BIT Mining Limited Announces Unaudited Financial Results for the Second Quarter ended June 30, 2023
- Mining pool business revenue increased to $65.9M
- Mining machine manufacturing progressing
- Power outage caused decrease in service fee revenue
- Company seeking alternative locations
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 invest in the research and development of the next generation of 7nm BTC mining machines. Together with our strategic ally, Chain Reaction, a semiconductor company focused on disruptive blockchain and privacy hardware, we are producing next-generation BTC mining systems. Our system design team continues to work on ASIC validation while completing the hash board to increase hash rates. We expect to optimize the hardware and software design as well as have the mining machine's first engineering prototype sample by September 2023.
Self-mining
As of today, the total hash rate capacity of our DOGE/LTC mining machines in operation is approximately 31,607.3 GH/s. For the three months ended June 30, 2023, we produced 29.4 million DOGE and 16,027 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 this quarter's 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 50.9 PH/s. For the three months ended June 30, 2023, we produced 22.6 BTC from our BTC cryptocurrency mining operations and recognized revenue of approximately
Mining Pool
Supported by the growth in cryptocurrency prices in the second quarter of 2023, our mining pool business revenue increased from
Data Center Operation – Power Outage at Ohio Mining Site
During the second 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 our service provider, Viking Data Centers LLC ("VDC"), failing to timely settle charges with the Utility Company. VDC was responsible for settling such charges on a regular basis, per our relevant agreements. VDC failed to pay the Utility Company in a timely manner despite our paying VDC on time for our portion of the electricity bills. After being made aware of this incident, we worked closely with VDC and the Utility Company to resolve this problem. On May 26, 2023, the electricity supply to the Ohio Mining Site was restored.
We continue to monitor this situation with VDC and urge them to rectify the management of the electricity supply. Furthermore, we reserve all of our rights under our Restructuring and Spin-Off Agreement with VDC, as well as our claims under other relevant agreements.
In the wake of the negative impact of the power outage at the Ohio Mining Site, the Company is also actively seeking potential alternative locations other than
"We are delighted to share that for the second quarter of 2023, both our top- and bottom-line results continued to improve quarter-over-quarter. Despite ongoing uncertainties and operational challenges, we resolutely executed our strategy and successfully capitalized on the ongoing recovery in the cryptocurrency market," said Xianfeng Yang, CEO of BIT Mining. "Furthermore, we continued to drive progress in our mining machine business' collaboration with Chain Reaction on the development of our next-generation 7nm BTC mining machine, and are on track to complete hardware and software design optimization as well as produce an engineering prototype sample by September 2023. Meanwhile, our diversified revenue streams strategy propelled revenue growth in the mining pool business, which also benefited from the strengthening cryptocurrency prices in the second quarter of 2023. Looking ahead, we will remain dedicated to enhancing efficiency, upgrading our mining machine technology and expanding our industry presence while creating shareholder value through sustained innovation."
Second Quarter 2023 Highlights
- Revenues were
US for the second quarter of 2023, representing a sharp decrease of$74.1 million US from$121.4 million US for the second quarter of 2022 and an increase of$195.5 million US from$1.2 million US for the first quarter of 2023. Revenues during the second quarter of 2023 were primarily comprised of$72.9 million US in revenue contribution from the mining pool business.$65.9 million - Operating loss was
US for the second quarter of 2023, representing a significant decrease of$1.5 million US from$19.0 million US for the second quarter of 2022 and a decrease of$20.5 million US from$4.5 million US for the first quarter of 2023.$6.0 million - Non-GAAP operating loss1 was
US for the second quarter of 2023, as compared with non-GAAP operating loss of$1.5 million US for the second quarter of 2022 and non-GAAP operating loss of$17.8 million US for the first quarter of 2023.$5.2 million - Net loss attributable to BIT Mining was
US for the second quarter of 2023, as compared with net loss attributable to BIT Mining of$0.9 million US for the second quarter of 2022 and net loss attributable to BIT Mining of$18.2 million US for the first quarter of 2023.$4.9 million - Non-GAAP net loss1 attributable to BIT Mining was
US for the second quarter of 2023, as compared with non-GAAP net loss attributable to BIT Mining of$1.2 million US for the second quarter of 2022 and non-GAAP net loss attributable to BIT Mining of$15.6 million US for the first quarter of 2023.$4.2 million - Basic and diluted losses per American Depositary Share ("ADS")2 attributable to BIT Mining Limited for the second quarter of 2023 were
US .$0.08 - Non-GAAP basic and diluted losses per ADS2 attributable to BIT Mining Limited for the second quarter of 2023 were
US .$0.11
1 Non-GAAP financial measures exclude the impact of share-based compensation expenses, impairment of property and equipment, changes in fair value of contingent considerations, 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 |
Second 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 (Loss) 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 and second 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 June 30, 2023, the Company had cash and cash equivalents of
Cryptocurrency Assets
As of June 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
The Piacente Group, Inc.
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, | June 30, | |||||||
US$ | US$ | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 5,448 | 4,561 | ||||||
Restricted cash | 126 | 129 | ||||||
Short-term investment | 2,360 | - | ||||||
Accounts receivable | 4,120 | 4,130 | ||||||
Prepayments and other current assets | 8,310 | 14,288 | ||||||
Cryptocurrency assets | 14,972 | 14,745 | ||||||
Total current assets | 35,336 | 37,853 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 27,220 | 28,581 | ||||||
Intangible assets, net | 3,314 | 2,672 | ||||||
Deposits | 2,387 | 2,460 | ||||||
Long-term investments | 8,049 | 6,398 | ||||||
Right-of-use assets | 4,135 | 3,523 | ||||||
Long-term prepayments and other non-current assets | 6,363 | 661 | ||||||
Total non-current assets | 51,468 | 44,295 | ||||||
TOTAL ASSETS | 86,804 | 82,148 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 23,425 | 25,755 | ||||||
Accrued payroll and welfare payable | 819 | 598 | ||||||
Accrued expenses and other current liabilities | 5,155 | 4,589 | ||||||
Income tax payable | 73 | 75 | ||||||
Operating lease liabilities - current | 1,367 | 1,209 | ||||||
Total current liabilities | 30,839 | 32,226 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities - non-current | 2,837 | 2,331 | ||||||
Total non-current liabilities | 2,837 | 2,331 | ||||||
TOTAL LIABILITIES | 33,676 | 34,557 | ||||||
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) | (548,020) | ||||||
Accumulated other comprehensive loss | (3,960) | (4,400) | ||||||
Total shareholders' equity | 53,128 | 47,591 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 86,804 | 82,148 |
BIT Mining Limited | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Loss | ||||||||||||||||||||
(Amounts in thousands of | ||||||||||||||||||||
except for number of shares, per share (or ADS) data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Revenues | 195,519 | 72,872 | 74,065 | 492,197 | 146,937 | |||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue | (195,948) | (71,708) | (72,943) | (483,852) | (144,651) | |||||||||||||||
Sales and marketing expenses | (180) | (135) | (131) | (339) | (266) | |||||||||||||||
General and administrative | (5,515) | (6,474) | (4,634) | (12,364) | (11,108) | |||||||||||||||
Service development expenses | (1,077) | (556) | (328) | (2,184) | (884) | |||||||||||||||
Total operating costs and expenses | (202,720) | (78,873) | (78,036) | (498,739) | (156,909) | |||||||||||||||
Other operating income | 21 | 1 | 209 | 276 | 210 | |||||||||||||||
Government grant | 9 | - | - | 9 | - | |||||||||||||||
Other operating expenses | (612) | (302) | - | (1,515) | (302) | |||||||||||||||
Net (loss) gain on disposal of | (6,916) | 1,881 | 3,923 | (2,057) | 5,804 | |||||||||||||||
Impairment of cryptocurrency | (4,947) | (1,557) | (1,697) | (12,620) | (3,254) | |||||||||||||||
Changes in fair value of contingent | - | - | - | 1,247 | - | |||||||||||||||
Impairment of property and | (836) | - | - | (836) | - | |||||||||||||||
Operating loss | (20,482) | (5,978) | (1,536) | (22,038) | (7,514) | |||||||||||||||
Other income, net | 22 | 90 | 317 | 554 | 407 | |||||||||||||||
Interest income | 34 | 40 | 2 | 106 | 42 | |||||||||||||||
Interest expense | (44) | - | - | (218) | - | |||||||||||||||
(Loss) gain from equity method | (1) | 931 | 8 | 151 | 939 | |||||||||||||||
Changes in fair value of derivative | - | - | 275 | - | 275 | |||||||||||||||
Loss before income tax | (20,471) | (4,917) | (934) | (21,445) | (5,851) | |||||||||||||||
Income tax benefits | - | - | - | - | - | |||||||||||||||
Net loss | (20,471) | (4,917) | (934) | (21,445) | (5,851) | |||||||||||||||
Less: Net loss attributable to | (2,259) | - | - | (2,955) | - | |||||||||||||||
Net loss attributable to BIT Mining | (18,212) | (4,917) | (934) | (18,490) | (5,851) | |||||||||||||||
Other comprehensive (loss) income | ||||||||||||||||||||
Foreign currency translation (loss) | (1,163) | 210 | (650) | (902) | (440) | |||||||||||||||
Other comprehensive (loss) income, | (1,163) | 210 | (650) | (902) | (440) | |||||||||||||||
Comprehensive loss | (21,634) | (4,707) | (1,584) | (22,347) | (6,291) | |||||||||||||||
Less: Comprehensive loss | (2,407) | (130) | - | (3,056) | (130) | |||||||||||||||
Comprehensive loss attributable to | (19,227) | (4,577) | (1,584) | (19,291) | (6,161) | |||||||||||||||
Weighted average number of Class | ||||||||||||||||||||
Basic | 725,833,560 | 1,075,002,062 | 1,111,232,309 | 717,955,865 | 1,093,318,465 | |||||||||||||||
Diluted | 725,833,560 | 1,075,002,062 | 1,111,232,309 | 717,955,865 | 1,093,318,465 | |||||||||||||||
Losses per share attributable to | ||||||||||||||||||||
Net loss | (0.03) | (0.00) | (0.00) | (0.03) | (0.01) | |||||||||||||||
Losses per ADS* attributable to | ||||||||||||||||||||
Net loss | (2.51) | (0.46) | (0.08) | (2.58) | (0.54) | |||||||||||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company. | ||||||||||||||||||||
BIT Mining Limited | ||||||||||||||||||||
Reconciliation of non-GAAP results of operations measures to the nearest comparable GAAP measures | ||||||||||||||||||||
(Amounts in thousands of | ||||||||||||||||||||
except for number of shares, per share (or ADS) data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Operating loss | (20,482) | (5,978) | (1,536) | (22,038) | (7,514) | |||||||||||||||
Adjustment for share-based | 1,807 | 754 | - | 4,474 | 754 | |||||||||||||||
Adjustment for impairment of | 836 | - | - | 836 | - | |||||||||||||||
Adjustment for changes in fair | - | - | - | (1,247) | - | |||||||||||||||
Adjusted operating loss (non- | (17,839) | (5,224) | (1,536) | (17,975) | (6,760) | |||||||||||||||
Net loss attributable to BIT Mining | (18,212) | (4,917) | (934) | (18,490) | (5,851) | |||||||||||||||
Adjustment for share-based compensation expenses | 1,807 | 754 | - | 4,474 | 754 | |||||||||||||||
Adjustment for impairment of | 836 | - | - | 836 | - | |||||||||||||||
Adjustment for changes in fair | - | - | (275) | - | (275) | |||||||||||||||
Adjustment for changes in fair | - | - | - | (1,247) | - | |||||||||||||||
Adjusted net loss attributable to | (15,569) | (4,163) | (1,209) | (14,427) | (5,372) | |||||||||||||||
Weighted average number of Class | ||||||||||||||||||||
Basic | 725,833,560 | 1,075,002,062 | 1,111,232,309 | 717,955,865 | 1,093,318,465 | |||||||||||||||
Diluted | 725,833,560 | 1,075,002,062 | 1,111,232,309 | 717,955,865 | 1,093,318,465 | |||||||||||||||
Losses per share attributable to | ||||||||||||||||||||
Net loss (non-GAAP) | (0.02) | (0.00) | (0.00) | (0.02) | (0.00) | |||||||||||||||
Losses per ADS* attributable to | ||||||||||||||||||||
Net loss (non-GAAP) | (2.15) | (0.39) | (0.11) | (2.01) | (0.49) | |||||||||||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company. | ||||||||||||||||||||
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SOURCE BIT Mining Limited