BIT Mining Limited Announces Unaudited Financial Results for the Third Quarter ended September 30, 2022
BIT Mining Limited (NYSE: BTCM) reported Q3 2022 financial results, showing revenues of $97.0 million, a steep decline from $393.1 million in Q3 2021 and $195.5 million in Q2 2022. The operating loss was $33.6 million, a slight improvement from $35.0 million in Q3 2021 but worse than $23.3 million in Q2 2022. Net loss attributable to BIT Mining was $22.2 million, compared to $29.6 million in the prior year. The company has suspended some BTC mining operations due to market declines, while focusing on R&D for new mining technologies.
- Successful production of 3,300 DOGE/LTC mining machines expected by early 2023.
- Progress in R&D for 7-nanometer BTC mining chips likely to enhance efficiency.
- Revenues decreased by 75.3% year-over-year and 50.4% sequentially due to lower cryptocurrency prices.
- Operating loss increased from $23.3 million in Q2 2022 to $33.6 million in Q3 2022.
- Impairment of property and equipment rose to $11.7 million, reflecting operational challenges.
AKRON, Ohio, Nov. 17, 2022 /PRNewswire/ -- BIT Mining Limited (NYSE: BTCM) ("BIT Mining," "the Company," "we," "us," or "our company"), a leading technology-driven cryptocurrency mining company, today reported its unaudited financial results for the third quarter ended September 30, 2022.
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.
Our subsidiary, Bee Computing, has designed a new generation of highly efficient Bitcoin ("BTC") and Dogecoin ("DOGE") / Litecoin ("LTC") mining machines utilizing the most advanced technology.
- Together with our partners, we have successfully taped out a 12-nanometer chip and have completed mass production of more than 1,000 LTC mining wafers. We are currently in the trial production stage of DOGE/LTC mining machine products and will start mass production in the fourth quarter of 2022. We expect to mass produce approximately 3,300 DOGE/LTC mining machine products by the end of December 2022 or early January 2023.
- Our research and development of a 7-nanometer chip for BTC mining machines also has achieved significant progress. The wafer is currently being taped out by a well-known semiconductor manufacturing company, and the results will be received in early December 2022. If the results are valid, we will be able to proceed with the final verification of ASIC and the mining system in December 2022.
- Moreover, Bee Computing successfully produced 252 W1 ASIC Ethereum Classic ("ETC") mining machines in August 2022, achieving power efficiency of 0.5 W/MH. These ETC mining machines have been deployed and are online at the cryptocurrency mining data center we host in Akron, Ohio (the "Ohio Mining Site"). As of today, a substation with power capacity of 82.5 megawatts has completed construction and is operational at the Ohio Mining Site.
The Ethereum Merge, namely, of the Ethereum Mainnet and the Beacon Chain Proof-of-Stake system (the "Merge"), occurred on September 15, 2022. We produced 4,206 Ethereum ("ETH") from our ETH cryptocurrency mining operations, and recognized revenue of approximately US
Due to recent declines in cryptocurrency markets, we suspended the operation of certain types of BTC mining machines. Despite the changes and uncertain 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 64.61 PH/s. For the three months ended September 30, 2022, we produced 15 BTC from our BTC cryptocurrency mining operations, and recognized revenue of approximately US
Due to declines in prices of cryptocurrencies in the third quarter of 2022, mining pool business revenue decreased from US
Sale of Shares of Loto Interactive Limited
On July 12, 2022, the Company entered into a share sale and purchase agreement (the "Sale and Purchase Agreement") with an unaffiliated third party (the "Buyer"), pursuant to which the Company agreed to sell, and the Buyer agreed to purchase, approximately
"We are glad to announce our financial results for the third quarter ended September 30, 2022, as we continue to execute our strategy to create value across the cryptocurrency ecosystem," said Mr. Xianfeng Yang, CEO of BIT Mining. "Over the past quarter, we focused on R&D and identifying synergies across our vertically integrated supply chain. Cryptocurrency price weakness and higher energy prices have had a significant impact on stock prices and revenues of companies in our sector, including BIT Mining. Despite turbulent market conditions, we remain committed to our long term growth strategy and confident in our ability to create value for our shareholders in the future. In the meantime, we continued to make progress in the construction of our data centers in Ohio. Given our early-mover advantage in Ethereum mining, we are also making inroads into Proof-of-Stake (POS) operations by providing a series of services including governance and monitoring, node management and account systems. Looking forward, we plan to continue to further enhance our value proposition and further strengthen our mining technology."
Third Quarter 2022 Highlights for Continuing Operations
- Revenues were US
$97.0 million in the third quarter of 2022, representing a sharp decrease of US$296.1 million from US$393.1 million for the third quarter of 2021, and a significant decrease of US$98.5 million from US$195.5 million for the second quarter of 2022. Revenues during the third quarter of 2022 primarily comprised US$88.5 million in revenue contribution from the mining pool business. - Operating loss was US
$33.6 million in the third quarter of 2022, representing a decrease of US$1.4 million from US$35.0 million for the third quarter of 2021, and an increase of US$10.3 million from US$23.3 million for the second quarter of 2022. - Non-GAAP operating loss[1] was US
$14.3 million in the third quarter of 2022, as compared with non-GAAP operating loss of US$25.0 million for the third quarter of 2021, and non-GAAP operating loss of US$20.6 million for the second quarter of 2022. - Net loss attributable to BIT Mining was US
$22.2 million in the third quarter of 2022, as compared with net loss attributable to BIT Mining of US$29.6 million for the third quarter of 2021, and net loss attributable to BIT Mining of US$21.0 million for the second quarter of 2022. - Non-GAAP net loss[1] attributable to BIT Mining was US
$2.9 million in the third quarter of 2022, as compared with non-GAAP net loss attributable to BIT Mining of US$19.6 million for the third quarter of 2021, and non-GAAP net loss attributable to BIT Mining of US$18.3 million for the second quarter of 2022. - Basic and diluted losses per American Depositary Share ("ADS") attributable to BIT Mining Limited for the third quarter of 2022 were US
$0.23 . - Non-GAAP basic and diluted losses per ADS1 attributable to BIT Mining Limited for the third quarter of 2022 were US
$0.03 .
1 Non-GAAP financial measures exclude the impact of share-based compensation expenses, impairment of property and equipment, impairment of intangible assets and changes in fair value or derivative instrument. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in the table at the end of this release. |
Third Quarter 2022 Financial Results for Continuing Operations
Revenues
Revenues were US
Operating Costs and Expenses
Operating costs and expenses were US
Cost of revenue was US
Sales and marketing expenses were US
General and administrative expenses were US
Service development expenses were US
Net (Loss) Gain on Disposal of Cryptocurrencies
Net gain on disposal of cryptocurrencies was US
Impairment of Cryptocurrencies
Impairment of cryptocurrencies was US
Impairment of Property and Equipment
Impairment of property and equipment was US
Impairment of Intangible Assets
Impairment of intangible assets was US
Operating Loss
Operating loss was US
Non-GAAP operating loss was US
Net Loss Attributable to BIT Mining
Net loss attributable to BIT Mining was US
Non-GAAP net loss attributable to BIT Mining was US
Third Quarter 2022 Financial Results for Discontinued Operations
Net Loss from Discontinued Operations, Net of Taxes
Net loss from discontinued operations, net of taxes was nil for the third quarter of 2022, compared with net loss from discontinued operations, net of taxes of US
Cash and Cash Equivalents and Restricted Cash
As of September 30, 2022, the Company had cash and cash equivalents of US
Cryptocurrency Assets
As of September 30, 2022, the Company had cryptocurrency assets of US
2 Restricted cash represents deposits in merchant banks yet to be withdrawn. |
3 Time deposit represents deposits in commercial banks with original maturities of greater than three months but less than one 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 U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
About Non-GAAP Financial Measures
As a supplement to net income, we use the non-GAAP financial measure of adjusted net loss which is U.S. GAAP net loss as adjusted to exclude share-based compensation expenses, impairment of acquired intangible assets, impairment of property and equipment, and changes in fair value of derivative instrument. All adjustments are non-cash and we believe they are not reflective of our general business performance. This non-GAAP financial measure is provided as additional information to help our investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of our current financial performance and prospects for the future. This non-GAAP financial measure should not be considered in addition to or as a substitute for or superior to U.S. GAAP net income. In addition, our definition of adjusted net income may be different from the definition of such term used by other companies, and therefore comparability may be limited.
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 | ||||||||
December 31, | September 30, | |||||||
US$ | US$ | |||||||
Audited | Unaudited | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 17,670 | 12,548 | ||||||
Restricted cash | 134 | 115 | ||||||
Time deposits | - | 7,340 | ||||||
Accounts receivable | 737 | 3,075 | ||||||
Prepayments and other current assets | 21,525 | 24,739 | ||||||
Cryptocurrency assets | 55,077 | 17,384 | ||||||
Total current assets | 95,143 | 65,201 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 70,199 | 37,077 | ||||||
Intangible assets, net | 71,931 | 53,651 | ||||||
Deposits | 99 | 2,590 | ||||||
Long-term investments | 10,050 | 10,298 | ||||||
Right-of-use assets | 6,166 | 4,248 | ||||||
Amounts due from related party - non-current | 11,504 | - | ||||||
Other non-current assets | 4,455 | 545 | ||||||
Goodwill | 26,569 | 26,569 | ||||||
Total non-current assets | 200,973 | 134,978 | ||||||
TOTAL ASSETS | 296,116 | 200,179 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 54,438 | 24,864 | ||||||
Amounts due to related parties | 8,021 | - | ||||||
Accrued payroll and welfare payable | 489 | 51 | ||||||
Accrued expenses and other current liabilities | 18,738 | 6,745 | ||||||
Income tax payable | 498 | 67 | ||||||
Operating lease liabilities - current | 2,213 | 1,430 | ||||||
Total current liabilities | 84,397 | 33,157 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities - non-current | 4,569 | 3,086 | ||||||
Total non-current liabilities | 4,569 | 3,086 | ||||||
TOTAL LIABILITIES | 88,966 | 36,243 | ||||||
Shareholders' Equity: | ||||||||
Class A ordinary shares, par value US | 36 | 54 | ||||||
Class A preference shares, par value US | - | - | ||||||
Class B ordinary shares, par value US | - | - | ||||||
Additional paid-in capital | 590,567 | 620,807 | ||||||
Treasury shares | (21,604) | (21,604) | ||||||
Accumulated deficit and statutory reserve | (384,867) | (431,125) | ||||||
Accumulated other comprehensive loss | (2,355) | (4,196) | ||||||
Total BIT Mining Limited shareholders' equity | 181,777 | 163,936 | ||||||
Noncontrolling interests | 25,373 | - | ||||||
Total shareholders' equity | 207,150 | 163,936 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 296,116 | 200,179 | ||||||
BIT Mining Limited | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
US$ | US$ | US$ | ||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||
Revenues | 393,093 | 195,519 | 96,987 | |||||||||
Operating costs and expenses: | ||||||||||||
Cost of revenue | (404,826) | (198,721) | (108,072) | |||||||||
Sales and marketing expenses | (226) | (180) | (174) | |||||||||
General and administrative expenses | (8,120) | (5,515) | (4,575) | |||||||||
Service development expenses | (1,057) | (1,077) | (799) | |||||||||
Total operating costs and expenses | (414,229) | (205,493) | (113,620) | |||||||||
Other operating income | 4 | 21 | 232 | |||||||||
Government grant | - | 9 | 18 | |||||||||
Other operating expenses | (4,592) | (612) | - | |||||||||
Net gain (loss) on disposal of cryptocurrencies | 11,239 | (6,916) | 4,574 | |||||||||
Impairment of cryptocurrencies | (13,552) | (4,947) | (2,494) | |||||||||
Changes in fair value of derivative instrument | 2,860 | - | - | |||||||||
Impairment of property and equipment | (9,820) | (836) | (11,747) | |||||||||
Impairment of intangible assets | - | - | (7,539) | |||||||||
Operating loss from continuing operations | (34,997) | (23,255) | (33,589) | |||||||||
Other income, net | 84 | 22 | 7,946 | |||||||||
Interest income | 19 | 34 | 19 | |||||||||
Interest expense | (66) | (44) | - | |||||||||
Gain (Loss) from equity method investments | 24 | (1) | 5 | |||||||||
Gain from disposal of subsidiaries | 17 | - | 3,340 | |||||||||
Loss before income tax | (34,919) | (23,244) | (22,279) | |||||||||
Income tax benefit | - | - | - | |||||||||
Net loss from continuing operations | (34,919) | (23,244) | (22,279) | |||||||||
Loss from discontinued operations, net of applicable income taxes | (47) | - | - | |||||||||
Loss on disposal of discontinued operations, net of applicable | (6,697) | - | - | |||||||||
Net loss from discontinued operations, net of applicable income | (6,744) | - | - | |||||||||
Net loss | (41,663) | (23,244) | (22,279) | |||||||||
Less: Net loss attributable to noncontrolling interest from | (5,302) | (2,259) | (57) | |||||||||
Less: Net loss attributable to noncontrolling interest from | - | - | - | |||||||||
Less: Net loss attributable to noncontrolling interests | (5,302) | (2,259) | (57) | |||||||||
Net loss attributable to BIT Mining Limited | (36,361) | (20,985) | (22,222) | |||||||||
Other comprehensive gain (loss) | ||||||||||||
Foreign currency translation gain (loss) | 537 | (1,163) | (1,069) | |||||||||
Other comprehensive gain (loss), net of tax | 537 | (1,163) | (1,069) | |||||||||
Comprehensive loss | (41,126) | (24,407) | (23,348) | |||||||||
Less: Comprehensive loss attributable to noncontrolling interests | (5,268) | (2,407) | (86) | |||||||||
Comprehensive loss attributable to BIT Mining Limited | (35,858) | (22,000) | (23,262) | |||||||||
Weighted average number of Class A and Class B ordinary | ||||||||||||
Basic | 692,417,296 | 725,833,560 | 978,599,199 | |||||||||
Diluted | 692,417,296 | 725,833,560 | 978,599,199 | |||||||||
Losses per share attributable to BIT Mining Limited-Basic and | ||||||||||||
Net loss from continuing operations | (0.043) | (0.029) | (0.023) | |||||||||
Net loss from discontinued operations | (0.010) | - | - | |||||||||
Net loss | (0.053) | (0.029) | (0.023) | |||||||||
Losses per ADS* attributable to BIT Mining Limited-Basic and | ||||||||||||
Net loss from continuing operations | (0.430) | (0.290) | (0.230) | |||||||||
Net loss from discontinued operations | (0.100) | - | - | |||||||||
Net loss | (0.530) | (0.290) | (0.230) | |||||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company. | ||||||||||||
BIT Mining Limited | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
US$ | US$ | US$ | ||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||
Operating loss from continuing operations | (34,997) | (23,255) | (33,589) | |||||||||
Adjustment for share-based compensation expenses | 3,040 | 1,807 | - | |||||||||
Adjustment for impairment of intangible assets | - | - | 7,539 | |||||||||
Adjustment for impairment of property and equipment | 9,820 | 836 | 11,747 | |||||||||
Adjustment for changes in fair value of derivative instrument | (2,860) | - | - | |||||||||
Adjusted operating loss from continuing operations (non-GAAP) | (24,997) | (20,612) | (14,303) | |||||||||
Net loss attributable to BIT Mining Limited | (36,361) | (20,985) | (22,222) | |||||||||
Net loss attributable to BIT Mining Limited from discontinued operations | (6,744) | - | - | |||||||||
Net loss from continuing operations attributable to BIT Mining | (29,617) | (20,985) | (22,222) | |||||||||
Adjust for continuing operations: | ||||||||||||
Adjustment for share-based compensation expenses | 3,040 | 1,807 | - | |||||||||
Adjustment for impairment of intangible assets | - | - | 7,539 | |||||||||
Adjustment for impairment of property and equipment | 9,820 | 836 | 11,747 | |||||||||
Adjustment for changes in fair value of derivative instrument | (2,860) | - | - | |||||||||
Adjusted net loss from continuing operations attributable to BIT | (19,617) | (18,342) | (2,936) | |||||||||
Adjusted net loss from discontinued operations attributable to | (6,744) | - | - | |||||||||
Adjusted net loss attributable to BIT Mining Limited (non-GAAP) | (26,361) | (18,342) | (2,936) | |||||||||
Weighted average number of Class A and Class B ordinary | ||||||||||||
Basic | 692,417,296 | 725,833,560 | 978,599,199 | |||||||||
Diluted | 692,417,296 | 725,833,560 | 978,599,199 | |||||||||
Losses per share attributable to BIT Mining Limited (non- | ||||||||||||
Net loss from continuing operations (non-GAAP) | (0.030) | (0.025) | (0.003) | |||||||||
Net loss from discontinued operations (non-GAAP) | (0.010) | - | - | |||||||||
Net loss (non-GAAP) | (0.040) | (0.025) | (0.003) | |||||||||
Losses per ADS* attributable to BIT Mining Limited (non- | ||||||||||||
Net loss from continuing operations (non-GAAP) | (0.300) | (0.250) | (0.030) | |||||||||
Net loss from discontinued operations (non-GAAP) | (0.100) | - | - | |||||||||
Net loss (non-GAAP) | (0.400) | (0.250) | (0.030) | |||||||||
* 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
FAQ
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