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

Rhea-AI Summary

Bit Digital (Nasdaq: BTBT) released its unaudited production update for July 2024. The company's AI infrastructure generated an estimated $4.3 million in revenue from 256 active servers. Bitcoin production slightly decreased to 60.5 BTC, with an active hash rate of 2.46 EH/s. Treasury holdings included 641.8 BTC and 27,274.4 ETH, valued at $41.5 million and $88.1 million, respectively. The total liquidity stood at $211.9 million, including $82.1 million in cash and cash equivalents. In its proof-of-stake operations, Bit Digital had 17,184 ETH staked, earning a 3.3% APY and 47.5 ETH in staking rewards for July. The company is set to participate in the 2024 Annual Gateway Conference in September.

Positive

• AI infrastructure generated $4.3 million in estimated revenue for July 2024
• Strong liquidity position with $211.9 million in total liquidity
• Significant crypto holdings: 641.8 BTC and 27,274.4 ETH
• 17,184 ETH actively staked, earning 3.3% APY

Negative

• 1.9% decrease in Bitcoin production compared to the previous month

Insights

Financial Analyst

Bit Digital's July 2024 update reveals a mixed performance. The company's AI initiative generated an impressive $4.3 million in unaudited revenue, showcasing strong potential in this diversification strategy. However, Bitcoin production slightly decreased by 1.9% to 60.5 BTC, indicating potential challenges in mining operations.

The company's financial position appears robust with $82.1 million in cash and total liquidity of $211.9 million. This strong liquidity provides a buffer against market volatility and potential for strategic investments. The substantial holdings of 641.8 BTC and 27,274.4 ETH, valued at $129.8 million, demonstrate significant exposure to crypto market movements.

Bit Digital's staking activities, with 17,184 ETH staked at a 3.3% APY, provide a steady, albeit modest, income stream. This diversified approach to revenue generation could help mitigate risks associated with mining operations.

Crypto Market Analyst

Bit Digital's performance reflects the broader crypto market trends. The slight decrease in BTC production might be attributed to increased network difficulty or potential operational issues. However, the company's substantial crypto holdings position it well to benefit from potential market upswings.

The company's venture into AI infrastructure is particularly noteworthy. Generating $4.3 million from AI-related activities in a single month signals a promising diversification strategy, potentially reducing reliance on volatile crypto mining revenues.

The staking of 17,184 ETH is a prudent move, providing a steady income stream. However, the 3.3% APY is relatively low compared to some DeFi platforms, suggesting a conservative approach prioritizing security over yield maximization. This strategy aligns with the company's position as a publicly traded entity, balancing risk and reward.

NEW YORK, Aug. 6, 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 and corporate updates for the month of July 2024.

Corporate Highlights for July 2024

• The Company had 256 servers actively generating revenue from its initial Bit Digital AI contract, as of July 31, 2024. The Company earned an estimated $4.3 million of unaudited revenue from this contract during the month of July 2024.
• In July 2024, the Company produced 60.5 BTC, a 1.9% decrease compared to the prior month.
• The Company's active hash rate was approximately 2.46 EH/s as of July 31, 2024.
• Treasury holdings of BTC and ETH were 641.8 and 27,274.4 with a fair market value of approximately $41.5 million and $88.1 million, respectively, on July 31, 2024.
• The BTC equivalent^[1] of our digital asset holdings as of July 31, 2024, was approximately 2,009.0 or approximately $129.8 million.
• The Company had cash and cash equivalents of $82.1 million and total liquidity (defined as cash and cash equivalents, USDC, and the fair market value of digital assets) of approximately $211.9 million, as of July 31, 2024.

Proof-of-Stake Highlights

• The Company had approximately 17,184 ETH actively staked in native staking protocols as of July 31, 2024.
• Bit Digital earned a blended APY of approximately 3.3% on its staked ETH position for the month of July 2024.
• The Company earned aggregate staking rewards of approximately 47.5 ETH during July 2024.

Upcoming Events

• 2024 Annual Gateway Conference, San Francisco, CA on September 4-5

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.

[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 July 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.

  

 

 

 

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SOURCE Bit Digital, Inc.

FAQ

How much revenue did Bit Digital's AI infrastructure generate in July 2024?

Bit Digital's AI infrastructure generated an estimated $4.3 million in revenue from 256 active servers in July 2024.

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

Bit Digital produced 60.5 BTC in July 2024, which was a 1.9% decrease compared to the previous month.

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

As of July 31, 2024, Bit Digital had approximately 17,184 ETH actively staked in native staking protocols.

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

Bit Digital's total liquidity, including cash, cash equivalents, USDC, and the fair market value of digital assets, was approximately $211.9 million as of July 31, 2024.