BIT Mining Limited Announces Unaudited Financial Results for the First Quarter ended March 31, 2023
Cryptocurrency Business Progress
BIT Mining has four primary business segments covering 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
Our subsidiary, Bee Computing, has launched the latest generation of its popular DOGE/LTC mining machine, model LD4 ("LD4"), an aluminum Printed Circuit Board ("PCB") and a single airflow channel mining machine design.
- The engineering sample of our next generation BTC mining ASIC has finished its assembly and testing. The system design team is currently working on ASIC validation and completing the hash board to bring up the hash rate. We anticipate the hardware and software design will be optimized by August 2023, at which time we will have the first engineering demo sample of the mining machine.
- We have successfully produced more than 7,920 DOGE/LTC mining machines with a total theoretical hash rate capacity of approximately 37,742 GH/s. We have deployed all of the DOGE/LTC mining machines at the cryptocurrency mining data center we host in
Akron, Ohio (the "Ohio Mining Site") for use in our self-mining business.
Self-mining
As of today, the total hash rate capacity of our online DOGE/LTC mining machines is approximately 31,327 GH/s. For the three months ended March 31, 2023, we produced 31.6 million DOGE and 17,169 LTC from our DOGE/LTC cryptocurrency mining operations, and recognized revenue of approximately
Due to continued declines in cryptocurrency markets since the second half of 2022, we suspended the operation of certain types of BTC mining machines. Despite the modest recovery and narrow growth in cryptocurrency asset prices, there remains considerable uncertainty in the market. Facing with this current environment, we are still determined to improve our quality and efficiency. As of today, the total hash rate capacity of our online BTC mining machines is approximately 64 PH/s. For the three months ended March 31, 2023, we produced 99 BTC from our BTC cryptocurrency mining operations, and recognized revenue of approximately
Mining Pool
Supported by the growth in cryptocurrency prices in the first quarter of 2023, our mining pool business revenue increased from
Data Center Operation
During the first quarter of 2023, our 82.5 megawatt space (the "82.5 Megawatt Space") in the Ohio Mining Site recognized approximately
From April 24, 2023 to May 26, 2023, the Ohio Mining Site experienced a continuous power outage. The outage from April 24, 2023 to April 28, 2023 was caused by the utility company serving the Ohio Mining Site (the "Utility Company") temporarily suspending electricity supply to the Ohio Mining Site for maintenance purposes. The outage after the completion of maintenance, was caused by a failure by our partner, Viking Data Centers LLC (the "VDC"), to timely settle charges with the Utility Company. VDC was responsible for settling such charges on a regular basis per relevant agreements with us. VDC failed to timely pay the Utility Company despite our having timely paid VDC for our portion of the electricity bills. We were officially aware of this fact on May 25, 2023, at the first tripartite meeting with VDC and the Utility Company.
Although the electricity supply to the Ohio Mining Site was ultimately restored, we have demanded that VDC compensate us for losses we incurred due to the extended power outage. We reserve all of our rights under our Restructuring and Spin-Off Agreement with VDC, as well as our claims under other relevant agreements. Furthermore, we are actively working with the Utility Company to install a separate meter and service line for the 82.5 Megawatt Space, and have established a collaboration with a new data center for contingency purposes.
"We are pleased to report first quarter results that demonstrate a quarter-over-quarter improvment in both top- and bottom-line results as the cryptocurrency market began to rebound early in 2023. During the first quarter, even with continued market uncertainties and pressures, we stayed focused on our development strategy and investing in our future growth," said Xianfeng Yang, CEO of BIT Mining. "In May, we launched the latest generation of our popular Dogecoin/Litecoin mining machine, the model LD4. This ground-breaking model provides significant improvements in both efficiency and technological advancement over the prior generation. With the assembly and testing complete, we are now in the process of validating the ASIC and finalizing the hash board to bring up the hash rate. We anticipate the hardware and software design will be optimized by August 2023, and expect to have the first engineering demo sample of the mining machine. We also announced our strategic alliance with Chain Reaction to develop the next-generation systems for bitcoin mining based on Chain Reaction's Electrum ASIC solution. As a leading cryptocurrency mining machine company, we will stay committed to further pushing the boundaries of technology and broadening our footprint in the industry value chain. We will continue to uphold our value proposition, contributing to accelerating the industry's efficiency while creating long-term value for our shareholders."
First Quarter 2023 Highlights
- Revenues were
US in the first quarter of 2023, representing a sharp decrease of$72.9 million US from$223.8 million US for the first quarter of 2022, and an increase of$296.7 million US from$11.9 million US for the fourth quarter of 2022. Revenues during the first quarter of 2023 were primarily comprised of$61.0 million US in revenue contribution from the mining pool business.$60.0 million - Operating loss was
US in the first quarter of 2023, representing an increase of$6.0 million US from$4.4 million US for the first quarter of 2022, and a decrease of$1.6 million US from$109.8 million US for the fourth quarter of 2022.$115.8 million - Non-GAAP operating loss1 was
US in the first quarter of 2023, as compared with non-GAAP operating loss of$5.2 million US for the first quarter of 2022, and non-GAAP operating loss of$0.1 million US for the fourth quarter of 2022.$18.0 million - Net loss attributable to BIT Mining was
US in the first quarter of 2023, as compared with net loss attributable to BIT Mining of$4.9 million US for the first quarter of 2022, and net loss attributable to BIT Mining of$0.3 million US for the fourth quarter of 2022.$117.5 million - Non-GAAP net loss1 attributable to BIT Mining was
US in the first quarter of 2023, as compared with non-GAAP net income attributable to BIT Mining of$4.2 million US for the first quarter of 2022, and non-GAAP net loss attributable to BIT Mining of$1.1 million US for the fourth quarter of 2022.$17.5 million - Basic and diluted losses per American Depositary Share ("ADS")2 attributable to BIT Mining Limited for the first quarter of 2023 were
US .$0.46 - Non-GAAP basic and diluted losses per ADS2 attributable to BIT Mining Limited for the first quarter of 2023 were
US .$0.39
1 Non-GAAP financial measures exclude the impact of share-based compensation expenses, impairment of property and equipment, impairment of intangible assets, impairment of goodwill, impairment of long-term investments, and changes in fair value of contingent considerations. 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 |
First 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 first quarter of 2023 and 2022, and was
Impairment of Intangible Assets
Impairment of intangible assets was nil for the first quarter of 2023 and 2022, and was
Impairment of Goodwill
Impairment of goodwill was nil for the first quarter of 2022 and 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 March 31, 2023, the Company had cash and cash equivalents of
Cryptocurrency Assets
As of March 31, 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 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 | ||||||||
December 31, 2022 | March 31, 2023 | |||||||
US$ | US$ | |||||||
Audited | Unaudited | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 5,448 | 4,618 | ||||||
Restricted cash | 126 | 126 | ||||||
Short-term investment | 2,360 | 2,360 | ||||||
Accounts receivable | 4,120 | 4,748 | ||||||
Prepayments and other current assets | 8,310 | 9,992 | ||||||
Cryptocurrency assets | 14,972 | 18,359 | ||||||
Total current assets | 35,336 | 40,203 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 27,220 | 30,904 | ||||||
Intangible assets, net | 3,314 | 2,994 | ||||||
Deposits | 2,387 | 2,470 | ||||||
Long-term investments | 8,049 | 6,659 | ||||||
Right-of-use assets | 4,135 | 3,833 | ||||||
Long-term prepayments and other non-current assets | 6,363 | 1,108 | ||||||
Total non-current assets | 51,468 | 47,968 | ||||||
TOTAL ASSETS | 86,804 | 88,171 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 23,425 | 30,096 | ||||||
Accrued payroll and welfare payable | 819 | 449 | ||||||
Accrued expenses and other current liabilities | 5,155 | 4,502 | ||||||
Income tax payable | 73 | 73 | ||||||
Operating lease liabilities - current | 1,367 | 1,291 | ||||||
Total current liabilities | 30,839 | 36,411 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities - non-current | 2,837 | 2,585 | ||||||
Total non-current liabilities | 2,837 | 2,585 | ||||||
TOTAL LIABILITIES | 33,676 | 38,996 | ||||||
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) | (547,086) | ||||||
Accumulated other comprehensive loss | (3,960) | (3,750) | ||||||
Total shareholders' equity | 53,128 | 49,175 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 86,804 | 88,171 | ||||||
BIT Mining Limited | ||||||||||||
Condensed Consolidated Statements of Comprehensive Loss | ||||||||||||
(Amounts in thousands of | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
US$ | US$ | US$ | ||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||
Revenues | 296,678 | 61,043 | 72,872 | |||||||||
Operating costs and expenses: | ||||||||||||
Cost of revenue | (287,904) | (71,062) | (71,708) | |||||||||
Sales and marketing expenses | (159) | (120) | (135) | |||||||||
General and administrative expenses | (6,849) | (5,846) | (6,474) | |||||||||
Service development expenses | (1,107) | (682) | (556) | |||||||||
Total operating costs and expenses | (296,019) | (77,710) | (78,873) | |||||||||
Other operating income | 255 | 82 | 1 | |||||||||
Government grant | - | 2 | - | |||||||||
Other operating expenses | (903) | (3,964) | (302) | |||||||||
Net gain on disposal of cryptocurrency assets | 4,859 | 5,843 | 1,881 | |||||||||
Impairment of cryptocurrency assets | (7,673) | (3,321) | (1,557) | |||||||||
Changes in fair value of contingent considerations | 1,247 | - | - | |||||||||
Impairment of property and equipment | - | (22,641) | - | |||||||||
Impairment of intangible assets | - | (48,555) | - | |||||||||
Impairment of goodwill | - | (26,569) | - | |||||||||
Operating loss | (1,556) | (115,790) | (5,978) | |||||||||
Other income, net | 532 | 531 | 90 | |||||||||
Interest income | 72 | 25 | 40 | |||||||||
Interest expense | (174) | - | - | |||||||||
Gain from equity method investments | 152 | 8 | 931 | |||||||||
Impairment of long-term investments | - | (2,250) | - | |||||||||
Loss before income tax | (974) | (117,476) | (4,917) | |||||||||
Income tax benefits | - | - | - | |||||||||
Net loss | (974) | (117,476) | (4,917) | |||||||||
Less: Net loss attributable to noncontrolling interests | (696) | - | - | |||||||||
Net loss attributable to BIT Mining Limited | (278) | (117,476) | (4,917) | |||||||||
Other comprehensive income | ||||||||||||
Foreign currency translation gain | 261 | 236 | 210 | |||||||||
Other comprehensive income, net of tax | 261 | 236 | 210 | |||||||||
Comprehensive loss | (713) | (117,240) | (4,707) | |||||||||
Less: Comprehensive loss attributable to noncontrolling | (649) | - | (130) | |||||||||
Comprehensive loss attributable to BIT Mining Limited | (64) | (117,240) | (4,577) | |||||||||
Weighted average number of Class A and Class B ordinary | ||||||||||||
Basic | 710,078,169 | 1,063,813,210 | 1,075,002,062 | |||||||||
Diluted | 710,078,169 | 1,063,813,210 | 1,075,002,062 | |||||||||
Losses per share attributable to BIT Mining Limited-Basic | ||||||||||||
Net loss | (0.00) | (0.11) | (0.00) | |||||||||
Losses per ADS* attributable to BIT Mining Limited-Basic | ||||||||||||
Net loss | (0.04) | (11.04) | (0.46) | |||||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company. | |||||||||||
Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, |
BIT Mining Limited | ||||||||||||
Reconciliation of non-GAAP results of operations measures to the nearest comparable GAAP measures | ||||||||||||
(Amounts in thousands of | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
US$ | US$ | US$ | ||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||
Operating loss | (1,556) | (115,790) | (5,978) | |||||||||
Adjustment for share-based compensation expenses | 2,667 | - | 754 | |||||||||
Adjustment for impairment of intangible assets | 48,555 | - | ||||||||||
Adjustment for impairment of property and equipment | - | 22,641 | - | |||||||||
Adjustment for changes in fair value of contingent | (1,247) | - | - | |||||||||
Adjustment for impairment of goodwill | - | 26,569 | - | |||||||||
Adjusted operating loss (non-GAAP) | (136) | (18,025) | (5,224) | |||||||||
Net loss attributable to BIT Mining Limited | (278) | (117,476) | (4,917) | |||||||||
Adjustment for share-based compensation expenses | 2,667 | - | 754 | |||||||||
Adjustment for impairment of intangible assets | - | 48,555 | - | |||||||||
Adjustment for impairment of goodwill | - | 26,569 | - | |||||||||
Adjustment for impairment of long-term investments | - | 2,250 | - | |||||||||
Adjustment for impairment of property and equipment | - | 22,641 | - | |||||||||
Adjustment for changes in fair value of contingent | (1,247) | - | - | |||||||||
Adjusted net income (loss) attributable to BIT Mining | 1,142 | (17,461) | (4,163) | |||||||||
Weighted average number of Class A and Class B ordinary | ||||||||||||
Basic | 710,078,169 | 1,063,813,210 | 1,075,002,062 | |||||||||
Diluted | 710,078,169 | 1,063,813,210 | 1,075,002,062 | |||||||||
Earnings (Losses) per share attributable to BIT Mining | ||||||||||||
Net income (loss) (non-GAAP) | 0.00 | (0.02) | (0.00) | |||||||||
Earnings (Losses) per ADS* attributable to BIT Mining | ||||||||||||
Net income (loss) (non-GAAP) | 0.16 | (1.64) | (0.39) | |||||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company. | |||||||||||
Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, |
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SOURCE BIT Mining Limited
