Bit Digital, Inc. Announces Monthly Production Update for August 2024

Rhea-AI Summary

Bit Digital, Inc. (Nasdaq: BTBT) released its unaudited production update for August 2024. Key highlights include:

- $4.3 million in unaudited revenue from AI infrastructure services
- 53.4 BTC produced, an 11.7% decrease from the previous month
- Active hash rate of 2.43 EH/s as of August 31
- Treasury holdings: 682.4 BTC ($40.2M) and 27,331 ETH ($68.7M)
- Total liquidity of $216.5M, including $106.9M in cash and cash equivalents
- 21,568 ETH staked, earning a 3.1% APY and 56.6 ETH in rewards

The company issued a $579k service credit for downtime during an equipment upgrade. Bit Digital will participate in upcoming investment conferences in September.

Positive

• $4.3 million in unaudited revenue from AI infrastructure services in August 2024
• Active hash rate of 2.43 EH/s as of August 31, 2024
• Substantial digital asset holdings: 682.4 BTC ($40.2M) and 27,331 ETH ($68.7M)
• Strong liquidity position with $216.5 million, including $106.9M in cash
• 21,568 ETH actively staked, earning 3.1% APY and 56.6 ETH in rewards for August

Negative

• 11.7% decrease in BTC production compared to the previous month (53.4 BTC in August)
• $579k service credit issued for downtime during equipment upgrade

Insights

Financial Analyst

Bit Digital's August 2024 update reveals mixed results. The company's AI infrastructure segment generated $4.3 million in revenue, showcasing a promising new revenue stream. However, this was partially offset by a $579,000 service credit issued to a client. On the crypto mining front, BTC production decreased by 11.7% month-over-month to 53.4 BTC, indicating potential operational challenges or market headwinds.

The company's financial position remains strong with $106.9 million in cash and total liquidity of $216.5 million. Their diversified digital asset holdings, including 682.4 BTC and 27,331 ETH, provide a buffer against market volatility. The staking of 21,568 ETH at a 3.1% APY demonstrates a strategy to generate passive income from their crypto holdings. Overall, while facing some headwinds in mining, Bit Digital's diversification into AI and staking appears to be paying off.

Tech Expert

Bit Digital's transition into AI infrastructure is noteworthy, with 256 servers actively generating revenue. This diversification could prove important as the crypto mining landscape becomes increasingly competitive. The company's active hash rate of 2.43 EH/s is respectable but not industry-leading, suggesting room for growth or potential vulnerability to larger competitors.

The 11.7% decrease in BTC production is concerning and warrants further investigation. It could be due to increased network difficulty, equipment issues, or strategic decisions to allocate resources elsewhere. The staking of ETH is a smart move, leveraging Ethereum's transition to Proof-of-Stake. However, the 3.1% APY is relatively low compared to some other staking options, indicating a conservative approach that prioritizes security over maximum yield.

NEW YORK, Sept. 5, 2024 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York, announced its unaudited digital asset production, HPC services revenue, and corporate updates for the month of August 2024.

Corporate Highlights for August 2024

• The Company had 256 servers actively generating revenue from its initial Bit Digital AI contract, as of August 31, 2024. The Company earned approximately $4.3 million of unaudited revenue from this contract during the month of August 2024. A service credit of $579k related to the downtime experienced during an equipment upgrade was issued to the client in August for the period of February to June 2024.
• In August 2024, the Company produced 53.4 BTC, an 11.7% decrease compared to the prior month.
• The Company's active hash rate was approximately 2.43 EH/s as of August 31, 2024.
• Treasury holdings of BTC and ETH were 682.4 and 27,331.0 with a fair market value of approximately $40.2 million and $68.7 million, respectively, on August 31, 2024.
• The BTC equivalent^[1] of our digital asset holdings as of August 31, 2024, was approximately 1,858.3 or approximately $109.6 million.
• The Company had cash and cash equivalents of $106.9 million and total liquidity (defined as cash and cash equivalents, USDC, and the fair market value of digital assets) of approximately $216.5 million, as of August 31, 2024.

Proof-of-Stake Highlights

• The Company had approximately 21,568 ETH actively staked in native staking protocols as of August 31, 2024.
• Bit Digital earned a blended APY of approximately 3.1% on its staked ETH position for the month of August 2024.
• The Company earned aggregate staking rewards of approximately 56.6 ETH during August 2024.

Upcoming Events

• 2024 Annual Gateway Conference, San Francisco, CA on September 4-5
• H.C. Wainwright 26^th Annual Global Investment Conference, New York, NY on September 11-12

[1] "BTC equivalent" is a hypothetical illustration of the value of our digital asset treasury holdings 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 August 31, 2024, and added to our existing BTC balance. Conversion values are found using the closing price on coinmarketcap.com. Our digital asset portfolio excludes digital assets invested in a third-party managed fund.

About Bit Digital

Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. The Company has established a business line, Bit Digital AI, that offers specialized cloud-infrastructure services for artificial intelligence applications. For additional information, please contact ir@bit-digital.com or visit our website at 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, 2023. 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. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors.

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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SOURCE Bit Digital, Inc.

FAQ

How much revenue did Bit Digital (BTBT) generate from AI infrastructure in August 2024?

Bit Digital (BTBT) generated approximately $4.3 million in unaudited revenue from its AI infrastructure contract in August 2024.

What was Bit Digital's (BTBT) Bitcoin production in August 2024?

Bit Digital (BTBT) produced 53.4 BTC in August 2024, which was an 11.7% decrease compared to the previous month.

What was Bit Digital's (BTBT) active hash rate as of August 31, 2024?

Bit Digital's (BTBT) active hash rate was approximately 2.43 EH/s as of August 31, 2024.

How much ETH did Bit Digital (BTBT) have staked as of August 31, 2024?

Bit Digital (BTBT) had approximately 21,568 ETH actively staked in native staking protocols as of August 31, 2024.

What was Bit Digital's (BTBT) total liquidity as of August 31, 2024?

Bit Digital (BTBT) reported total liquidity of approximately $216.5 million as of August 31, 2024, including cash, cash equivalents, USDC, and the fair market value of digital assets.