Bit Digital, Inc. Announces the Third Quarter of Fiscal Year 2020 Financial Results
NEW YORK, Dec. 18, 2020 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) (the "Company"), an emerging bitcoin mining company headquartered in New York, U.S. today announced its unaudited financial results for the third quarter ended September 30, 2020.
Financial Highlights for the Third Quarter 2020
- Revenue from bitcoin mining business was $7.91 million.
- The number of bitcoins earned from bitcoin mining business was 739.51.
- The number of miners was 22,869, with 16,964 miners acquired in the third quarter 2020.
- The net income from continuing operations of $0.10 million was all from bitcoin mining business, compared to $nil for the third quarter 2019.
- The net loss from discontinued operations was $0.10 million for the third quarter 2020, as we disposed of peer-to-peer and car rental business in the PRC, compared with the net loss from discontinued operations of $1.22 million for the third quarter 2019.
- The net income was $54 and the earnings per share was $0.00 for the third quarter 2020, compared with $3.0 million and $0.20 for the same period last year.
Financial Highlights for the Nine Months 2020
- Revenue from bitcoin mining business was $8.60 million.
- The number of bitcoins earned from bitcoin mining business was 814.23.
- The number of miners was 22,869, all miners acquired in the nine months 2020.
- The net loss from continuing operations of $0.73 million was all from bitcoin mining business, compared to $1.79 million for the nine months 2019.
- The net loss from discontinued operations was $3.83 million for the nine months 2020, as we provided full impairment on assets for our discontinued peer-to-peer and car rental business in the PRC, compared with the net loss from discontinued operations of $7.68 million for the nine months 2019.
- The net loss was $4.56 million and the loss per share was $0.18 for the nine months 2020, compared with $9.47 million and $0.63 for the same period last year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included elsewhere in this prospectus. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. See "Disclosure Regarding Forward-Looking Statements" for a discussion of the uncertainties, risks, and assumptions associated with these statements. Actual results and the timing of events could differ materially from those discussed in our forward-looking statements as a result of many factors, including those set forth under "Risk Factors" and elsewhere in this prospectus.
Overview
We commenced our bitcoin mining business from February 2020. On September 14, 2020, the Company officially changed its name from "Golden Bull Limited" to "Bit Digital, Inc.", which the management believes more closely reflects the Company's bitcoin mining business. We had already changed our Nasdaq trading symbol to "BTBT".
On April 8, 2020, we acquired the XMAX Chain Limited, a wholly owned subsidiary based in Hong Kong.
On September 1, 2020, we established Bit Digital USA, Inc. ("BT USA"), a wholly owned subsidiary incorporated in Delaware, United States, through which we intend to operate bitcoin mining business with our miners in the United States. In September, we commenced trial operation with 100 units of M21s miners under operation in Texas, United States.
On September 17, 2020, BT USA entered into a certain agreement with Compute North LLC, an industry leader in large-scale computing infrastructure, headquartered in Minnesota, U.S. Pursuant to the service agreement, Compute North would provide bitcoin mining colocation services in their Nebraska data center facility as well as handle the management of the mining equipment for the Company's bitcoin mining business, which is expected to save the Company operating utilities and rent cost. Going forward, we expect to have more miners operating in the United States. The first batch of 2,000 M21s miners purchased in the third quarter has been shipped to the United States in November and is expected to be installed to the hosting facility by Compute North by the end of December 2020.
As of September 30, 2020, our hash rate reached 1,250 Ph/s. In December 2020, we closed an asset acquisition of 17,996 bitcoin miners with total hash rate of 1,003.5 Ph/s, worth of $13,902,742, at a consideration of issuance of an aggregate of 4,344,711 common shares, par value $0.01 per share, at a per share price of $3.20. The closing of the acquisition increased the Company's total hash rate by approximately 1,003.5 Ph/s, from 1,250 Ph/s to 2,253.5 Ph/s. The average energy efficiency of these miners is 47.45 (+/-5%) joules per terahash (J/TH). With these miners being fully deployed, the total energy efficiency is expected to be decreased from 61.88 (+/-5%) J/TH to 55.33 (+/-5%) by 10.59%, consuming 124 megawatts of power. The total 17,996 miners acquired in December 2020 were comprised of 7,025 Antminer S17+, 9,110 Antminer T17, 195 Antminer S17E, 32 Antminer S17Pro, 105 Antminer S19Pro, 1,429 Whatsminer M20S and 100 Whatsminer M31S.
As of the date of this Report, we had a total of 40,865 miners, including 7,025 Antminer S17+, 195 Antminer S17E, 32 Antminer S17Pro, 105 Antminer S19Pro, 800 Antminer T3, 9,110 Antminer T17, 256 Antminer T17+, 2,200 Whatsminer M10, 4,125 Whatsminer M20S, 16,917 Whatsminer M21S and 100 Whatsminer M31S, spreading over Xinjiang, Inner Mongolia and Sichuan Provinces, PRC and Texas and Nebraska in the United States.
By the report date, we have earned an aggregation of 1,331.2 bitcoins and recognized unaudited revenues of approximately $16.50 million.
Number of Bitcoins Received
As of November 30, 2020, and September 30, 2020, we had 122 and 60 bitcoins on hand. The following table presents our bitcoin mining activities in coins as of November 30, 2020 and September 30, 2020.
Number |
Amounts |
|||||||
Balance at January 1, 2020 |
- |
$ |
- |
|||||
Receipt of cryptocurrencies from mining services |
814 |
8,602,226 |
||||||
Sales of cryptocurrencies |
(754) |
(7,934,446) |
||||||
Realized loss on sale of cryptocurrencies |
- |
(15,753) |
||||||
Balance at September 30, 2020 |
60 |
$ |
652,027 |
|||||
Receipt of cryptocurrencies from mining services |
405 |
|||||||
Sales of cryptocurrencies |
(343) |
|||||||
Balance at November 30, 2020 |
122 |
Disposition of peer-to-peer lending business and the car rental business in the PRC
On September 8, 2020, the Board approved the disposal of Point Cattle Holdings Limited, a former wholly owned subsidiary of the Company in the British Virgin Islands, and its subsidiaries and VIEs, through which the Company previously operated its peer-to-peer lending business and the car rental business in PRC. Upon the sale, we discontinued our peer-to-peer lending business and the car rental business in the PRC ("discontinued operations"). In addition to our bitcoin mining business, we expect to operate our car rental business through Golden Bull USA, Inc., a wholly owned subsidiary based in the United States once the Coronavirus pandemic is curtailed.
On the same date, the Company entered into a certain share purchase agreement (the "Disposition SPA") by and among a BVI company, Sharp Whale Limited (the "Purchaser"), Point Cattle Holding Limited (the "Subsidiary") and the Company (the "Seller"). Pursuant to the Disposition SPA, the Purchaser purchased the Subsidiary in exchange for nominal consideration of $10.00 and other good and valuable consideration.
COVID-19
In March 2020, the World Health Organization declared the COVID-19 outbreak (COVID-19) a global pandemic. We operate in locations that have been impacted by COVID-19, and the pandemic has impacted and could further impact our operations and the operations of our customers as a result of quarantines, various local, state and federal government public health orders, facility and business closures, and travel and logistics restrictions. Conditions may improve or worsen as governments and businesses continue to take actions to respond to the risks of the COVID-19 pandemic. While the COVID-19 pandemic continues to cause uncertainty in the global economy and restrictive measures by governments and businesses remain in place, we expect our business and results of operations to be materially and adversely affected. Company is actively monitoring this situation and the possible effects on its financial condition, liquidity, operations, suppliers, and industry.
Beginning in the middle of March, the outbreak of COVID-19 led to adverse impacts on the U.S. and global economies, bringing uncertainty to our operations and customer demand. Various local governments issued orders requiring the closure of non-essential businesses and to curtail all unnecessary travel, and requiring individuals to comply with various shelter-in-place and social distancing orders. We however experienced positive growth from our efforts in investment in miners together with continuous increase in bitcoin market price as investors presented increasing confidence in bitcoins.
Additionally, we have evaluated the potential impact of the COVID-19 outbreak on our financial statements, including, but not limited to, the impairment of long-lived assets and valuation of cryptocurrencies. We have concluded that our long lived assets are not impaired. Where applicable, we have incorporated judgments and estimates of the expected impact of COVID-19 in the preparation of the financial statements based on information currently available. These judgments and estimates may change, as new events develop and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known.
We plan to continue to invest in our bitcoin mining business. In December 2020, we closed an asset acquisition of bitcoin miners with total hash rate of 1,003.5 Ph/s, worth of $13,902,742 which increased the Company's total hash rate by approximately 1,003.5 Ph/s, from 1,250 Ph/s to 2,253.5 Ph/s. With miners transferred to the United Stated, the COVID situation continued to place travel difficulties. The US operations are heavily dependent on our partners.
We continue to actively monitor the situation and may take further actions that alter our operations and business practices as may be required by federal, state or local authorities or that we determine are in the best interests of our partners, customers, suppliers, vendors, employees and shareholders. While the disruption is currently expected to be temporary, the extent to which the COVID-19 outbreak will further impact the Company's financial results will depend on future developments, which are unknown and cannot be predicted, including the duration and ultimate scope of the pandemic, advances in testing, treatment and prevention, as well as actions taken by governments and businesses.
Results of operations
Results of Operations for the Three Months Ended September 30, 2020 and 2019
The following table summarizes the results of our operations during the three months ended September 30, 2020 and 2019, respectively, and provides information regarding the dollar and percentage increase or (decrease) during period.
For the three months |
Variance |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Revenue from cryptocurrency mining |
$ |
7,909,528 |
$ |
- |
$ |
7,909,528 |
>100 |
% |
||||||||
Cost and operating expenses |
||||||||||||||||
Cost of revenues |
(6,210,712) |
- |
(6,210,712) |
>100 |
% |
|||||||||||
Depreciation and amortization expenses |
(1,171,151) |
- |
(1,171,151) |
>100 |
% |
|||||||||||
General and administrative expenses |
(405,705) |
(1,787,384) |
1,381,679 |
(77.3) |
% |
|||||||||||
Total operating expenses |
(7,787,568) |
(1,787,384) |
(6,000,184) |
335.7 |
% |
|||||||||||
Income (Loss) from operations |
121,960 |
(1,787,384) |
1,909,344 |
(106.8) |
% |
|||||||||||
Other income (expenses) |
||||||||||||||||
Realized loss on exchange of cryptocurrencies |
(21,721) |
- |
(21,721) |
>100 |
% |
|||||||||||
Total other expense, net |
(21,721) |
- |
(21,721) |
>100 |
% |
|||||||||||
Income (loss) before income taxes |
100,239 |
(1,787,384) |
1,887,623 |
(105.6) |
% |
|||||||||||
Income tax expenses |
- |
- |
- |
0 |
% |
|||||||||||
Net income (loss) from continuing operations |
100,239 |
(1,787,384) |
1,887,623 |
(105.6) |
% |
|||||||||||
Net loss from discontinued operations |
(100,185) |
(1,220,441) |
1,120,256 |
(91.8) |
% |
|||||||||||
Net income (loss) |
$ |
54 |
$ |
(3,007,825) |
$ |
3,007,879 |
(100.0) |
% |
Revenues
We commenced our bitcoin mining business in February 2020. We generated revenues from provision of computing power to the digital asset mining pool, and the consideration was in the form of cryptocurrencies, the value of which is determined using the market price of the related cryptocurrency at the time of receipt. Providing computing powers to successfully add a block to the blockchain, the Company is entitled to a fractional share of the fixed cryptocurrency from the mining pool operator, which is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm.
For the three months ended September 30, 2020, we received 739.51 bitcoins from one mining pool operator by providing computing power in our 22,869 miners (including 800 units Innosilicon T3 miners, 256 Bitmain T17+ miners, 2,200 MicroBT M10 Miners, 2,696 MicroBT M20S miners and 16,817 MicroBT M21S miners) and as of September 30, 2020, our has rate was 1,250 Peta-has per second (Ph/s). For the three months ended September 30, 2020, we recognized revenue of $7,909,528. For the three months ended September 30, 2019, we did not generate revenues from continuing operations.
We will continue to invest in the miners to increase the hash rate capacity, as a percentage of total computing power contributed by all mining pool participants. Our mining operations are distributed in Xinjiang, Inner Mongolia and Sichuan Provinces PRC, and in Nebraska and Texas, United States which was newly launched in September 2020.
In December 2020, we closed an asset acquisition of 17,996 bitcoin miners with total hash rate of 1,003.5 Ph/s, worth of $13,902,742, at a consideration of issuance of an aggregate of 4,344,603 ordinary shares, par value $0.01 per share, at a per share price of $3.20. The closing of the acquisition increased the Company's total hash rate by approximately 1,003.5 Ph/s, from 1,250 Ph/s to 2,253.5 Ph/s. The acquired miners were comprised of 7,025 Antminer S17+, 9,110 Antminer T17, 195 Antminer S17E, 32 Antminer S17Pro, 105 Antminer S19Pro, 1,429 Whatsminer M20S, 100 Whatsminer M31S. The average energy efficiency of these miners is 47.45 (+/-5%) joules per terahash (J/TH). With these miners being deployed, the total energy efficiency will be decreased from 61.88 (+/-5%) J/TH to 55.33 (+/-5%) by 10.59%.
As a result, we expect a continued significant increase in revenue for the fourth quarter of fiscal 2020. Also, with more miners operating in the United States, we expect our energy cost to decrease on an overall basis.
Cost of revenues
Cost of revenues of $6,210,712 for the three months ended September 30, 2020 was primarily comprised of direct production cost of the mining operations, including utilities and other service charges, but excluding depreciation and amortization expenses which are separately presented. As of September 30, 2020, we had 22,769 miners under operation in Inner Mongolia, PRC and Sichuan Province, PRC and 100 miners in Texas, U.S., where provided utility access aggregating 76 megawatts to our miners for the three months ended September 30, 2020.
For the three months ended September 30, 2019, we did not incur cost of revenues from continuing operations.
We expect to have a sharp increase in cost of revenues in the fourth quarter of fiscal year 2020 as we would launch an additional 17,996 units of miners in the December 2020. In addition, we continue to focus on expansion and upgrade of our miners, and the increase in cost of revenues is expected to be in line with the increase of our revenues.
Depreciation and amortization expenses
For the three months ended September 30, 2020, the depreciation and amortization expenses represented depreciation of 22,869 miners with an estimated useful life of 3 years.
For the three months ended September 30, 2019, we did not incur depreciation and amortization expenses from continuing operations.
General and administrative expenses
For the three months ended September 30, 2020, our general and administrative expenses were primarily comprised of professional and consulting expenses of $246,518, office expenses of $34,436, payroll expenses of $56,405 and travel expenses of $50,490.
For the three months ended September 30, 2019, our general and administrative expenses were primarily comprised of amortization of stock compensation for consulting services of $1,760,000 and office expenses of $27,384.
Realized loss on exchange of cryptocurrencies
We recorded cryptocurrencies are recorded at cost and any gains or losses from sales of cryptocurrencies are recorded as "Realized gain/(loss) on exchange of cryptocurrencies" in the unaudited condensed consolidated statements of operations. For the three months ended September 30, 2020, we recorded a loss of $21,721 from sales of 695.72 bitcoins.
Net loss from discontinued operations
For the three months ended September 30, 2020, our net loss from discontinued operations was comprised of a net loss of $100,185 from classification of accumulated translation adjustments, compared to a net loss from discontinued operations of $1,220,441 for the same period ended September 30, 2019.
Income tax expenses
Income tax expenses was $nil and $nil for the three months ended September 30, 2020 and 2019, respectively, as we incurred net operating losses for the nine months ended September 30, 2020 and 2019, respectively.
Net loss and loss per share
For the three months ended September 30, 2020, our net loss was comprised of net income of $100,239 derived from our bitcoin mining business and net loss of $100,185 from our disposed peer-to-peer lending business and car rental business in China ("discontinued operations"); compared to a net loss of $3,007,825 for the same period of last year, derived from $1,787,384 from our continuing business, and $1,220,441 from our discontinued operations.
Income per share was $0.00 and loss per share was $0.20 for the three months ended September 30, 2020 and 2019, respectively. Weighted average number of shares was 42,297,011 and 15,399,185 for the three months ended September 30, 2020 and 2019, respectively.
Results of Operations for the Nine Months Ended September 30, 2020 and 2019
The following table summarizes the results of our operations during the nine months ended September 30, 2020 and 2019, respectively, and provides information regarding the dollar and percentage increase or (decrease) during period.
For the nine months |
Variance |
||||||||||||||||||
2020 |
2019 |
Amount |
% |
||||||||||||||||
Revenue from cryptocurrency mining |
$ |
8,602,226 |
$ |
- |
$ |
8,602,226 |
>100 |
% |
|||||||||||
Cost and operating expenses |
|||||||||||||||||||
Cost of revenues |
(6,866,726) |
- |
(6,866,726) |
>100 |
% |
||||||||||||||
Depreciation and amortization expenses |
(1,241,652) |
- |
(1,241,652) |
>100 |
% |
||||||||||||||
General and administrative expenses |
(1,202,274) |
(1,787,384) |
585,110 |
(32.7) |
% |
||||||||||||||
Total operating expenses |
(9,310,652) |
(1,787,384) |
(7,523,268) |
420.9 |
% |
||||||||||||||
Loss from operations |
(708,426) |
(1,787,Get the next $BTBT alert in real time by email NEW YORK, Sept. 5, 2024 /PRNewswire/ -- Bit Digital, Inc. (NASDAQ:BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York, announced its unaudited digital asset production, HPC services revenue, and corporate updates for the month of August 2024.
Corporate Highlights for August 2024
The Company had 256 servers actively generating revenue from its initial Bit Digital AI contract, as of August 31, 2024. The Company earned approximately $4.3 million of unaudited revenue from this
H.C. Wainwright & Co., LLC, a full-service investment bank dedicated to providing corporate finance, strategic advisory, and equity research coverage to public and private companies across multiple sectors and regions, is pleased to announce the following keynote speakers and Bitcoin Mining Panel as part of its 26th Annual Global Investment Conference, September 9-11, 2024 at the Lotte New York Palace Hotel.
Vivek Ramaswamy, Founder, Roivant Sciences, Ltd. (NASDAQ:ROIV); Co-Founder, Strive Asset Management; Partner, QVT Financial LP; and former U.S. presidential candidate will deliver his keynote address at 4:00 p.m. Eastern Time on Monday, September 9.
On Tuesday, September 10, preemin NEWPORT BEACH, Calif., Aug. 20, 2024 (GLOBE NEWSWIRE) -- Gateway Group ("Gateway"), a leading financial communications and digital media advisory firm, today announced the presenting company lineup for the Artificial Intelligence (AI), Blockchain, and Digital Infrastructure Track at the 2024 Gateway Conference. Scheduled for Thursday, September 5th, the presentation format will showcase seven innovative publicly traded companies at the forefront of the technology sector at the Four Seasons Hotel in San Francisco. Featured CompaniesThe AI, Blockchain, and Digital Infrastructure Track will include presentations from: Applied Digital Corporation (NASDAQ:APLD) - A designer, builder, and oper 6-K - Bit Digital, Inc (0001710350) (Filer) 6-K - Bit Digital, Inc (0001710350) (Filer) CT ORDER - Bit Digital, Inc (0001710350) (Filer) Bit Digital's (NYSE:BTBT) short percent of float has risen 14.44% since its last report. The company recently reported that it has 22.86 million shares sold short, which is 19.1% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.52 days to cover their short positions on average.
Why Short Interest Matters
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Short selling is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest NEW YORK, March 17, 2022 /PRNewswire/ -- The fastest smart contracts platform on the blockchain, Avalanche Foundation just announced "Multiverse", an incentive program of up to $290 million (4 million AVAX tokens) to help grow "subnets" on its network. The incentive program aims to create scalable chains to support Defi, NFT, and blockchain games on Avalanche. With this launch, Avalanche competes with rivals Cosmos and Polkadot, blockchain operators that already offer similar functionality. Synergies between CeFi, DeFi, gaming, and NFTs provide a tremendous opportunity for WonderFi Technologies (NEO:WNDR) (OTCPK:WONDF), Coinbase Global (NASDAQ:COIN), Bit Digital Inc (NASDAQ:BTBT), DMG Blockc NEW YORK, Feb. 24, 2022 /PRNewswire/ -- Bit Digital (NASDAQ: BTBT), a leading digital mining company headquartered in New York City with facilities across North America, today announced that the Company has appointed Cameron Schnier as Head of Investor Relations. He will report to Chief Strategy Officer Sam Tabar while overseeing investor relations activities, corporate marketing events, and liaising with equity research coverage.
Cameron Schnier joined Bit Digital in February 2022 with over a decade of experience in the financial sector. Prior to joining Bit Digital, Mr. Sch NEW YORK, Nov. 17, 2021 /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 third quarter ended September 30, 2021.
Preliminary Third Quarter 2021 Highlights
We completed our fleet's exit from China. As of the date of this press release, 100% of our fleet had arrived in North America. As of September 30, 2021, we had no miners remaining in China: 79.1% of our miner fleet was already deployed or awaiting installation in North America, and 20.9% was in transit. The Company owned 27,744 miners as of September 30, 2021, with an estimat SC 13G/A - Bit Digital, Inc (0001710350) (Subject) SC 13G - Bit Digital, Inc (0001710350) (Subject) SC 13G - Bit Digital, Inc (0001710350) (Subject) Northland Capital initiated coverage of Bit Digital with a rating of Outperform and set a new price target of $6.00 HC Wainwright & Co. initiated coverage of Bit Digital with a rating of Buy and set a new price target of $14.00 NEW YORK, Aug. 12, 2024 /PRNewswire/ -- Bit Digital, Inc. (NASDAQ:BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York, announced today that it will release its Second Quarter 2024 results on Monday, August 19, 2024, after the stock market closes. Senior management will host a live webcast and conference call to review the results on Tuesday, August 20, 2024, at 10 a.m. ET.
To register for the earnings call, please click here. Additionally, participants can join the confere NEW YORK, May 15, 2024 /PRNewswire/ -- Bit Digital, Inc. (NASDAQ:BTBT) (the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York City, today announced its unaudited financial results for the First Quarter ended March 31, 2024.
Financial Highlights for the First Quarter of 2024
Total revenue was $30.3 million for the First Quarter of 2024, a 266% increase compared to the First Quarter of 2023. The increase was primarily driven by the commencement of our Bit Digital AI business and by a h NEW YORK, May 8, 2024 /PRNewswire/ -- Bit Digital, Inc. (NASDAQ:BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York, announced today that it will release its First Quarter 2024 results on Wednesday, May 15, 2024, after the stock market closes. Senior management will host a live webcast and conference call to review the results on Thursday, May 16, 2024, at 10 a.m. ET.
To register for the earnings call, please click here. Additionally, participants can join the conference c |