2022.
- The Company's service agreement with Compute North, and
ownership of two facilities hosting the Company's miners, were
transferred to a third party prior to the bankruptcy filing.
- The Company is in process of confirming this counterparty is in
receipt of all Company assets.
- In the interim, as a precaution pending such confirmation, the
Company has timely filed as an unsecured creditor of Compute
"We are pleased to report that Bit Digital produced 429
bitcoin during the third quarter of 2022, representing
sequential growth of over 115% over the second quarter. This growth
highlights our continued progress as our active hash rate increased
to 1.35 EH, compared to 0.75 EH at the end of June. We continue to
work towards our goal of full fleet deployment; however, we will
only seek to rack our miners if the economics present an acceptable
return from doing so. We strive to maximize returns rather than
growth, and to avoid the pitfalls of unbridled expansion that have
impaired several participants across the sector.
Our hosting portfolio expanded during the quarter with the
addition of a new 5 MW hosting agreement with a provider in
Canada at a location that is
primarily hydro powered. Securing the most economic and ecofriendly
hosting remains a top priority for the company. We are actively
evaluating several new hosting opportunities and continue to
strategically target smaller sites to minimize both site and
The industry is currently negotiating significant macro
headwinds as the price of bitcoin and other digital
assets have come under pressure, helping to precipitate a series of
negative events across the ecosystem. We are well positioned
against this backdrop with a pristine balance sheet, no debt
obligations, no capex or miner purchase obligations, and a healthy
liquidity position. We ended the third quarter with $33.6 million in cash and restricted cash,
$9.1 million of USDC and $25.3 million of digital assets, for total
liquidity of $68.0 million. We remain
focused on preserving the strength of our balance sheet, and note
that our liquidity position provides flexibility to pursue
strategic growth opportunities. We expect the opportunity set will
only ripen over time as more mining equipment and companies are
liquidated out of distress.
We are excited to announce that we have commenced
Ethereum staking operations alongside our core
bitcoin mining business. This diversification into an
additional blue-chip digital asset ecosystem carries the goal of
creating a new, predictable, and recurring stream of digital
rewards. Combined, we believe bitcoin mining and
ETH staking are complementary business lines that can
enhance our overall margin and investment profile. Given our
constructive outlook for both BTC and ETH, we believe
this diversification is beneficial and see value in having the
notional ETH position on our balance sheet compound
over time. We believe that this strategy will ultimately maximize
value for all stakeholders."
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. 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.
EBITDA refers to earnings before interest expense, income tax
expense and depreciation expense ("EBITDA") adjusted to eliminate
the effects of certain non-cash and / or non-recurring
 "BTC equivalent" is a
hypothetical illustration of the value of our digital asset
portfolio in bitcoin terms. BTC equivalent is defined as if all
non-BTC digital assets, comprised of ETH and USDC, were converted
into BTC as of September 30, 2022kn and added to our existing BTC
balance. Conversion values are found using the closing price on
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SOURCE Bit Digital, Inc.