BIT Mining Limited Announces Unaudited Financial Results for the Fourth Quarter and Full Year ended December 31, 2023
- Revenue increases to $10.4 million for Q4 2023, showing a growth of $3.2 million from Q4 2022.
- Operating loss decreases significantly to $1.6 million for Q4 2023, a substantial improvement from $38.3 million in Q4 2022.
- Net loss attributable to BIT Mining improves to $0.8 million for Q4 2023, compared to $40.0 million in Q4 2022.
- The company sells its mining pool business for $5 million, affecting its financial results and leading to a strategic shift.
- Cryptocurrency mining operations yield revenue of approximately $3.6 million from DOGE/LTC mining and $0.8 million from BTC mining.
- Data center business recognizes $5.7 million in service fee revenue, with a slight decrease due to customer arrangements directly with utility providers.
- Operating costs and expenses decrease to $13.2 million for Q4 2023, with reductions in cost of revenue, sales and marketing expenses, and general and administrative expenses.
- Net gain on disposal of cryptocurrency assets is $1.5 million for Q4 2023, while impairment of cryptocurrency assets decreases.
- BIT Mining's net loss including continuing and discontinued operations improves to $4.2 million for Q4 2023.
- The company ends the year with cash and cash equivalents of $3.6 million and cryptocurrency assets of $7.6 million.
- The financial results reflect a mix of positive and negative trends, showcasing the company's efforts to adapt to market conditions and optimize operations.
- None.
Insights
The reported financials of BIT Mining Limited show a mixed performance with both positive and negative signals for investors. The increase in revenues for the fourth quarter of 2023 compared to the same period in 2022 indicates a successful scaling of operations, particularly in the DOGE/LTC mining segment, which saw a significant increase in hash power. However, the quarter-over-quarter decrease in revenues and the full-year revenue drop from 2022 to 2023 suggest that the company is experiencing volatility in its operations, likely influenced by fluctuating cryptocurrency prices and mining difficulties.
The substantial year-over-year reduction in operating and net losses is a positive development, reflecting the company's efforts to streamline operations and reduce costs. This is particularly evident in the reduction of operating costs and expenses and the significantly lower impairment losses on cryptocurrency assets and property and equipment. These improvements in operational efficiency could be seen as a positive indicator of management's ability to adapt to challenging market conditions.
However, the sale of the mining pool business for US$5 million, while strategic, may reflect a need to liquidate assets for liquidity or a shift in business focus. This divestiture, along with the reported net losses, suggests that BIT Mining is undergoing a significant transition that could affect its future performance. Investors should consider the potential risks and benefits of these strategic shifts when evaluating the company's long-term prospects.
The cryptocurrency mining industry is characterized by its high volatility and dependency on the fluctuating prices of digital assets. BIT Mining's financial results highlight the company's responsiveness to these market conditions, as evidenced by the decrease in costs and expenses, which could be partially attributed to lower electricity rates and direct arrangements with utility service providers.
BIT Mining's focus on its self-mining business, as shown by the increased hash rate capacity and production of DOGE/LTC, positions the company within the competitive landscape of cryptocurrency miners. However, the decrease in service fee revenue from the data center operation in the fourth quarter of 2023 points to potential challenges in maintaining consistent revenue streams from hosting services. This could signal a need to reevaluate the data center business model or renegotiate customer contracts to ensure more stable revenues.
Investors should take note of the company's non-GAAP measures, which exclude significant expenses such as share-based compensation and impairment charges. While these measures provide a view of the company's operational performance excluding non-recurring costs, they also highlight the impact of such costs on the company's GAAP financials. The reconciliation of non-GAAP to GAAP measures is critical for understanding the full picture of the company's financial health.
The performance of BIT Mining must be contextualized within the broader cryptocurrency market dynamics. The company's increase in hash rate capacity and the resultant rise in DOGE/LTC production align with the general trend in the industry towards greater mining efficiency. However, the reported decrease in revenues from the third to the fourth quarter, despite the increase in production, suggests that BIT Mining may be facing increasing mining difficulty or lower cryptocurrency prices, which could impact profitability.
The impairment of cryptocurrency assets and property and equipment has decreased significantly from the previous year, indicating either an improvement in asset management or a more favorable market environment for cryptocurrencies. However, the reported net losses, including from discontinued operations, underscore the inherent risks of the cryptocurrency mining sector, such as price volatility and regulatory uncertainty.
With the disposal of the mining pool business and the reclassification of this segment as a discontinued operation, BIT Mining is signaling a strategic pivot that may affect its future revenue streams and market positioning. The company's ability to adapt its strategy and operations in response to the rapidly evolving cryptocurrency landscape will be critical for its long-term success.
On December 28, 2023, the Company entered into an agreement with Esport – Win Limited, a
Fourth Quarter 2023 Highlights for Continuing Operations
- Revenues were
US for the fourth quarter of 2023, representing an increase of$10.4 million US from$3.2 million US for the fourth quarter of 2022, and a decrease of$7.2 million US from$1.2 million US for the third quarter of 2023.$11.6 million - Operating loss was
US for the fourth quarter of 2023, representing a significant decrease of$1.6 million US from$36.7 million US for the fourth quarter of 2022, and a decrease of$38.3 million US from$2.5 million US for the third quarter of 2023.$4.1 million - Non-GAAP operating loss1 was
US for the fourth quarter of 2023, compared with non-GAAP operating loss of$1.3 million US for the fourth quarter of 2022, and non-GAAP operating loss of$15.7 million US for the third quarter of 2023.$4.1 million - Net loss attributable to BIT Mining was
US for the fourth quarter of 2023, compared with net loss attributable to BIT Mining of$0.8 million US for the fourth quarter of 2022, and net loss attributable to BIT Mining of$40.0 million US for the third quarter of 2023.$4.7 million - Non-GAAP net loss1 attributable to BIT Mining was
US million for the fourth quarter of 2023, compared with non-GAAP net loss attributable to BIT Mining of$0.9 US for the fourth quarter of 2022, and non-GAAP net loss attributable to BIT Mining of$15.1 million US for the third quarter of 2023.$3.9 million - Basic and diluted losses per American Depositary Share ("ADS")2 attributable to BIT Mining Limited including from continuing operations and discontinued operations for the fourth quarter of 2023 were
US .$0.38 - Non-GAAP basic and diluted losses per ADS2 attributable to BIT Mining Limited including from continuing operations and discontinued operations for the fourth quarter of 2023 were
US .$0.39
Full Year 2023 Highlights for Continuing Operations
- Revenues were
US for the full year 2023, compared with revenues of$43.1 million US for the full year 2022.$57.0 million - Operating loss was
US for the full year 2023, compared with operating loss of$12.9 million US for the full year 2022.$88.1 million - Non-GAAP operating loss1 was
US for the full year 2023, compared with non-GAAP operating loss of$11.9 million US for the full year 2022.$42.1 million - Net loss attributable to BIT Mining was
US for the full year 2023, compared with net loss attributable to BIT Mining of$11.1 million US for the full year 2022.$74.8 million - Non-GAAP net loss1 attributable to BIT Mining was
US for the full year 2023, compared with non-GAAP net loss attributable to BIT Mining of$9.9 million US for the full year 2022.$26.6 million - Basic and diluted losses per ADS2 attributable to BIT Mining Limited including from continuing operations and discontinued operations for the full year 2023 were
US .$1.31 - Non-GAAP basic and diluted losses per ADS2 attributable to BIT Mining Limited including from continuing operations and discontinued operations for the full year 2023 were
US .$1.21
Full Year 2023 Highlights for Discontinued Operations
- Net loss from discontinued operations, net of taxes was
US for the full year 2023, compared with net loss from discontinued operations, net of taxes of$3.4 million US for the full year 2022. The year-over-year decrease of$80.6 million US was mainly attributable to the impairment of intangible assets in the amount of$77.2 million US and impairment of goodwill in the amount of$48.6 million US in the year of 2022 associated with the discontinued operations.$26.6 million
1 Non-GAAP financial measures exclude the impact of share-based compensation expenses, impairment of intangible assets, impairment of property and equipment, impairment of equity investments, 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 |
Fourth Quarter 2023 Financial Results for Continuing Operations
Revenues
Revenues were mainly comprised of
Self-mining
As of today, the total hash rate capacity of our DOGE/LTC mining machines in operation is approximately 24,766.0 GH/s. For the three months ended December 31, 2023, we produced 38.3 million DOGE and 10,615 LTC from our DOGE/LTC cryptocurrency mining operations and recognized revenue of approximately
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 56.63 PH/s. For the three months ended December 31, 2023, we produced 21 BTC from our BTC cryptocurrency mining operations and recognized revenue of approximately
Data Center Operation
During the fourth quarter of 2023, our 82.5 megawatt space (the "82.5 Megawatt Space") at the Ohio Mining Site recognized approximately
Overall
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 nil for the fourth quarter of 2023, compared with
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 third and fourth quarters of 2023 and was
Operating Loss from continuing operations
Operating loss from continuing operations was
Non-GAAP operating loss from continuing operations was
Net Loss Attributable to BIT Mining including from continuing operations and discontinued operations
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 December 31, 2023, the Company had cash and cash equivalents of
Cryptocurrency Assets
As of December 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 operations in cryptocurrency mining, data center operation and mining machine manufacturing. The Company is strategically creating long-term value across the industry with its cryptocurrency ecosystem. Anchored by its cost-efficient data centers that strengthen its profitability with steady cash flow, the Company also conducts self-mining operations that enhance its marketplace resilience by leveraging self-developed and purchased mining machines to seamlessly adapt to dynamic cryptocurrency pricing. The Company also owns 7-nanometer BTC chips and has strong capabilities in the development of LTC/DOGE miners and ETC miners.
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, 2022 | December 31, 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 5,371 | 3,575 | ||||||
Restricted cash | 126 | - | ||||||
Short-term investment | 2,360 | - | ||||||
Accounts receivable | 3,575 | 2,873 | ||||||
Prepayments and other current assets | 8,310 | 12,723 | ||||||
Cryptocurrency assets | 5,573 | 7,629 | ||||||
Current assets of discontinued operations | 10,021 | 13,712 | ||||||
Total current assets | 35,336 | 40,512 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 27,209 | 22,833 | ||||||
Intangible assets, net | 3,299 | 2,033 | ||||||
Deposits | 2,387 | 2,467 | ||||||
Long-term investments | 8,049 | 6,307 | ||||||
Right-of-use assets | 4,135 | 3,752 | ||||||
Long-term prepayments and other non-current assets | 6,363 | 47 | ||||||
Non-current assets of discontinued operations | 26 | - | ||||||
Total non-current assets | 51,468 | 37,439 | ||||||
TOTAL ASSETS | 86,804 | 77,951 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 3,672 | 2,291 | ||||||
Accrued payroll and welfare payable | 747 | 458 | ||||||
Accrued expenses and other current liabilities | 4,825 | 4,335 | ||||||
Income tax payable | 73 | 76 | ||||||
Operating lease liabilities - current | 1,367 | 1,413 | ||||||
Current liabilities of discontinued operations | 20,155 | 27,605 | ||||||
Total current liabilities | 30,839 | 36,178 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities - non-current | 2,837 | 2,339 | ||||||
Total non-current liabilities | 2,837 | 2,339 | ||||||
TOTAL LIABILITIES | 33,676 | 38,517 | ||||||
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 | 621,837 | ||||||
Treasury shares | (21,604) | (21,604) | ||||||
Accumulated deficit and statutory reserve | (542,169) | (556,597) | ||||||
Accumulated other comprehensive loss | (3,960) | (4,256) | ||||||
Total shareholders' equity | 53,128 | 39,434 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 86,804 | 77,951 | ||||||
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 | Twelve Months Ended | |||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
Revenues | 7,168 | 11,639 | 10,407 | 57,025 | 43,101 | |||||||||||||||||
Operating costs and | ||||||||||||||||||||||
Cost of revenue | (16,417) | (10,763) | (8,935) | (61,195) | (39,147) | |||||||||||||||||
Sales and marketing | (27) | (33) | (256) | (336) | (378) | |||||||||||||||||
General and | (5,951) | (4,184) | (4,054) | (21,946) | (19,153) | |||||||||||||||||
Service development | (481) | (38) | - | (2,213) | (874) | |||||||||||||||||
Total operating costs | (22,876) | (15,018) | (13,245) | (85,690) | (59,552) | |||||||||||||||||
Other operating income | 135 | - | 86 | 115 | 220 | |||||||||||||||||
Government grant | 2 | - | - | 29 | - | |||||||||||||||||
Other operating | (1,750) | (995) | (197) | (3,234) | (1,494) | |||||||||||||||||
Net gain (loss) on | 3,711 | 932 | 1,531 | (5,384) | 7,074 | |||||||||||||||||
Impairment of | (2,097) | (691) | (163) | (9,396) | (2,280) | |||||||||||||||||
Changes in fair value of | - | - | - | 1,247 | - | |||||||||||||||||
Impairment of property | (22,641) | - | - | (35,224) | - | |||||||||||||||||
Impairment of | - | - | - | (7,539) | - | |||||||||||||||||
Operating loss | (38,348) | (4,133) | (1,581) | (88,051) | (12,931) | |||||||||||||||||
Other income | 531 | (5) | 395 | 9,031 | 797 | |||||||||||||||||
Interest income | 25 | 200 | - | 150 | 242 | |||||||||||||||||
Interest expense | - | - | - | (218) | - | |||||||||||||||||
Gain from equity | 8 | - | - | 164 | 939 | |||||||||||||||||
Impairment of long- | (2,250) | - | - | (2,250) | - | |||||||||||||||||
Gain from disposal of | - | - | - | 3,340 | - | |||||||||||||||||
Changes in fair value of | - | (808) | 423 | - | (110) | |||||||||||||||||
Loss before income tax | (40,034) | (4,746) | (763) | (77,834) | (11,063) | |||||||||||||||||
Income tax benefits | - | - | - | - | - | |||||||||||||||||
Net loss from continuing | (40,034) | (4,746) | (763) | (77,834) | (11,063) | |||||||||||||||||
Net (loss) income from | (69,123) | 387 | (3,455) | (80,593) | (3,365) | |||||||||||||||||
Net loss | (109,157) | (4,359) | (4,218) | (158,427) | (14,428) | |||||||||||||||||
Less: Net loss | - | - | - | (3,012) | - | |||||||||||||||||
Net loss attributable to | (109,157) | (4,359) | (4,218) | (155,415) | (14,428) | |||||||||||||||||
Other comprehensive | ||||||||||||||||||||||
Foreign currency | 236 | (44) | 188 | (1,735) | (296) | |||||||||||||||||
Other comprehensive | 236 | (44) | 188 | (1,735) | (296) | |||||||||||||||||
Comprehensive loss | (108,921) | (4,403) | (4,030) | (160,162) | (14,724) | |||||||||||||||||
Less: comprehensive | - | - | - | (3,142) | - | |||||||||||||||||
Comprehensive loss | (108,921) | (4,403) | (4,030) | (157,020) | (14,724) | |||||||||||||||||
Weighted average | ||||||||||||||||||||||
Basic | 1,063,813,210 | 1,111,232,309 | 1,111,232,309 | 871,036,499 | 1,102,373,814 | |||||||||||||||||
Diluted | 1,063,813,210 | 1,111,232,309 | 1,111,232,309 | 871,036,499 | 1,102,373,814 | |||||||||||||||||
Losses per share | ||||||||||||||||||||||
Net loss from | (0.04) | (0.00) | (0.00) | (0.09) | (0.01) | |||||||||||||||||
Net (loss) income from | (0.06) | 0.00 | (0.00) | (0.09) | (0.00) | |||||||||||||||||
Net loss | (0.10) | (0.00) | (0.00) | (0.18) | (0.01) | |||||||||||||||||
Losses per ADS* | ||||||||||||||||||||||
Net loss from | (3.76) | (0.43) | (0.07) | (8.59) | (1.00) | |||||||||||||||||
Net (loss) income from | (6.50) | 0.04 | (0.31) | (9.25) | (0.31) | |||||||||||||||||
Net loss | (10.26) | (0.39) | (0.38) | (17.84) | (1.31) | |||||||||||||||||
* 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 | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
Operating loss from continuing operations | (38,348) | (4,133) | (1,581) | (88,051) | (12,931) | |||||||||||||||
Adjustment for share-based compensation | - | - | 276 | 4,474 | 1,030 | |||||||||||||||
Adjustment for impairment of intangible assets | - | - | - | 7,539 | - | |||||||||||||||
Adjustment for impairment of property and | 22,641 | - | - | 35,224 | - | |||||||||||||||
Adjustment for changes in fair value of contingent | - | - | - | (1,247) | - | |||||||||||||||
Adjusted operating loss (non-GAAP) from | (15,707) | (4,133) | (1,305) | (42,061) | (11,901) | |||||||||||||||
Net loss attributable to BIT Mining Limited | (109,157) | (4,359) | (4,218) | (155,415) | (14,428) | |||||||||||||||
Net (loss) income attributable to BIT Mining | (69,123) | 387 | (3,455) | (80,593) | (3,365) | |||||||||||||||
Net loss attributable to BIT Mining Limited | (40,034) | (4,746) | (763) | (74,822) | (11,063) | |||||||||||||||
Adjustment for share-based compensation | - | - | 276 | 4,474 | 1,030 | |||||||||||||||
Adjustment for impairment of intangible | - | - | - | 7,539 | - | |||||||||||||||
Adjustment for impairment of equity | 2,250 | - | - | 2,250 | - | |||||||||||||||
Adjustment for impairment of property | 22,641 | - | - | 35,224 | - | |||||||||||||||
Adjustment for changes in fair value of | - | 808 | (423) | - | 110 | |||||||||||||||
Adjustment for changes in fair value of | - | - | - | (1,247) | - | |||||||||||||||
Adjusted net loss attributable to BIT Mining | (15,143) | (3,938) | (910) | (26,582) | (9,923) | |||||||||||||||
Net loss from discontinued operations, net of | (69,123) | 387 | (3,455) | (80,593) | (3,365) | |||||||||||||||
Adjustment for impairment of intangible assets | 48,555 | - | - | 48,555 | - | |||||||||||||||
Adjustment for impairment of goodwill | 26,569 | - | - | 26,569 | - | |||||||||||||||
Adjusted net income (loss) attributable to BIT | 6,001 | 387 | (3,455) | (5,469) | (3,365) | |||||||||||||||
Adjusted net loss attributable to BIT Mining | (9,142) | (3,551) | (4,365) | (32,051) | (13,288) | |||||||||||||||
Weighted average number of Class A and | ||||||||||||||||||||
Basic | 1,063,813,210 | 1,111,232,309 | 1,111,232,309 | 871,036,499 | 1,102,378,814 | |||||||||||||||
Diluted | 1,063,813,210 | 1,111,232,309 | 1,111,232,309 | 871,036,499 | 1,102,373,814 | |||||||||||||||
Losses per share attributable to BIT Mining | ||||||||||||||||||||
Adjusted net loss from continuing operations | (0.01) | (0.00) | (0.00) | (0.03) | (0.01) | |||||||||||||||
Adjusted net (loss) income from discontinued operations | 0.00 | 0.00 | (0.00) | (0.01) | (0.00) | |||||||||||||||
Adjusted net loss (non-GAAP) | (0.01) | (0.00) | (0.00) | (0.04) | (0.01) | |||||||||||||||
Losses per ADS* attributable to BIT Mining | ||||||||||||||||||||
Adjusted net loss from continuing operations (non-GAAP) | (1.42) | (0.35) | (0.08) | (3.05) | (0.90) | |||||||||||||||
Adjusted net (loss) income from discontinued operations | 0.56 | 0.03 | (0.31) | (0.63) | (0.31) | |||||||||||||||
Adjusted net loss (non-GAAP) | (0.86) | (0.32) | (0.39) | (3.68) | (1.21) | |||||||||||||||
* American Depositary Shares, which are traded on the NYSE. Each ADS represents 100 Class A ordinary shares of the Company. |
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SOURCE BIT Mining Limited
FAQ
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