Bit Digital, Inc. Announces Fiscal Year 2022 Financial Highlights
Financial Highlights for Fiscal Year 2022
- Total revenue was
for the fiscal year 2022.$32.3 million - For the year ended
December 31, 2022 , we recognized revenue of and$31.4 million from bitcoin mining services and ETH mining services, respectively.$0.9 million - The Company had cash, cash equivalents and restricted cash of
, and total liquidity (defined as cash equivalents and restricted cash, USDC and digital assets) of approximately$34.0 million , as of$62.2 million December 31, 2022 . - Net loss was
, or$(105.3) million per share for the twelve-month period ended$(1.34) December 31, 2022 . Net loss includes a impairment of fixed assets charge and a$(50.0) million impairment of digital assets charge.$(24.7) million
Operational Highlights for Fiscal Year 2022
- The Company earned 1,247.5 bitcoins during the year.
- The Company generated 294.3 ETH during the year from mining activities.
Bit Digital suspended the ETH mining operations bySeptember 2022 due to Ethereum blockchain switching from proof-of-work ("PoW") consensus mechanism to proof-of-stake ("PoS") validation. Treasury holdings of BTC and ETH were 946.3 and 8,799.9, with a fair market value of approximately and$15.7 million on$10.5 million December 31, 2022 , respectively.- The BTC equivalent[1] of our digital asset holdings as of
December 31, 2022 (defined as if all ETH, sETH-H, and USDC holdings were converted into BTC as of that date and added to our BTC holdings) was approximately 1,765.6 BTC, with a fair market value of approximately as of that date.$29.2 million - The Company owned 37,676 bitcoin miners and 730 Ethereum miners as of
December 31, 2022 , with an estimated maximum total hash rate of 2.6 EH/s and 0.3 TH/s, respectively. - The Company's active hash rate of its bitcoin mining fleet was approximately 1.23 EH/s as of
December 31, 2022 . - Approximately
85% of our fleet's run-rate electricity consumption was generated from carbon-free energy sources as ofDecember 31, 2022 , compared to67% as ofDecember 31, 2021 . These figures are based on data provided by our hosts, publicly available sources, and internal estimates, demonstrating our commitment to sustainable practices in the digital asset mining industry. - As of
June 30, 2022 , the Company had received the entirety of its previously announced 10,000-unit miner purchase fromBitmain Technologies Limited . The Company currently has no outstanding payment obligations for miner purchases. - During the second quarter of 2022, 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. - During the third quarter of 2022, the Company finalized an agreement with
Blockbreakers Inc. for 5 megawatts of incremental hosting capacity to power its miners. The facility is located inCanada and primarily utilizes hydroelectric energy. - The Company sold 1,106 MicroBT Whatsminer M21S miners and 9 MicroBT Whatsminer M20S miners and wrote off 1 Innosilicon A10 series ETH miner during fiscal year 2022.
Subsequent Events
- On
March 22, 2023 ,Bit Digital announced a strategic realignment of its executive leadership team. EffectiveMarch 31, 2023 ,Bryan Bullett , the Company's Chief Executive Officer, concluded his term as CEO and assumed the role of Senior Advisor, in which he will lead strategic growth initiatives for the Company.Sam Tabar , previously the Company's Chief Strategy Officer, was appointed CEO on this date. - On
April 5, 2023 , the Company entered into an amended hosting agreement, pursuant to whichCoinmint agreed to provide to the Company an additional ten MW of mining capacity.
Strategic Priorities for Fiscal Year 2023
- Maintain a best-in-class balance sheet: Continued focus on prudent balance sheet management through 2023 and beyond.
- Strategically deploy capital:
Bit Digital targets doubling its operating fleet, to approximately 2.6 EH/s, during 2023. Additionally, the Company intends to continue evaluating and opportunistically deploy capital in the form of debt and/or alternative credit products in mining-related opportunities. - Expand into PoS: The Company targets staking approximately half of its total digital asset position.
Bit Digital is also exploring incubating additional PoS related businesses. - Enhance treasury management solutions: Existing and prospective strategic partnerships that can activate structured solutions that may enhance yield on treasury assets and provide downside protection.
- Continued focus on sustainability: Advancing the Company's goal of becoming entirely carbon-free.
Management Commentary
"2022 was a pivotal year for
Prudent capital allocation and balance sheet management enabled
Our goal for 2023 is to double our active hash rate to approximately 2.6 EH/s. To achieve this goal, we intend to opportunistically acquire new-gen ASICs. Our view has been that ASIC market conditions would progressively favor buyers and are ready to capitalize on that trend.
Deteriorating market conditions in 2022 impelled us to take a cautious approach towards our fleet deployment program. A portion of our fleet is comprised of legacy ASICs that we are less inclined to activate on long-term hosting contracts against current bitcoin prices. Our current plan is to high-grade our bitcoin fleet and prioritize activating the most efficient machines, while viewing the legacy component of our fleet as an option to increase our active hash rate should conditions warrant. However, we remain mindful of the upcoming 'halvening' in 2024 and will continue to carefully balance our growth and fleet deployment strategy with our goal of remaining nimble in various market conditions. Our enhanced treasury management solutions, including our recent strategic investment in Auros Global, carry the goal of making our company less susceptible to volatility in digital asset prices.
The average price for electricity we paid during 4Q 2023 was approximately
We commenced our Ethereum staking strategy during 2022 and believe that our PoS initiatives will grow into a more meaningful earnings driver for
Our diversification into Ethereum has also helped advance our overall sustainability goals, given that Ethereum's transition to a proof-of-stake consensus mechanism reduced the network's energy consumption by over
About
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
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of
[1] "BTC equivalent" is a hypothetical illustration of the value of our digital asset portfolio in bitcoin terms. BTC equivalent is defined as if all non-BTC digital assets, comprised of ETH and USDC, were converted into BTC as of |
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