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 six months ended June 30, 2020.
“We commenced our bitcoin mining business in February 2020. By now, our hash rate capacity reached 1,250 Peta-hash per second (“Ph/s”), and the management has determined that the Company, in terms of the operating hash rate capacity, is the first among NASDAQ listed companies in bitcoin mining industry.” said Mr. Hong Yu, the Chief Strategy Officer of the Company. “We are and we will make continuous investments in improving our hash rate capacity to keep our competitiveness in the industry.”
“The bitcoin mining business is a challenge and an opportunity to the Company. We performed comprehensive evaluation, planning and design on the new business before we got started.” said Mr. Erke Huang, the Chief Financial Officer of the Company. “For the first half 2020, we had revenue of $0.69 million from our bitcoin mining business with hash rate capacity of 310 Ph/s. With the deployment of additional miners, we expect to make a dramatic increase in revenues in the second half 2020 with our continuous investments in miners and hash rate.”
Financial Highlights for the First Half 2020
- Revenue from bitcoin mining business was $0.69 million.
- The number of bitcoins earned from bitcoin mining business was 74.72.
- The number of miners was 6,004 MicroBT M21S, of which 3,429 and 2,575 miners were acquired in May and June 2020, respectively.
- The net loss from continuing operations of $0.37 million was all from bitcoin mining business, compared to $nil for the first half 2019.
- The net loss from discontinued operations was $3.73 million for the first half 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 $6.46 million for the first half 2019.
- The net loss was $4.10 million and the loss per share was $0.24 for the first half 2020, compared with $6.46 million and $0.43 for the same period last year.
On April 8, 2020, we acquired the XMAX Chain Limited, a wholly owned subsidiary based in Hong Kong. In the third quarter 2020, we launched additional 16,765 units of miners in Xinjiang, Inner Mongolia and Sichuan Provinces, all in the PRC.
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 miners under operation in Texas, United States.
On September 17, 2020, BT USA entered into a certain agreement with Compute North LLC headquartered in Nebraska U.S. Pursuant to the service agreement, Compute North would provide bitcoin mining facilities for the colocation and managing of mining equipment of the Company’s bitcoin business which are expected to save the Company operating utilities and rent cost. Going forward, we expect more miners operating in the Unites States.
As of the date of this report, we had a total of 22,869 miners under operations. As of September 30, 2020, our hash rate reached 1,250 Ph/s. At full deployment of our 22,869 miners, our hash rate capacity reached 1,250 Ph/s, with the aggregate mining efficiency of 61.88 joules per terahash (J/TH), consuming 76 MW of power. By the report date, we have earned an aggregation of 949.51 bitcoins and recognized unaudited revenues of approximately $10.08 million.