BIT Mining Limited Announces Unaudited Financial Results for the Third Quarter ended September 30, 2023
- None.
- None.
Cryptocurrency Business Progress
BIT Mining has four primary business segments: self-mining, mining pool, data center operation, and mining machine manufacturing. The Company is pursuing its development strategy to focus on cryptocurrency mining operations globally.
Mining Machine Manufacturing
We continue to advance our development of the next generation of 7nm BTC mining machines. Our strategic ally, Chain Reaction, a semiconductor company focused on disruptive blockchain and privacy hardware, has developed an ASIC based on their EL3CTRUM ASIC solution. We are working through the ASIC validation process while completing the hash board to increase hash rates. However, due to the technical complexities of ASIC validation, we anticipate a delay in the mining machines' system design timeline.
Self-mining
As of today, the total hash rate capacity of our DOGE/LTC mining machines in operation is approximately 27,211.0 GH/s. For the three months ended September 30, 2023, we produced 45.4 million DOGE and 16,962.1 LTC from our DOGE/LTC cryptocurrency mining operations and recognized revenue of approximately
Due to declines in cryptocurrency markets since the second half of 2022, we have suspended the operation of certain types of BTC mining machines. Considerable uncertainty persists in the market despite the recent modest recovery and narrow growth in cryptocurrency asset prices. Facing this current environment, we remain determined to improve our quality and efficiency. As of today, the total hash rate capacity of our BTC mining machines in operation is approximately 122.27 PH/s. For the three months ended September 30, 2023, we produced 11.5 BTC from our BTC cryptocurrency mining operations and recognized revenue of approximately
Mining Pool
Affected by the fluctuation in cryptocurrency prices in the third quarter of 2023, our mining pool business revenue slightly decreased from
Data Center Operation
During the third quarter of 2023, our 82.5 megawatt space (the "82.5 Megawatt Space") at the Ohio Mining Site recognized approximately
"Amid the cryptocurrency industry's uneven recovery, we were pleased to deliver continued sequential improvement in our topline for the third quarter of 2023," said Xianfeng Yang, CEO of BIT Mining. "Our growing data center operations propelled the increase in revenue. Furthermore, we are proactively reallocating resources and exploring initiatives to improve overall operating efficiency and profitability. Going forward, we will remain dedicated to diversifying revenue streams, enhancing efficiency and optimizing our operations to create value for all of our stakeholders."
Third Quarter 2023 Highlights
- Revenues were
US for the third quarter of 2023, representing a significant decrease of$77.0 million US from$20.0 million US for the third quarter of 2022 and an increase of$97.0 million US from$2.9 million US for the second quarter of 2023.$74.1 million - Operating loss was
US for the third quarter of 2023, representing a significant decrease of$3.7 million US million from$27.1 US for the third quarter of 2022 and an increase of$30.8 million US from$2.2 million US million for the second quarter of 2023.$1.5 - Non-GAAP operating loss1 was
US for the third quarter of 2023, compared with non-GAAP operating loss of$3.7 million US for the third quarter of 2022, and non-GAAP operating loss of$11.5 million US for the second quarter of 2023.$1.5 million - Net loss attributable to BIT Mining was
US for the third quarter of 2023, compared with net loss attributable to BIT Mining of$4.4 million US for the third quarter of 2022, and net loss attributable to BIT Mining of$19.4 million US for the second quarter of 2023.$0.9 million - Non-GAAP net loss1 attributable to BIT Mining was
US for the third quarter of 2023, compared with non-GAAP net loss attributable to BIT Mining of$3.6 million US for the third quarter of 2022, and non-GAAP net loss attributable to BIT Mining of$0.2 million US for the second quarter of 2023.$1.2 million - Basic and diluted losses per American Depositary Share ("ADS")2 attributable to BIT Mining Limited for the third quarter of 2023 were
US .$0.39 - Non-GAAP basic and diluted losses per ADS2 attributable to BIT Mining Limited for the third quarter of 2023 were
US .$0.32
1 Non-GAAP financial measures exclude the impact of impairment of intangible assets, impairment of property and equipment, and changes in fair value of derivative instruments. Reconciliations of non-GAAP financial measures to |
2 The Company changed the ratio of ADSs to its Class A ordinary shares (the "ADS Ratio"), par value |
Third Quarter 2023 Financial Results
Revenues
Revenues were
Operating Costs and Expenses
Operating costs and expenses were
Cost of revenue was
Sales and marketing expenses were
General and administrative expenses were
Service development expenses were
Net Gain on Disposal of Cryptocurrency Assets
Net gain on disposal of cryptocurrency assets was
Impairment of Cryptocurrency Assets
Impairment of cryptocurrency assets was
Impairment of Property and Equipment
Impairment of property and equipment was nil for the second and third quarters of 2023 and was
Impairment of Intangible Assets
Impairment of intangible assets was nil for the second and third quarters of 2023 and was
Operating Loss
Operating loss was
Non-GAAP operating loss was
Net Loss Attributable to BIT Mining
Net loss attributable to BIT Mining was
Non-GAAP net loss attributable to BIT Mining was
Cash and Cash Equivalents, Restricted Cash and Short-term Investment
As of September 30, 2023, the Company had cash and cash equivalents of
Cryptocurrency Assets
As of September 30, 2023, the Company had cryptocurrency assets of
3 Restricted cash represents deposits in merchant banks yet to be withdrawn. |
4 Short-term investment represents fixed coupon notes with original maturities of greater than three months but less than a year. |
About BIT Mining Limited
BIT Mining (NYSE: BTCM) is a leading technology-driven cryptocurrency mining company, with a long-term strategy to create value across the cryptocurrency industry. Its business covers cryptocurrency mining, mining pool, data center operation and mining machine manufacturing. The Company owns the world's top blockchain browser BTC.com and the comprehensive mining pool business operated under BTC.com, providing multi-currency mining services including BTC, ETC, DOGE and LTC. The Company also owns a 7-nanometer cryptocurrency mining machine manufacturer, Bee Computing, enabling the Company's self-efficiency through vertical integration with its supply chain.
Safe Harbor Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
About Non-GAAP Financial Measures
As a supplement to net loss, we use the non-GAAP financial measure of adjusted net loss which is
For more information:
BIT Mining Limited
ir@btcm.group
ir.btcm.group
www.btcm.group
Piacente Financial Communications
Brandi Piacente
Tel: +1 (212) 481-2050
Email: BITMining@thepiacentegroup.com
BIT Mining Limited | ||||||
Condensed Consolidated Balance Sheets | ||||||
(Amounts in thousands of | ||||||
(Unaudited) | ||||||
December 31, | September 30, | |||||
US$ | US$ | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 5,448 | 2,641 | ||||
Restricted cash | 126 | 125 | ||||
Short-term investment | 2,360 | - | ||||
Accounts receivable | 4,120 | 3,772 | ||||
Prepayments and other current assets | 8,310 | 13,102 | ||||
Cryptocurrency assets | 14,972 | 15,285 | ||||
Total current assets | 35,336 | 34,925 | ||||
Non-current assets: | ||||||
Property and equipment, net | 27,220 | 25,400 | ||||
Intangible assets, net | 3,314 | 2,353 | ||||
Deposits | 2,387 | 2,462 | ||||
Long-term investments | 8,049 | 6,344 | ||||
Right-of-use assets | 4,135 | 4,056 | ||||
Long-term prepayments and other non-current assets | 6,363 | 72 | ||||
Total non-current assets | 51,468 | 40,687 | ||||
TOTAL ASSETS | 86,804 | 75,612 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | 23,425 | 24,041 | ||||
Accrued payroll and welfare payable | 819 | 63 | ||||
Accrued expenses and other current liabilities | 5,155 | 4,193 | ||||
Income tax payable | 73 | 72 | ||||
Operating lease liabilities - current | 1,367 | 1,462 | ||||
Total current liabilities | 30,839 | 29,831 | ||||
Non-current liabilities: | ||||||
Operating lease liabilities - non-current | 2,837 | 2,593 | ||||
Total non-current liabilities | 2,837 | 2,593 | ||||
TOTAL LIABILITIES | 33,676 | 32,424 | ||||
Shareholders' equity: | ||||||
Class A ordinary shares, par value | 54 | 54 | ||||
Class A preference shares, par value | - | - | ||||
Class B ordinary shares, par value | - | - | ||||
Additional paid-in capital | 620,807 | 621,561 | ||||
Treasury shares | (21,604) | (21,604) | ||||
Accumulated deficit and statutory reserve | (542,169) | (552,379) | ||||
Accumulated other comprehensive loss | (3,960) | (4,444) | ||||
Total shareholders' equity | 53,128 | 43,188 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 86,804 | 75,612 |
BIT Mining Limited | |||||||||
Condensed Consolidated Statements of Comprehensive Loss | |||||||||
(Amounts in thousands of | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
September 30, | June 30, | September 30, | |||||||
US$ | US$ | US$ | |||||||
Revenues | 96,987 | 74,065 | 77,017 | ||||||
Operating costs and expenses: | |||||||||
Cost of revenue | (105,299) | (72,943) | (75,843) | ||||||
Sales and marketing expenses | (174) | (131) | (115) | ||||||
General and administrative expenses | (4,575) | (4,634) | (4,248) | ||||||
Service development expenses | (799) | (328) | (111) | ||||||
Total operating costs and expenses | (110,847) | (78,036) | (80,317) | ||||||
Other operating income | 232 | 209 | - | ||||||
Government grant | 18 | - | - | ||||||
Other operating expenses | - | - | (995) | ||||||
Net gain on disposal of cryptocurrency assets | 4,574 | 3,923 | 1,754 | ||||||
Impairment of cryptocurrency assets | (2,494) | (1,697) | (1,205) | ||||||
Impairment of property and equipment | (11,747) | - | - | ||||||
Impairment of intangible assets | (7,539) | - | - | ||||||
Operating loss | (30,816) | (1,536) | (3,746) | ||||||
Other income (expense), net | 7,946 | 317 | (5) | ||||||
Interest income | 19 | 2 | 200 | ||||||
Gain from equity method investments | 5 | 8 | - | ||||||
Gain from disposal of subsidiaries | 3,340 | - | - | ||||||
Changes in fair value of derivative instruments | - | 275 | (808) | ||||||
Loss before income tax | (19,506) | (934) | (4,359) | ||||||
Income tax benefits | - | - | - | ||||||
Net loss | (19,506) | (934) | (4,359) | ||||||
Less: Net loss attributable to noncontrolling interests | (57) | - | - | ||||||
Net loss attributable to BIT Mining Limited | (19,449) | (934) | (4,359) | ||||||
Other comprehensive loss | |||||||||
Foreign currency translation loss | (1,069) | (650) | (44) | ||||||
Other comprehensive loss, net of tax | (1,069) | (650) | (44) | ||||||
Comprehensive loss | (20,575) | (1,584) | (4,403) | ||||||
Less: Comprehensive loss attributable to noncontrolling interests | (86) | - | - | ||||||
Comprehensive loss attributable to BIT Mining Limited | (20,489) | (1,584) | (4,403) | ||||||
Weighted average number of Class A and Class B ordinary | |||||||||
Basic | 978,599,199 | 1,111,232,309 | 1,111,232,309 | ||||||
Diluted | 978,599,199 | 1,111,232,309 | 1,111,232,309 | ||||||
Losses per share attributable to BIT Mining Limited-Basic and | |||||||||
Net loss | (0.02) | (0.00) | (0.00) | ||||||
Losses per ADS* attributable to BIT Mining Limited-Basic and | |||||||||
Net loss | (1.99) | (0.08) | (0.39) | ||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of | |||||||||
Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS |
BIT Mining Limited | |||||||||
Reconciliation of non-GAAP results of operations measures to the nearest comparable GAAP measures | |||||||||
(Amounts in thousands of | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
September 30, | June 30, | September 30, | |||||||
US$ | US$ | US$ | |||||||
Operating loss | (30,816) | (1,536) | (3,746) | ||||||
Adjustment for impairment of intangible assets | 7,539 | - | - | ||||||
Adjustment for impairment of property and equipment | 11,747 | - | - | ||||||
Adjusted operating loss (non-GAAP) | (11,530) | (1,536) | (3,746) | ||||||
Net loss attributable to BIT Mining Limited | (19,449) | (934) | (4,359) | ||||||
Adjustment for impairment of intangible assets | 7,539 | - | - | ||||||
Adjustment for impairment of property and equipment | 11,747 | - | - | ||||||
Adjustment for changes in fair value of derivative instruments | - | (275) | 808 | ||||||
Adjusted net loss attributable to BIT Mining Limited (non- | (163) | (1,209) | (3,551) | ||||||
Weighted average number of Class A and Class B ordinary | |||||||||
Basic | 978,599,199 | 1,111,232,309 | 1,111,232,309 | ||||||
Diluted | 978,599,199 | 1,111,232,309 | 1,111,232,309 | ||||||
Losses per share attributable to BIT Mining Limited (non- | |||||||||
Net loss (non-GAAP) | (0.00) | (0.00) | (0.00) | ||||||
Losses per ADS* attributable to BIT Mining Limited (non- | |||||||||
Net loss (non-GAAP) | (0.02) | (0.11) | (0.32) | ||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of | |||||||||
Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to |
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SOURCE BIT Mining Limited
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