BETS Announces Calendar Year 2023 Mining Operation Results

Rhea-AI Summary

Bit Brother Limited (NASDAQ: BETS) announced its unaudited mining farm operation results for 2023, highlighting the mining of 136 bitcoins at Site 1, generating $6.2 million in revenue. The company also anticipates the commencement of operations at Site 2 in mid-January 2024, with an estimated monthly production of 12 BTC.

Insights

Market Research Analyst

The unaudited operational results released by Bit Brother Limited offer a snapshot into the company's performance within the burgeoning cryptocurrency mining sector. The announcement of 136 bitcoins mined in 2023, translating to $6.2 million in revenue, is a tangible metric for evaluating the company's productivity and market position. Furthermore, the $1 million in electricity savings and power management profits at Site 1 underscore the strategic advantage of Bit Brother's 'Hedged Electricity Price' agreement, particularly in a high-energy consumption industry where operational costs can significantly impact profitability.

The planned initiation of Site 2, with a projected monthly production of 12 BTC, indicates a calculated expansion that could potentially double the company's bitcoin production. Such an increase in output could have a considerable effect on the company's financial performance, provided that the bitcoin market remains favorable. However, it's essential to consider the volatility of cryptocurrency prices and regulatory uncertainties which could pose risks to projected revenues.

Financial Analyst

From a financial perspective, Bit Brother's reported revenue and cost-saving measures are critical indicators of the company's fiscal health. The hedged electricity pricing strategy mitigates the risk of fluctuating energy prices, which can be a significant concern for investors assessing the stability of returns in this high-risk industry. The expansion of operations to a third site with a 40MW capacity signals aggressive growth ambitions. This expansion, coupled with the consulting agreement with Cruxforce, LLC, suggests that Bit Brother is actively seeking to optimize its operations and leverage expertise to scale effectively.

Investors should monitor the company's ability to maintain or increase its bitcoin yield per megawatt as it scales, as this efficiency metric will be a key determinant of long-term profitability. Additionally, the CEO's forward-looking statement on the potential impact of the current bitcoin price trend on future achievements should be weighed against the backdrop of the cryptocurrency's historical price volatility.

Cryptocurrency Analyst

The provided operational results are a microcosm of the larger trends within the cryptocurrency mining industry, where scale and operational efficiency are paramount. Bit Brother's ongoing investment in mining infrastructure, such as the S19 miners for Site 2, reflects a commitment to maintaining competitiveness through technological advancements. The mention of 'persistent innovation and strategic investments' by the CEO implies a focus on adopting new technologies and potentially exploring alternative blockchain opportunities beyond bitcoin mining.

Understanding the nuances of the 'Hedged Electricity Price' agreement is crucial, as it suggests a sophisticated approach to managing one of the largest variable costs in crypto mining. This strategic move could serve as a hedge against potential future energy price volatility, which is a significant concern for the industry. Moreover, the anticipation of Site 3's development with a 40MW capacity is an ambitious plan that highlights the company's growth trajectory and its potential impact on the market share within the mining sector.

CHANGSHA, China, Jan. 15, 2024 /PRNewswire/ -- Bit Brother Limited (the "Company," "we", or "Bit Brother") (NASDAQ: BETS) announced its unaudited mining farm operation results for the calendar year 2023 ended December 31, 2023.

The Company currently operates two mining farms in the U.S. Site 1 at Clyde Texas started operations on January 17, 2023 and reached full 6MW capacity in last May after installing 1.5 MW miner servers. Site 2 at Abilene, Texas is expected to commence operation in mid-January 2024.

Highlights in 2023

• As of December 31, 2023, Site 1 has mined approximately 136 bitcoins, generating approximately $6.2 million in revenue based on the bitcoin price of last December.
• As of December 31, 2023, Site 1 generated approximately $1 million in electricity savings and power management profits through "Hedged Electricity Price" power supply agreement with a retail electricity provider (REP) within the jurisdiction of the Electric Reliability Council of Texas (ERCOT).

Strategic Layout for 2024

• Site 2 is anticipated to commence operation in mid-January 2024, with an estimated monthly production of 12 BTC from the initial batch of 3,300 S19 miners. Thus, Site 1 and Site 2 are expected to achieve combined monthly production of 24 BTC assuming the miners function normally.
• Bit Brother has entered into a consulting agreement with Cruxforce, LLC, aiming to find a mining farm with a maximum power supply capacity of 40MW for site 3.

"In 2024, we will further expand the scale of our mining operations and improve operating capacity and productions." CEO Jack Wu commented. "Assuming the current bitcoin price trend continues, we believe that we will attain even greater achievement in the realm of cryptocurrency through persistent innovation and strategic investments."

The Company seeks to provide as much transparency about its bitcoin mining operation as possible. The link below reflects bitcoins we have mined in real-time:

https://www.blockchain.com/explorer/addresses/btc/37frzvqQeAzf6hWj4J9zrEzZf4WJoo3sRR

These mining results do not include any financial results of the Company and do not address the Company's other, non-mining operations, such as the business management business. United States generally accepted accounting principles for cryptocurrency mining are complex, emerging and uncertain. Cryptocurrencies may not be recognized as cash or cash equivalents, and mining activities may not qualify for revenue recognition. Cryptocurrencies have no inherent value, are not legal tender recognized by any governmental entity, and might not be able to be converted into fiat currencies. Investors are advised not to place undue reliance on mining results alone, without considering other financial and non-financial metrics.

About Bit Brother Limited

Bit Brother Ltd is a multifaceted corporation with operations spanning business management in China and blockchain and cryptocurrency ventures in the United States. Within the U.S. jurisdiction, the company strategically manages and integrates cryptocurrency mining facilities. With a dedicated team of specialists, company is currently operating two mining farms in the U.S. and is committed to further growth of its blockchain and cryptocurrency operations. . For more information, please visit: www.bitbrother.com.

Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements." 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. You 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. These risks and uncertainties include, but not are limited to, the risk factors described by BETS in its filings with the Securities and Exchange Commission ("SEC"). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:

• Local government's policies and regulatory oversight of cryptocurrency mining operations and our other operations;
• BETS's cryptocurrency mining business is still under development, with many uncertainties in the future direction and integration of BETS's other business segments;
• Failure to manage the newly launched cryptocurrency mining business effectively;
• Failure to access a large quantity of power at reasonable costs could significantly increase BETS operating expenses and adversely affect demand for BETS's mining activities;
• Any significant or prolonged failure in the cryptocurrency mining facilities that BETS operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;
• Security breaches or alleged security breaches of our cryptocurrency mining servers could disrupt BETS operations and have a material adverse effect on its business, financial condition and results of operation; and
• Fluctuation of the crypto price;
• Other risks and uncertainties indicated in BETS's SEC reports or documents filed or to be filed with the SEC by BETS.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact: contactus@bitbrother.com, +86-0731-82290658

View original content:https://www.prnewswire.com/news-releases/bets-announces-calendar-year-2023-mining-operation-results-302034283.html

SOURCE Bit Brother Limited

FAQ

How many bitcoins were mined at Site 1 in 2023?

Approximately 136 bitcoins were mined at Site 1 in 2023.

What was the revenue generated from bitcoin mining in 2023?

Approximately $6.2 million in revenue was generated from bitcoin mining in 2023.

When is Site 2 expected to commence operations?

Site 2 is expected to commence operations in mid-January 2024.

What is the estimated monthly production of Site 2?

The estimated monthly production of Site 2 is 12 BTC.

What consulting agreement has Bit Brother entered into?

Bit Brother has entered into a consulting agreement with Cruxforce, LLC to find a mining farm for site 3 with a maximum power supply capacity of 40MW.

Who commented on the company's plans for 2024?

CEO Jack Wu commented on the company's plans for 2024, aiming to expand the scale of mining operations and improve operating capacity and productions.

What is the ticker symbol for Bit Brother Limited?

The ticker symbol for Bit Brother Limited is BETS.