Bit Digital, Inc. Announces Second Quarter of Fiscal Year 2022 Financial Results – QNT Press Release

NEW YORK, Aug. 30, 2022 /PRNewswire/ — Bit Digital, Inc. (NASDAQ:BTBT) (the “Company”), a digital asset mining company headquartered in New Yorktoday announced its unaudited financial results for the second quarter ended June 30, 2022.

Financial Highlights for the Second Quarter 2022

  • Bitcoin mining revenue was $6.5 million for the second quarter of 2022. Revenue from Ethereum mining was $0.3 million
  • The Company had cash, cash equivalents and restricted cash of $45.6 millionand total liquidity (defined as cash and digital assets) of approximately $72.6 millionas of June 30, 2022.Total assets were $179.0 million as of June 30, 2022. Shareholders’ equity amounted to $172.0 million as of June 30, 2022.
  • Non-GAAP loss* from operations was $0.8 million.
  • Non-GAAP net income** was $0.1 millionor $0.00 earnings per share.

* Non-GAAP loss from operations excludes the impact of depreciation of property and equipment, and share-based compensation expense.

** Non-GAAP net income excludes depreciation of property and equipment, share-based compensation expense, impairment of digital assets, gain from disposal of property and equipment, gain from sale of investment securities, and gain from sale of a subsidiary.

Operational Highlights for the Second Quarter 2022

  • The Company earned 197.28 bitcoins and 104.29 ETH during the quarter. Factors impacting production included the Company’s ongoing miner redeployment program, previously announced interruptions to certain hosting partners’ operations, growth in the overall bitcoin network hash rate, and the number of days in the quarter .
  • Treasury holdings of BTC and ETH were 860.57 and 313.56, with a fair market value of approximately $15.3 million and $0.3 million on June 30, 2022respectively.
  • The Company owned 38,135 bitcoin miners and 731 Ethereum miners as of June 30, 2022with an estimated maximum total hash rate of 2.7 EH/s and 0.3 TH/s, respectively.
  • In the second quarter, the Company signed a hash rate swap agreement pursuant to which the Company received miners rated at 0.625 EH/s in exchange for miners at 0.5 EH/s delivered from the Company to the counterparty, a 25% boost in favor of the Company.
  • As of June 30, 2022the Company had received the previously announced 10,000-unit miner purchase from Bitmain. The Company currently has no outstanding payment obligations for miner purchases.
  • During the second quarter, the Company signed a new 20 MW hosting agreement with Coinmint LLC (“Coinmint”). All of this capacity has been delivered as of the date of this Report. The Coinmint facility utilizes power that is reported to be 90% emissions-free.
  • Subsequent to quarter end, the Company announced that it had finalized an agreement for 5 megawatts of incremental hosting capacity to power its miners. The facility is located in Canada and utilizes an energy source that is primarily hydroelectric.
  • Approximately 69% of our fleet’s run-rate electricity consumption was generated from carbon-free energy sources as of June 30, 2022based 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 sold 903 MicroBT Whatsminer M21S bitcoin miners and 9 MicroBT Whatsminer M20S bitcoin miners during the quarter.

Management Commentary

“In the second quarter of 2022, we managed to modestly increase bitcoin production on a sequential basis despite the previously announced interruptions to certain hosting partners’ operations. Fortunately, our team is well versed when it comes to overcoming logistical hurdles. Our rapid response included signing a new hosting agreement with Coinmint for 20 MW of primarily carbon-free power and executing a hash rate swap agreement with another miner which provided for a 25% boost to our swapped hash rate. These actions helped propel our active hash rate to 1.06 EH /s by early July, which is nearly double where our active hash rate stood prior to the interruptions at the end of April.

Subsequent to quarter end, we also announced a new 5 MW hosting agreement with a provider in Canada at a location that is primarily hydro powered. The relatively small size speaks to our strategy of diversifying hosting to minimize site and counterparty risk. Importantly, this agreement not only advances our goal of becoming entirely carbon-free but is also expected to help reduce our weighted average cost of power.

The price of bitcoin decreased substantially during the second quarter, reducing industrywide margins, and forcing difficult decisions across the industry. Fortunately, our balance sheet remains strong, partially insulating us from short-term price movements and enabling us to advance our long-term vision . We ended the quarter with $45 million in cash, over $70 million in total liquidity, zero debt, and no outstanding miner purchase obligations. This provides us ample flexibility to continue deploying miners and canvas the market for opportunistic purchases at potentially distressed pricing.”

Non-GAAP Financial Measures

We are providing supplemental financial measures for (i) non-GAAP income from operations and (ii) non-GAAP net income. These supplemental financial measures are not measurements of financial performance under US GAAP and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe that these non-GAAP financial measures are also useful to investors and analysts in comparing our performance across reporting periods on a consistent basis.

The following is a reconciliation of non-GAAP income (loss) from operations, which excludes the impact of (i) depreciation of property and equipment, and (ii) share based compensation expenses, to its most directly comparable GAAP measures for the periods indicated :

For the
Three Months Ended
June 30,

For the

Six Months Ended

June 30,





Reconciliation of non-GAAP (loss)
income from operations:

(Loss) Income from Operations









Depreciation and amortization expenses



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