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

Rhea-AI Summary

Bit Digital announced its June 2024 monthly production update, highlighting several key points. The company generated estimated unaudited revenue of $4.1 million from its initial Bit Digital AI contract, operating 256 revenue-generating servers.

Bit Digital produced 61.7 BTC, a 2.5% decrease compared to May 2024, with an active hash rate of approximately 2.57 EH/s. As of June 30, 2024, Bit Digital's treasury holdings included 585.9 BTC and 29,927.9 ETH, valued at $36.7 million and $102.7 million, respectively. The company's digital asset holdings were equivalent to approximately 2,230.5 BTC, valued at around $139.8 million.

Bit Digital reported cash and cash equivalents of $60.8 million and total liquidity of around $200.6 million. In its proof-of-stake operations, the company staked 17,184 ETH, earning a blended APY of 3.5% and generating approximately 49.8 ETH in rewards during June 2024.

Positive

• Generated $4.1 million in unaudited revenue from Bit Digital AI contract in June 2024.
• Maintained treasury holdings valued at $139.8 million as of June 30, 2024.
• Reported total liquidity of approximately $200.6 million.
• Earned 49.8 ETH in staking rewards with a blended APY of 3.5%.

Negative

• Produced 61.7 BTC, a 2.5% decrease compared to the prior month.

Insights

Financial Analyst

Bit Digital, Inc.'s June 2024 production update offers several key insights that retail investors should consider. The company reported an estimated $4.1 million in unaudited revenue from its Bit Digital AI contract, which shows the growth potential of its AI infrastructure alongside its traditional digital asset operations. While the 2.5% decrease in BTC production to 61.7 BTC may seem concerning, it should be understood within the industry context where such fluctuations are common due to varying mining difficulties and energy prices.

The company's hash rate remains strong at 2.57 EH/s, indicating that Bit Digital is maintaining substantial computing power in the competitive BTC mining industry. This high hash rate is a positive indicator of the company's ability to generate future BTC revenue.

Bit Digital's robust treasury holdings of 585.9 BTC and 29,927.9 ETH with a combined fair market value of $139.8 million suggest a strong balance sheet, providing the company with significant liquidity. This liquidity, totaling $200.6 million, is important for sustaining operations and potential investments in expanding mining or AI capacities.

For retail investors, these details collectively indicate the company's solid financial health and promising avenues for growth in both digital assets and AI sectors.

However, investors should remain cautious of the inherent volatility in BTC and ETH prices, which can significantly impact the company's revenue and asset values. Moreover, the unaudited nature of the reported revenue requires vigilance until confirmed by audited financials.

Market Research Analyst

The proof-of-stake (PoS) update from Bit Digital also deserves attention. The company has staked approximately 17,184 ETH in native staking protocols, earning a blended Annual Percentage Yield (APY) of 3.5% during June. These staking rewards added 49.8 ETH to the company’s holdings, demonstrating a successful diversification strategy within the crypto market. PoS allows Bit Digital to generate consistent returns without the high energy costs associated with traditional BTC mining.

Staking effectively aligns with the company’s strategy of building a sustainable infrastructure for digital assets. For retail investors, this indicates a forward-thinking approach that leverages different revenue streams within the crypto ecosystem. This can potentially mitigate risk and offer more stable income compared to solely relying on BTC mining, which is subject to greater volatility.

Nonetheless, investors should consider the relatively new nature of staking and the regulatory landscape for such activities, which could evolve and create new compliance challenges.

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

Corporate Highlights for June 2024

• The Company had 256 servers actively generating revenue from its initial Bit Digital AI contract, as of June 30, 2024. The Company earned an estimated $4.1 million of unaudited revenue from this contract during the month of June 2024.
• In June 2024, the Company produced 61.7 BTC, a 2.5% decrease compared to the prior month.
• The Company's active hash rate was approximately 2.57 EH/s as of June 30, 2024.
• Treasury holdings ^[1] of BTC and ETH were 585.9 and 29,927.9 with a fair market value of approximately $36.7 million and $102.7 million, respectively, on June 30, 2024.
• The BTC equivalent^[2] of our digital asset holdings as of June 30, 2024, was approximately 2,230.5 or approximately $139.8 million.
• The Company had cash and cash equivalents of $60.8 million and total liquidity (defined as cash and cash equivalents, USDC, and the fair market value of digital assets) of approximately $200.6 million, as of June 30, 2024.

Proof-of-Stake Highlights

• The Company had approximately 17,184 ETH actively staked in native staking protocols as of June 30, 2024.
• Bit Digital earned a blended APY of approximately 3.5% on its staked ETH position for the month of June 2024.
• The Company earned aggregate staking rewards of approximately 49.8 ETH during June 2024.

Upcoming Events

• EthCC Brussels on July 8-11
• H.C. Wainwright NDR on July 23-24
• Bitcoin Nashville 2024 on July 25-27

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] "Treasury holdings" excludes approximately 2,701 ETH that were transferred to an internally managed fund.

[2] "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 June 30, 2024, and added to our existing BTC balance. Conversion values are found using the closing price on coinmarketcap.com.

 

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SOURCE Bit Digital, Inc.

FAQ

What was Bit Digital's estimated revenue from its AI contract in June 2024?

Bit Digital earned an estimated $4.1 million of unaudited revenue from its initial Bit Digital AI contract in June 2024.

How many BTC did Bit Digital produce in June 2024?

Bit Digital produced 61.7 BTC in June 2024, which was a 2.5% decrease compared to the prior month.

What was Bit Digital's active hash rate as of June 30, 2024?

Bit Digital's active hash rate was approximately 2.57 EH/s as of June 30, 2024.

What were Bit Digital's treasury holdings in BTC and ETH as of June 30, 2024?

As of June 30, 2024, Bit Digital's treasury holdings included 585.9 BTC and 29,927.9 ETH, valued at $36.7 million and $102.7 million, respectively.

What was the total liquidity reported by Bit Digital as of June 30, 2024?

Bit Digital reported total liquidity of approximately $200.6 million as of June 30, 2024.

How much ETH did Bit Digital have staked as of June 30, 2024?

Bit Digital had approximately 17,184 ETH actively staked in native staking protocols as of June 30, 2024.

What was the blended APY for Bit Digital's staked ETH position in June 2024?

Bit Digital earned a blended APY of approximately 3.5% on its staked ETH position for the month of June 2024.

How much did Bit Digital earn in staking rewards in June 2024?

Bit Digital earned aggregate staking rewards of approximately 49.8 ETH in June 2024.