NEW YORK, Nov. 11, 2020 /PRNewswire/ -- Bit Digital, Inc.
(Nasdaq: BTBT), a Nasdaq listed Bitcoin mining company
headquartered in New York
announced that it had entered into asset purchase agreements with
certain non-U.S. investors to issue an aggregate of 4,344,711
ordinary shares at the price of $3.20
per share, or total consideration of $13,903,088 in exchange for bitcoin miners.
Once the transaction closes, upon Nasdaq listing of the shares,
the total hash power capacity of the Company will increase by
approximately 1,000 Ph/s from 1,250 Ph/s to 2,250 Ph/s. The Company
commenced the bitcoin mining business in February, 2020. By
June 30, 2020, the Company had only
310 Ph/s hash power and by September 30,
2020, the hash power had increased to 1,250 Ph/s.
Also, the first batch of 2,000 M21s previously purchased is
going to be shipped to the United
States this November and is expected to be installed to the
hosting facility by Compute North by the end of December 2020. With more miners being deployed to
the North America facilities, it
is expected to help the Company rebalance its cost structure and
miner geological allocation and further help produce more Bitcoins.
"We are very pleased to announce these agreements to issue
shares in exchange for bitcoin miners, which will further
consolidate our position among listed companies in bitcoin mining
industry in terms of the operating hash rate capacity. The revenue
and the number of bitcoins earned of the Company are expected to
have a continuous increase in 2020 Q4 with the new deployment of
additional miners," Erke Huang, the
Chief Financial Officer of the Company said. "The management of the
Company will continue to seek to expand the scale of bitcoin mining
through the purchase of the most economic efficient miners and
diverse our miners' geological allocations to further reduce our
utility cost and increase our profit margin. It is another big step
for Bit Digital since the spin-off of our prior assets and to focus
on our bitcoin mining business. With the extensive experience and
highly effective execution under our management, the Company is
growing fast and investors should have good confidence in both Bit
Digital and Bitcoin Mining industry."
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of Bit Digital, Inc., and its
subsidiary companies. All statements, other than statements of
historical fact included herein are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions, involve known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that
are filed with the Securities and Exchange Commission and available
on its website at http://www.sec.gov. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking
statements.
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SOURCE Bit Digital, Inc.