NEW
YORK, June 12, 2023 /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 first quarter ended March 31,
2023.
Financial Highlights for the First Quarter 2023
- Total revenue was $8.3 million
for the first quarter of 2023. The majority of revenue was earned
from our bitcoin mining business.
- The Company had cash, cash equivalents and restricted cash of
$29.2 million, and total liquidity
(defined as cash equivalents and restricted cash, USDC, and the
fair market value of digital assets) of approximately $71.3 million, as of March
31, 2023.
- Total assets were $92.2 million
as of March 31, 2023. Shareholders'
equity amounted to $87.0 million as
of March 31, 2023.
- Adjusted EBITDA[1] was $1.5
million for the three-month period ended March 31, 2023.
- Adjusted earnings per share[2] was $0.01 for the three-month period ended
March 31, 2023.
Operational Highlights for the First Quarter 2023
- The Company earned 362.0 bitcoins during the quarter. Factors
impacting production included the Company's ongoing miner
deployment program, curtailment activities, and growth in the
overall bitcoin network hash rate.
- The Company paid approximately $0.046 per kilowatt hour to its hosting partners
for electricity consumed during the quarter.
- For the three months ended March 31,
2023, we earned 8.7 ETH in native staking and
23.0 rETH-h in Portara liquid staking, respectively.
- Treasury holdings of BTC and ETH were 724.8 and
9,136.2, with a fair market value of approximately $20.6 million and $16.6
million on March 31, 2023,
respectively.
- The BTC equivalent[3] of our digital asset holdings
as of March 31, 2023 (defined as if
all ETH, sETH-H, LsETH, and USDC holdings were
converted into BTC as of that date) was approximately 1,480.0 BTC,
or approximately $42.1 million.
- The Company owned 37,676 bitcoin miners and 730
ETH miners as of March 31,
2023, with an estimated maximum total hash rate of 2.6 EH/s
and 0.3 TH/s, respectively.
- The Company's active hash rate of its bitcoin
mining fleet was approximately 1.25 EH/s as of March 31, 2023.
- Approximately 85% of our fleet's run-rate electricity
consumption was generated from carbon-free energy sources as of
March 31, 2023. 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.
- On February 24, 2023, the Company
closed a strategic investment of $2
million in Auros Global Limited, which is a leading
crypto-native algorithmic trading and market making
firm that delivers best-in-class liquidity for exchanges and token
projects.
- On March 22, 2023, Bit Digital
announced a strategic realignment of its executive leadership team.
Effective March 31, 2023,
Bryan Bullett, the Company's Chief
Executive Officer, concluded his term as CEO and assumed the role
of Senior Advisor, in which he will lead strategic growth
initiatives for the Company. Sam
Tabar, previously the Company's Chief Strategy Officer, was
appointed CEO.
Subsequent Events
- On April 5, 2023, the Company
entered into an amended hosting agreement, pursuant to which
Coinmint agreed to provide to the Company an additional 10 MW of
mining capacity at Coinmint's hosting facility in Plattsburgh, New York.
- Additionally, the Company entered into an amended hosting
agreement with Coinmint on April 27,
2023, pursuant to which Coinmint agreed to provide the
Company with up to 10 MW of additional mining capacity at
Coinmint's hosting facility in Massena,
New York.
- On May 8, 2023, the Company
entered into a Master Mining Services Agreement Amendment with
Blockbreakers, pursuant to which Blockbreakers, Inc. agreed to
provide the Company with four MW of additional mining capacity at
its hosting facility in Canada.
The Company previously advanced a $400,000 Senior secured Term Loan to
Blockbreakers for the purposes of building out this site.
- On May 9, 2023, the Company
entered into a Computation Capacity Services Agreement Amendment
with GreenBlocks ehf ("GreenBlocks") pursuant to which GreenBlocks.
agreed to provide the Company with 8.25 megawatts of incremental
hosting capacity at a facility in Reykjanesbaer, Iceland.
- On April 28, 2023, we entered
into a purchase agreement for 3,600 S19 miners.
- On May 12, 2023, we entered into
a purchase agreement for 3,000 S19J Pro miners.
Management Commentary
"The first quarter of 2023 marked another pivotal milestone for
Bit Digital as the industry emerged from the depths of the downturn
and macro conditions became incrementally more favorable. Our focus
throughout 2022 was primarily on ensuring we maintained a strong
balance sheet and remained nimble to endure a potentially
protracted downturn. As we progress in 2023, we remain committed to
preserving our balance sheet while adopting a more opportunistic
approach to capitalize on compelling value propositions in the
market. Moving forward, we will continue to focus on what we can
control and setting the stage for long-term value creation for all
Bit Digital stakeholders.
We continue to make strong progress towards our goal for our
mining operations to become entirely carbon free. As of
March 31, 2023, our mining operations
were approximately 85% carbon-free, which is roughly flat from the
prior quarter. However, if you remove the contribution from one
hosting facility that we exited at the end of March from the
calculation, our fleet would have been powered by approximately 98%
carbon-free energy sources, and we expect to remain in that range
for Q2 and going forward.
Subsequent to quarter-end, Bit Digital finalized new hosting
agreements for more than 30 MW in aggregate with three separate
hosting partners. Importantly, these hosting sites all utilize
energy that is almost entirely carbon-free. We have executed a
series of opportunistic mining purchase orders to fill this
capacity, bringing us closer to our target of doubling our active
hash rate this year. Moving forward, we will continue to evaluate
strategic growth opportunities while prioritizing financial agility
throughout the entire digital asset cycle.
We are excited about our recent entry into the Icelandic market
which we announced in May 2023.
Diversifying our operations across geographies and jurisdictions is
a strategic focus for us, and we believe that Iceland's clean energy abundance and
supportive government policies provide an ideal environment for our
mining operations. Iceland is a
top priority for future expansion of our mining business.
We remain committed to expanding our proof-of-stake operations
and reaching our target to have approximately half of our digital
assets position actively staked. As a point of clarification, Bit
Digital stakes ETH for our own account and does not
offer staking services to individuals or enterprises. We believe
that staking and validating Ethereum is synergistic to
our bitcoin business and creates a 'flywheel effect'
whereby staking rewards can be compounded or redeployed. We remain
committed to both BTC and ETH and believe our strategy
provides exposure to the economics of the two leading digital
assets."
About Bit Digital
Bit Digital, Inc. is a sustainability focused generator of
digital assets headquartered in New York
City. Our mining operations are located in the US,
Canada, and Iceland. For additional information, please
contact ir@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 Annual Report on Form 20-F
for the fiscal year ended December 31,
2022. 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.
[1] Adjusted 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 items.
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[2] Adjusted EPS
is a financial measure defined as our EBITDA divided by our diluted
weighted-average shares outstanding, adjusted with the EPS impact
related to the adjustments made to EBITDA to derive Adjusted
EBITDA.
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[3] "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, sETH-H, LsETH,
and USDC, were converted into BTC as of March 31, 2023, and added
to our existing BTC balance. Conversion values are found using the
closing price on coinmarketcap.com.
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SOURCE Bit Digital, Inc.