NEW
YORK, Aug. 15, 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 second
quarter ended June 30, 2023.
Financial Highlights for the Second Quarter 2023
- Total revenue was $9.0 million
for the second quarter of 2023. The majority of revenue was earned
from our bitcoin mining business.
- The Company had cash, cash equivalents and restricted cash of
$19.8 million, and total liquidity
(defined as cash equivalents and restricted cash, USDC, and the
fair market value of digital assets) of approximately $64.8 million, as of June
30, 2023.
- Total assets were $100.4 million
as of June 30, 2023. Shareholders'
equity amounted to $91.7 million as
of June 30, 2023.
- Adjusted EBITDA[1] was $1.9
million for the three-month period ended June 30, 2023.
- Adjusted earnings per share[2] was $0.02 for the three-month period ended
June 30, 2023.
Operational Highlights for the Second Quarter 2023
- The Company earned 318.4 bitcoins during the quarter. Factors
impacting production included the relocation of certain miners,
curtailment activities, and growth in the overall
bitcoin network hash rate.
- The Company paid approximately $0.049 per kilowatt hour to its hosting partners
for electricity consumed during the quarter.
- For the three months ended June 30,
2023, we earned 36.3 ETH in native staking and
31.6 ETH in liquid staking, respectively.
- Treasury holdings of BTC and ETH were 613.2 and
11,738.8, with a fair market value of approximately $18.7 million and $22.7
million on June 30, 2023,
respectively.
- The BTC equivalent[3] of our digital asset holdings
as of June 30, 2023 was approximately
1,573.4 BTC, or approximately $48.0
million.
- As of June 30, 2023, the Company
had 44,886 bitcoin miners owned or operating (in
Iceland) and 730 ETH
miners, with an estimated maximum total hash rate of 3.4 EH/s and
0.3 TH/s, respectively.
- The Company's active hash rate of its bitcoin
mining fleet was approximately 1.78 EH/s as of June 30, 2023.
- Approximately 99% of our fleet's run-rate electricity
consumption was generated from carbon-free energy sources as of
June 30, 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.
- The Company had approximately 11,716 ETH actively
staked in native and liquid staking protocols as of June 30, 2023. Approximately 9,312 were natively
staked and 2,404 ETH were deployed in liquid staking
protocols as of that date.
- 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
megawatts ("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 MW of incremental hosting
capacity at a facility in Iceland.
On June 1, 2023, Bit Digital revised
its agreement with GreenBlocks to expand the Company's mining
capacity in Iceland to
approximately 10.7 MW. As of the date of this report, advances of
$6.4 million have been financed by
the Company to GreenBlocks, and approximately 3,300 miners are
operational at the GreenBlocks site.
- In May 2023, the Company
transferred a total of 129 BTC to Auros Global Limited ("Auros"),
as collateral to support yield optimization strategies which Auros
is undertaking on the Company's behalf. By June 30, 2023, 84 BTC remained collateralized
with Auros. We received 45 BTC back on July
28, 2023, and anticipate the release of the remaining 39 BTC
on or about August 28, 2023.
- During the quarter, the Company entered into agreements to
purchase 3,600 S19 miners and 3,300 S19J Pro+ miners.
Management Commentary
"The second quarter of 2023 was a transitional quarter for Bit
Digital as we exited certain legacy hosting relationships, forged
new strategic partnerships, and began to execute on our growth
initiatives. As of June 30, 2023, our
mining operations were approximately 99% carbon-free, a significant
improvement from the prior quarter and nearly achieving our goal
for our mining operations to become entirely carbon-free. We
continue to believe that our industry can only reach its full
potential if we remain leaders in environmental sustainability, and
Bit Digital intends to lead by example.
We expanded existing hosting relationships and forged new
partnerships during the quarter, which represented approximately 35
MW of additional mining capacity. We concurrently announced the
purchase of new miners to fill this capacity and continue to canvas
the market for attractive opportunities to deploy capital and
expand our fleet. We expect to reach our 2.6 EH/s goal for our
active fleet by the end of October
2023, and we now expect to reach 3.5 EH/s by the end of
December 2023. Our balance sheet
remains debt-free, and we maintain a healthy liquidity position. We
will continue to balance future growth aspirations with our goal of
remaining financially flexible into the 'halving' in 2024.
We are proud to have expanded into the Icelandic market during
the second quarter, and now have operations across three countries:
the U.S., Canada, and Iceland. Diversifying our operations across
geographies and regulatory jurisdictions is a strategic priority as
we seek to mitigate existential risk. Diversification will remain a
key tenet of our growth strategy alongside securing the most
economic and ecofriendly hosting arrangements.
Revenue from our ETH staking business more than
doubled sequentially during the quarter, albeit from a low base.
Although ETH staking revenue currently represents a
modest source of revenue, our goal is for this business to grow
into a more meaningful driver of total revenue in the longer term.
We aim to establish diversified, non-correlated revenue streams
that will help make us more resilient to market cycles and enable
us to pursue counter-cyclical growth opportunities. We will
continue to evaluate new avenues to help achieve our goal of
creating a more durable return profile and ultimately maximizing
value for all stakeholders."
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, rETH-h, and USDC,
were converted into BTC as of June 30, 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.