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

Rhea-AI Summary

Bit Digital, a sustainable platform for digital assets and AI infrastructure, reported its unaudited financial and operational results for May 2024.

The company generated $4.2 million in revenue from 256 servers under its initial Bit Digital AI contract. However, Bitcoin production dropped by 47% to 63.3 BTC, largely due to the April halving event. The active hash rate was 2.54 EH/s, impacted by voluntary curtailment.

Bit Digital's treasury holdings included 1,038.4 BTC and 20,508.3 ETH, with a fair market value totaling $147.7 million. The company maintained cash and cash equivalents of $47.3 million, and total liquidity of $195 million.

Proof-of-Stake activities yielded 45.8 ETH in rewards with a blended annual percentage yield of 3.1% on staked ETH.

Upcoming events include Bitcoin Prague 2024, Singular Research Summer Solstice Conference, and others scheduled in June.

Positive

• Generated $4.2 million in revenue from AI contract in May 2024.
• Treasury holdings had a fair market value of $147.7 million.
• Maintained cash and cash equivalents of $47.3 million.
• Total liquidity stood at $195 million.
• Earned 45.8 ETH from staking rewards with a 3.1% APY.

Negative

• Bitcoin production dropped by 47% to 63.3 BTC in May 2024.
• Active hash rate decreased to 2.54 EH/s due to voluntary curtailment.

Insights

Financial Analyst

Bit Digital's May 2024 production update provides various key metrics that are relevant to investors, particularly those focused on cryptocurrency and blockchain technology sectors. First, the decrease in Bitcoin production by 47% due to the reduction in Bitcoin block rewards post-halving event is a significant data point. This reduction aligns with industry expectations post-halving, which typically leads to lower immediate mining rewards but potentially higher future Bitcoin prices due to decreased supply.

Second, the company's unaudited revenue of $4.2 million from its initial AI contract signals a diversification beyond traditional cryptocurrency mining. This diversification is important in mitigating risks associated with the volatility of cryptocurrency markets. Investors should monitor whether this new revenue stream can sustain or grow over time, providing a buffer against crypto market fluctuations.

Third, the active hash rate reduction to 2.54 EH/s indicates voluntary curtailment actions. This could be viewed as a strategic move to manage operational costs in an environment where mining profitability can suddenly decrease due to external events like the halving. Investors should consider whether this strategy balances short-term revenue impacts with long-term operational sustainability.

Additionally, the company's substantial treasury holdings of BTC and ETH, valued at approximately $147.7 million, along with total liquidity of $195 million, showcase a strong financial position. This liquidity provides a cushion to weather market volatility and indicates prudent financial management.

The proof-of-stake (PoS) operations highlight a blended APY of 3.1% on staked ETH, translating to aggregate staking rewards of approximately 45.8 ETH. This PoS revenue is relatively modest but should be viewed as a complementary income stream that leverages existing digital assets to generate additional returns.

NEW YORK, June 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 May 2024.

Corporate Highlights for May 2024

• The Company had 256 servers actively generating revenue from its initial Bit Digital AI contract, as of May 31, 2024. The Company earned an estimated $4.2 million of unaudited revenue from this contract during the month of May 2024.
• In May 2024, the Company produced 63.3 BTC, a 47% decrease compared to the prior month. The decrease was predominantly due to the reduction of bitcoin block rewards following the April halving event.
• The Company's active hash rate was approximately 2.54 EH/s as of May 31, 2024. The decrease from the prior month was driven by voluntary curtailment activity.
• Treasury holdings^[1] of BTC and ETH were 1,038.4 and 20,508.3 with a fair market value of approximately $70.1 million and $77.1 million, respectively, on May 31, 2024.
• The BTC equivalent^[2] of our digital asset holdings as of May 31, 2024, was approximately 2,188.9, or approximately $147.7 million.
• The Company had cash and cash equivalents of $47.3 million, and total liquidity (defined as cash and cash equivalents, USDC, and the fair market value of digital assets) of approximately $195.0 million, as of May 31, 2024.

Proof-of-Stake Highlights

• The Company had approximately 17,184 ETH actively staked in native staking protocols as of May 31, 2024.
• Bit Digital earned a blended APY of approximately 3.1% on its staked ETH position for the month of May 2024.
• The Company earned aggregate staking rewards of approximately 45.8 ETH during May 2024.

Upcoming Events

• Bitcoin Prague 2024 on June 13-15^th
• Singular Research Summer Solstice Conference on June 20^th
• Northland Growth Conference 2024 on June 25^th
• Noble Capital Markets Emerging Growth Consumer / Entertainment / Media Virtual Conference on June 26-27^th

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 May 31, 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 revenue from the AI contract in May 2024?

Bit Digital generated $4.2 million in revenue from its initial AI contract in May 2024.

How much Bitcoin did Bit Digital produce in May 2024?

Bit Digital produced 63.3 BTC in May 2024, a 47% decrease compared to the previous month.

What is Bit Digital's hash rate as of May 31, 2024?

Bit Digital's active hash rate was approximately 2.54 EH/s as of May 31, 2024.

What are Bit Digital's treasury holdings as of May 31, 2024?

Bit Digital held 1,038.4 BTC and 20,508.3 ETH, with a total fair market value of $147.7 million as of May 31, 2024.

How much liquidity did Bit Digital have as of May 31, 2024?

Bit Digital had total liquidity of approximately $195 million as of May 31, 2024.

What was Bit Digital's staking reward in May 2024?

Bit Digital earned 45.8 ETH from staking rewards with a blended APY of 3.1% in May 2024.