Bit Digital, Inc. enters into asset purchase agreements to acquire $13,903,088 worth of bitcoin miners with total hash power capacity of 1,000 Ph/s.
Bit Digital, Inc. (Nasdaq: BTBT) announced it has entered into asset purchase agreements to issue 4,344,711 shares at $3.20 per share, totaling $13,903,088 to acquire bitcoin miners. This acquisition will enhance the company’s hash power from 1,250 Ph/s to 2,250 Ph/s, increasing operational capacity significantly. Additionally, 2,000 M21 miners are scheduled to be shipped to the U.S. in November, expected to improve cost structure and bitcoin production. The CFO expressed optimism about revenue growth in Q4 2020 due to increased deployment of mining equipment.
- Increase in hash power capacity from 1,250 Ph/s to 2,250 Ph/s.
- Acquisition of bitcoin miners valued at $13,903,088.
- Expected increase in revenue and bitcoin production in Q4 2020.
- None.
NEW YORK, Nov. 11, 2020 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT), a Nasdaq listed Bitcoin mining company headquartered in New York announced that it had entered into asset purchase agreements with certain non-U.S. investors to issue an aggregate of 4,344,711 ordinary shares at the price of
Once the transaction closes, upon Nasdaq listing of the shares, the total hash power capacity of the Company will increase by approximately 1,000 Ph/s from 1,250 Ph/s to 2,250 Ph/s. The Company commenced the bitcoin mining business in February, 2020. By June 30, 2020, the Company had only 310 Ph/s hash power and by September 30, 2020, the hash power had increased to 1,250 Ph/s.
Also, the first batch of 2,000 M21s previously purchased is going to be shipped to the United States this November and is expected to be installed to the hosting facility by Compute North by the end of December 2020. With more miners being deployed to the North America facilities, it is expected to help the Company rebalance its cost structure and miner geological allocation and further help produce more Bitcoins.
"We are very pleased to announce these agreements to issue shares in exchange for bitcoin miners, which will further consolidate our position among listed companies in bitcoin mining industry in terms of the operating hash rate capacity. The revenue and the number of bitcoins earned of the Company are expected to have a continuous increase in 2020 Q4 with the new deployment of additional miners," Erke Huang, the Chief Financial Officer of the Company said. "The management of the Company will continue to seek to expand the scale of bitcoin mining through the purchase of the most economic efficient miners and diverse our miners' geological allocations to further reduce our utility cost and increase our profit margin. It is another big step for Bit Digital since the spin-off of our prior assets and to focus on our bitcoin mining business. With the extensive experience and highly effective execution under our management, the Company is growing fast and investors should have good confidence in both Bit Digital and Bitcoin Mining industry."
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, involve 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
What is the total value of the asset purchase agreements by Bit Digital?
How much will Bit Digital's hash power increase after the acquisition?
When are the new bitcoin miners expected to be installed?
How many shares is Bit Digital issuing for this acquisition?
What is the expected impact of the new deployment on Bit Digital's revenue?
