Bit Digital, Inc. Announces Bitcoin Production and Mining Operations Update for the First Quarter of 2021

Rhea-AI Summary

Bit Digital, Inc. (Nasdaq: BTBT) reported its first-quarter 2021 bitcoin production, earning 1,013.40 bitcoins. As of March 31, 2021, the company's bitcoin treasury increased to 581.23 bitcoins, valued at approximately $29.92 million. The total number of miners owned rose to 40,965, achieving a maximum hash rate of 2,264.5 PH/s. The company is actively expanding its operations by purchasing additional miners and migrating operations to North America, with a total purchase of $21.09 million for 4,771 miners after the quarter end.

Positive

• Earned 1,013.40 bitcoins in Q1 2021.
• Treasury bitcoin holdings rose to 581.23 bitcoins, valued at approximately $29.92 million.
• Increased number of miners to 40,965 with a maximum hash rate of 2,264.5 PH/s.
• Acquired additional 4,771 miners for $21,091,966, expected to boost hash rate to 2,574 PH/s.

Negative

• None.

NEW YORK, April 29, 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 asset updates for the first quarter ended March 31, 2021.

Preliminary First Quarter 2021 Highlights

• The Company earned 1,013.40 bitcoins in the first quarter of 2021.
• Treasury holdings of bitcoin increased to 581.23, with a fair market value of approximately $29.92 million as of March 31, 2021.
• The Company owned 40,965 miners as of March 31, 2021, with a maximum total hash rate[1] of 2,264.5 PH/s, and made additional miner purchases subsequent to quarter end.

Bitcoin Production Update

In the first quarter of 2021, Bit Digital earned 1,013.40 newly minted bitcoins. The Company's quarterly bitcoin production since commencement of our mining operations was as follows:

Mining Assets Update

As of March 31, 2021, the Company owned 40,965 miners, with a total maximum hash rate of 2,264.5 PH/S, an increase from 2,253.5 PH/S as of December 31, 2021. The Company's fleet of owned miners comprised the following models:

Model	Owned as of March 31, 2021
MicroBT Whatsminer M21S	16,917
Bitmain Antminer T17	9,110
Bitmain Antminer S17+	7,025
MicroBT Whatsminer M20S	4,125
MicroBT Whatsminer M10	2,200
Bitmain Antminer T3	800
Bitmain Antminer T17+	256
Bitmain Antminer S19 Pro	205
Bitmain Antminer S17E	195
MicroBT Whatsminer M31S	100
Bitmain Antminer S17 Pro	32
Total	40,965

Miner Acquisitions

During the quarter, we purchased 100 Bitmain Antminer S19 Pro miners on the spot market. Subsequent to March 31, 2021, we purchased an additional 4,771 miners on the spot market, for a total purchase price of $21,091,966. These purchases will increase the Company's maximum hash rate to 2,574 PH/S. All of the newly purchased miners have been or will be deployed in North America. The newly purchased miners comprised 954 Whatsminer M20S, 261 Whatsminer M31S, 1,426 Bitmain Antminer S17, 1,800 Bitmain Antminer S17+, 280 Avalon A1246 and 50 VM V1 miners.

Miner Migration Update

The Company accelerated its strategy of migrating miners from China to North America. During the quarter, the Company completed the installation of an additional 2,920 miners in North America. Subsequent to quarter end, as of April 29, 2021, the Company had completed the installation of a further 3,496 miners in North America. An additional 2,130 miners are currently in transit or awaiting installation in North America. The following table represents our miner geographic locations as of April 29, 2021:

Miner Geographic Distribution as of April 29, 2021

Location	Number of Miners	Percentage of Total Miners
Canada	1,426	3.12%
United States	7,090	15.50%
China	35,090	76.72%
In transit to or awaiting installation in North America	2,130	4.66%
Total	45,736	100.00%

Management Commentary

"We made great progress continuing to scale our mining business in the first quarter of 2021, producing 1,013.40 bitcoins. Bit Digital today enjoys one of the largest currently owned and operating fleets of any US listed bitcoin mining company," said Bryan Bullett, Bit Digital's CEO. "We owned 40,965 miners, with a maximum hash rate of 2,264.5 PH/s as of March 31, 2021."

"We achieved this scale through our differentiated approach of spot market miner sourcing, and through entry into partnerships with valued hosting providers, to secure access to electricity and facilities at competitive rates. We also took advantage of opportunities to migrate our miners on a seasonal basis to opportunistically access lower-cost power, a material portion of which comes, on average, from renewable sources."

"Further, we have continued our globalization strategy, deploying additional miners in North America, where as of April 29, 2021, we owned 8,516 miners with a further 2,130 miners currently in transit or awaiting installation. Going forward, we intend to expand our presence in North America, and expect a growing portion of our fleet to be located here." 

About Bit Digital

Bit Digital, Inc. is a bitcoin mining company headquartered in New York City with one of the highest operating hash rates (or computing power) among all US listed bitcoin miners, and growing. Our operations are in the United States, Canada and China. For additional information, please contact Sam Tabar at sam@bit-digital.com or visit our  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 most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2020. 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. Additionally, all discussions of financial metrics assume mining difficulty rates as of March 2021. 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.

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[1] Actual operating hash rate will vary depending on network difficulty rate, total hash rate of the network, the operations of our facilities and the status of our miners.

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SOURCE Bit Digital, Inc.

FAQ

What were Bit Digital's bitcoin production results for Q1 2021?

Bit Digital produced 1,013.40 bitcoins in the first quarter of 2021.

How much bitcoin does Bit Digital currently hold?

As of March 31, 2021, Bit Digital held 581.23 bitcoins, valued at approximately $29.92 million.

How many miners does Bit Digital own?

Bit Digital owned 40,965 miners as of March 31, 2021.

What is Bit Digital's maximum hash rate?

The maximum hash rate for Bit Digital was 2,264.5 PH/s as of March 31, 2021.

What acquisitions did Bit Digital make after Q1 2021?

After Q1 2021, Bit Digital purchased an additional 4,771 miners for a total of $21,091,966.