BIT Mining Limited Announces Unaudited Financial Results for the First Quarter ended March 31, 2022
BIT Mining Limited (NYSE: BTCM) reported first quarter 2022 revenues of US$296.7 million, down 40.4% from the previous quarter but up 11,292% year-over-year. The company produced 5,420 Ethereum and 166 Bitcoins, generating US$16.0 million and US$6.9 million respectively. Despite a US$3.1 million net loss, improvements were noted in non-GAAP metrics, with a net income of US$1.2 million. Operating costs increased sharply year-over-year due to mining pool expenses. The firm continues to expand its North American operations, particularly in Ohio.
- Revenues of US$296.7 million for Q1 2022, a significant increase from US$2.6 million in Q1 2021.
- Production of 5,420 Ethereum and 166 Bitcoins, driving substantial revenue streams.
- Non-GAAP net income of US$1.2 million for Q1 2022, improving from a loss of US$4.1 million in Q4 2021.
- Operational focus on expanding data centers in North America, particularly in Ohio.
- Q1 2022 revenues decreased by 40.4% from US$497.8 million in Q4 2021.
- A net loss of US$3.1 million in Q1 2022, compared to net income of US$3.3 million in Q1 2021.
- Mining pool revenue fell to US$272.3 million from US$474.9 million in Q4 2021 due to market exit from China.
HONG KONG, May 27, 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 first quarter ended March 31, 2022.
Cryptocurrency Business Progress
BIT Mining is a leading technology-driven cryptocurrency mining company with three primary business segments covering self-mining, mining pool and data center operation. The Company is pursuing its development strategy to focus on cryptocurrency mining operations globally.
As of today, the online total hash rate capacity of our Ethereum mining machines is approximately 4,452.7GH/s. For the three months ended March 31, 2022, we produced 5,420 Ethereum from our Ethereum cryptocurrency mining operations, and recognized revenue of approximately US
As of today, the online total hash rate capacity of our Bitcoin mining machines is approximately 246.1PH/s. For the three months ended March 31, 2022, we produced 166 Bitcoins from our Bitcoin cryptocurrency mining operations, and recognized revenue of approximately US
In terms of our data center business, we have hosted a cryptocurrency mining data center in Ohio (the "Ohio Mining Site"). As of today, we have completed the substation with power capacity of 50 megawatts which are operational at the Ohio Mining Site.
The mining pool subsidiary of the Company, BTC.com, has completely exited the China market, ceased registering new users from China and started to retire accounts of existing users from China since October 2021. Combined with the effect of declines in prices of cryptocurrencies in the first quarter of 2022, mining pool business revenue decreased from US
"We are glad to announce our financial results for the first quarter ended March 31, 2022, as we continue to execute on our strategy to create value within the cryptocurrency ecosystem," said Mr. Xianfeng Yang, CEO of BIT Mining. "Over the past quarter, we focused on our expansion in North America and have made significant progress in the construction of our data centers in Ohio. In the meantime, we continued our Bitcoin and Ethereum mining businesses and the integration of other businesses such as mining pool operation and mining machine manufacturing to create synergies. 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, account system and nodes management. Looking forward, we plan to continue to enhance our value proposition and further strengthen our mining technology."
First Quarter 2022 Highlights for Continuing Operations
- Revenues were US
$296.7 million in the first quarter of 2022, representing a significant decrease of US$201.1 million from US$497.8 million for the fourth quarter of 2021, and a sharp increase of US$294.1 million from US$2.6 million for the first quarter of 2021. Revenues during the first quarter of 2022 primarily consisted of US$272.3 million in revenue contribution from the mining pool business that we began consolidating in our financial statements from April 2021. - Operating loss was US
$4.3 million in the first quarter of 2022, representing a decrease of US$12.8 million from US$17.1 million for the fourth quarter of 2021, and an increase of US$3.0 million from US$1.3 million for the first quarter of 2021. - Non-GAAP operating loss[1] was US
$0.1 million in the first quarter of 2022, as compared with non-GAAP operating loss of US$9.9 million for the fourth quarter of 2021, and non-GAAP operating loss of US$1.3 million for the first quarter of 2021. - Net loss attributable to BIT Mining was US
$3.1 million in the first quarter of 2022, as compared with net loss attributable to BIT Mining of US$11.0 million for the fourth quarter of 2021, and net income attributable to BIT Mining of US$3.3 million for the first quarter of 2021. - Non-GAAP net income[1] attributable to BIT Mining was US
$1.2 million in the first quarter of 2022, as compared with non-GAAP net loss attributable to BIT Mining of US$4.1 million for the fourth quarter of 2021, and non-GAAP net loss attributable to BIT Mining of US$2.2 million for the first quarter of 2021. - Basic and diluted losses per American Depositary Share ("ADS") attributable to BIT Mining Limited for the first quarter of 2022 was US
$0.04 . - Non-GAAP basic and diluted earnings per ADS[1] attributable to BIT Mining Limited for the first quarter of 2022 was US
$0.02 .
[1]Non-GAAP financial measures exclude the impact of share-based compensation expenses, impairment of intangible assets, deferred tax benefit relating to valuation allowance, gain on previously held equity interest, impairment of property and equipment, impairment of cryptocurrencies, net gain or loss on disposal of cryptocurrencies, and changes in fair value of contingent considerations. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in the table at the end of this release. |
First 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 Gain on Disposal of Cryptocurrencies
Net gain on disposal of cryptocurrencies was US
Impairment of Cryptocurrencies
Impairment of cryptocurrencies was US
Changes in Fair Value of Contingent Considerations
Changes in fair value of contingent considerations was US
Impairment of Property and Equipment
Impairment of property and equipment was nil for the first quarter of 2022 and 2021. Impairment of property and equipment 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 income attributable to BIT Mining was US
First 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 first quarter of 2022 and for the fourth quarter of 2021, net loss from discontinued operations, net of taxes was US
Cash and Cash Equivalents and Restricted Cash
As of March 31, 2022, the Company had cash and cash equivalents of US
Cryptocurrency Assets
As of March 31, 2022, the Company had cryptocurrency assets of US
[2]Restricted cash represents deposits in merchant banks yet to be withdrawn. |
About BIT Mining Limited
BIT Mining Limited (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, and data center operation. The Company owns the world's top blockchain browser BTC.com and the comprehensive mining pool business operated under BTC.com that provides multi-currency mining services including BTC, ETH and LTC. The Company has entered into a definitive agreement to acquire a 7-nanometer cryptocurrency mining machine manufacturer, Bee Computing, to complete the Company's vertical integration with its supply chain, increase its self-sufficiency and strengthen its competitive position.
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
To supplement the Company's financial results presented in accordance with U.S. GAAP, the Company uses non-GAAP financial measures, which are adjusted from results based on U.S. GAAP to exclude share-based compensation expenses, impairment of intangible assets, deferred tax benefit relating to valuation allowance, gain on previously held equity interest, impairment of property and equipment, impairment of cryptocurrencies, net gain or loss on disposal of cryptocurrencies, and changes in fair value of contingent considerations. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in table at the end of this release, which provide more details on the non-GAAP financial measures.
Non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of the Company's continuing operations and prospects for the future. Non-GAAP financial information should not be considered a substitute for or superior to U.S. GAAP results. In addition, calculations of this non-GAAP financial information may be different from calculations 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 | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Amounts in thousands of U.S. dollars ("US$"), except for number of shares) | ||||||||
December 31, 2021 | March 31, 2022 | |||||||
US$ | US$ | |||||||
Audited | Unaudited | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 17,670 | 20,914 | ||||||
Restricted cash | 134 | 131 | ||||||
Accounts receivable | 737 | 1,844 | ||||||
Amounts due from related party | - | 5,060 | ||||||
Prepayments and other current assets | 21,525 | 27,694 | ||||||
Cryptocurrency assets | 55,077 | 34,783 | ||||||
Cryptocurrency assets pledged for a loan | - | 9,628 | ||||||
Total current assets | 95,143 | 100,054 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 70,199 | 62,052 | ||||||
Intangible assets, net | 71,931 | 69,565 | ||||||
Deposits | 99 | 99 | ||||||
Long-term investments | 10,050 | 9,375 | ||||||
Right-of-use assets | 6,166 | 5,852 | ||||||
Amounts due from related party - non-current | 11,504 | 10,958 | ||||||
Other non-current assets | 4,455 | 4,442 | ||||||
Goodwill | 26,569 | 26,569 | ||||||
Total non-current assets | 200,973 | 188,912 | ||||||
TOTAL ASSETS | 296,116 | 288,966 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Short term loan | - | 6,306 | ||||||
Accounts payable | 54,438 | 43,310 | ||||||
Amounts due to related party | 8,021 | 7,143 | ||||||
Accrued payroll and welfare payable | 489 | 608 | ||||||
Accrued expenses and other current liabilities | 18,738 | 18,434 | ||||||
Income tax payable | 498 | 494 | ||||||
Operating lease liabilities - current | 2,213 | 2,105 | ||||||
Total current liabilities | 84,397 | 78,400 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities - non-current | 4,569 | 4,235 | ||||||
Total non-current liabilities | 4,569 | 4,235 | ||||||
TOTAL LIABILITIES | 88,966 | 82,635 | ||||||
Shareholders' Equity: | ||||||||
Class A ordinary shares, par value US | 36 | 36 | ||||||
Class A preference shares, par value US | - | - | ||||||
Class B ordinary shares, par value US | - | - | ||||||
Additional paid-in capital | 590,567 | 593,234 | ||||||
Treasury shares | (21,604) | (21,604) | ||||||
Accumulated deficit and statutory reserve | (384,867) | (387,918) | ||||||
Accumulated other comprehensive loss | (2,355) | (2,141) | ||||||
Total BIT Mining Limited shareholders' equity | 181,777 | 181,607 | ||||||
Noncontrolling interests | 25,373 | 24,724 | ||||||
Total shareholders' equity | 207,150 | 206,331 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 296,116 | 288,966 | ||||||
BIT Mining Limited | ||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||
(Amounts in thousands of U.S. dollars ("US$"), | ||||||||||||
except for number of shares, per share (or ADS) data) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
US$ | US$ | US$ | ||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||
Revenues | 2,621 | 497,778 | 296,678 | |||||||||
Operating costs and expenses: | ||||||||||||
Cost of revenue | (1,228) | (491,328) | (290,677) | |||||||||
Sales and marketing expenses | (132) | (271) | (159) | |||||||||
General and administrative expenses | (2,480) | (8,782) | (6,849) | |||||||||
Service development expenses | (63) | (1,207) | (1,107) | |||||||||
Total operating costs and expenses | (3,903) | (501,588) | (298,792) | |||||||||
Other operating income | 36 | 250 | 255 | |||||||||
Other operating expenses | (44) | (9,660) | (903) | |||||||||
Net gain on disposal of cryptocurrencies | - | 4,112 | 4,859 | |||||||||
Impairment of cryptocurrencies | - | (9,342) | (7,673) | |||||||||
Changes in fair value of contingent considerations | - | 13,936 | 1,247 | |||||||||
Impairment of property and equipment | - | (12,572) | - | |||||||||
Impairment of intangible assets | - | (56) | - | |||||||||
Operating loss from continuing operations | (1,290) | (17,142) | (4,329) | |||||||||
Other income, net | 181 | 230 | 532 | |||||||||
Interest income | 16 | - | 72 | |||||||||
Interest expense | (109) | - | (174) | |||||||||
(Loss) gain from equity method investments | (1,005) | (349) | 152 | |||||||||
Gain on previously held equity interest | 5,516 | - | - | |||||||||
Gain from disposal of subsidiaries | - | 91 | - | |||||||||
Income (loss) before income tax | 3,309 | (17,170) | (3,747) | |||||||||
Income tax benefit | - | 359 | - | |||||||||
Net income (loss) from continuing operations | 3,309 | (16,811) | (3,747) | |||||||||
Loss from discontinued operations, net of | (1,313) | - | - | |||||||||
Net loss from discontinued operations, net of | (1,313) | - | - | |||||||||
Net income (loss) | 1,996 | (16,811) | (3,747) | |||||||||
Less: Net loss attributable to noncontrolling | - | (5,796) | (696) | |||||||||
Less: Net loss attributable to noncontrolling | (45) | - | - | |||||||||
Less: Net loss attributable to noncontrolling | (45) | (5,796) | (696) | |||||||||
Net income (loss) attributable to BIT Mining | 2,041 | (11,015) | (3,051) | |||||||||
Other comprehensive income (loss) | ||||||||||||
Share of other comprehensive income of an equity method investee | 631 | - | - | |||||||||
Reclassification into loss from equity method | 131 | - | - | |||||||||
Foreign currency translation (loss) gain | (641) | 714 | 261 | |||||||||
Other comprehensive income, net of tax | 121 | 714 | 261 | |||||||||
Comprehensive income (loss) | 2,117 | (16,097) | (3,486) | |||||||||
Less: Comprehensive loss attributable to | (45) | (5,196) | (649) | |||||||||
Comprehensive income (loss) attributable to BIT Mining Limited | 2,162 | (10,901) | (2,837) | |||||||||
Weighted average number of Class A and Class B | ||||||||||||
Basic | 487,551,175 | 707,716,805 | 710,078,169 | |||||||||
Diluted | 498,573,411 | 707,716,805 | 710,078,169 | |||||||||
Earnings (losses) per share attributable to BIT | ||||||||||||
Net income (loss) from continuing operations | 0.007 | (0.02) | (0.004) | |||||||||
Net loss from discontinued operations | (0.003) | - | - | |||||||||
Net income (loss) | 0.004 | (0.02) | (0.004) | |||||||||
Earnings (losses) per ADS** attributable to BIT | ||||||||||||
Net income (loss) from continuing operations | 0.07 | (0.16) | (0.04) | |||||||||
Net loss from discontinued operations | (0.03) | - | - | |||||||||
Net income (loss) | 0.04 | (0.16) | (0.04) | |||||||||
*The Company has changed its reporting currency from Renminbi ("RMB") to U.S dollars ("USD") for the period | ||||||||||||
** American Depositary Shares, which are traded on the NYSE. Each ADS represents ten 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 U.S. dollars ("US$"), | ||||||||||||
except for number of shares, per share (or ADS) data) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
US$ | US$ | US$ | ||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||
Operating loss from continuing operations | (1,290) | (17,142) | (4,329) | |||||||||
Adjustment for share-based compensation | 33 | 3,344 | 2,667 | |||||||||
Adjustment for impairment of intangible assets | - | 56 | - | |||||||||
Adjustment for impairment of property and | - | 12,572 | - | |||||||||
Adjustment for impairment of cryptocurrencies | - | 9,342 | 7,673 | |||||||||
Adjustment for net gain on disposal of | - | (4,112) | (4,859) | |||||||||
Adjustment for changes in fair value of contingent considerations | - | (13,936) | (1,247) | |||||||||
Adjusted operating loss from continuing | (1,257) | (9,876) | (95) | |||||||||
Net income (loss) attributable to BIT Mining Limited | 3,309 | (11,015) | (3,051) | |||||||||
Net loss attributable to BIT Mining Limited from discontinued operations | (1,268) | - | - | |||||||||
Net income (loss) attributable to BIT Mining | 2,041 | (11,015) | (3,051) | |||||||||
Adjustment for share-based compensation | 33 | 3,344 | 2,667 | |||||||||
Adjustment for impairment of intangible assets | - | 56 | - | |||||||||
Adjustment for deferred tax benefit relating to | - | (359) | - | |||||||||
Adjustment for gain on previously held equity | (5,516) | - | - | |||||||||
Adjustment for impairment of property and | - | 12,572 | - | |||||||||
Adjustment for impairment of cyptocurrencies | - | 9,342 | 7,673 | |||||||||
Adjustment for net gain on disposal of | - | (4,112) | (4,859) | |||||||||
Adjustment for changes in fair value of contingent | - | (13,936) | (1,247) | |||||||||
Adjusted net (loss) income attributable to BIT | (2,174) | (4,108) | 1,183 | |||||||||
Adjusted net loss attributable to BIT | (1,268) | - | - | |||||||||
Adjusted net (loss) income attributable to BIT | (3,442) | (4,108) | 1,183 | |||||||||
Weighted average number of Class A and Class B | ||||||||||||
Basic | 487,551,175 | 707,716,805 | 710,078,169 | |||||||||
Diluted | 498,573,411 | 707,716,805 | 710,078,169 | |||||||||
(Losses) Earnings per share attributable to BIT Mining Limited (non-GAAP)- Basic and Diluted | ||||||||||||
Net (loss) income from continuing operations | (0.004) | (0.01) | 0.002 | |||||||||
Net loss from discontinued operations (non- | (0.003) | - | - | |||||||||
Net (loss) income (non-GAAP) | (0.007) | (0.01) | 0.002 | |||||||||
Losses (Earnings) per ADS** attributable to BIT | ||||||||||||
Net (loss) income from continuing operations (non-GAAP) | (0.04) | (0.06) | 0.02 | |||||||||
Net loss from discontinued operations (non- | (0.03) | - | - | |||||||||
Net (loss) income (non-GAAP) | (0.07) | (0.06) | 0.02 | |||||||||
*The Company has changed its reporting currency from Renminbi ("RMB") to U.S dollars ("USD") for the period | ||||||||||||
** American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares | ||||||||||||
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SOURCE BIT Mining Limited
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