NEW
YORK, Aug. 19, 2024 /PRNewswire/ -- Bit
Digital, Inc. (Nasdaq: BTBT) (the "Company"), a sustainable
platform for digital assets and artificial intelligence ("AI")
infrastructure headquartered in New York
City, today announced its unaudited financial results for
the Second Quarter ended June 30,
2024.
Financial Highlights for the Second Quarter of 2024
- Total revenue was $29.0 million
for the Second Quarter of 2024, a 220% increase compared to the
Second Quarter of 2023. The increase was primarily driven by the
commencement of our high performance computing services ("HPC")
business and by a higher realized bitcoin price.
- Revenue from bitcoin mining was $16.1 million for the Second Quarter of 2024, an
80% increase compared to the prior year's quarter. The Company's
HPC recognized $12.5 million of
revenue during the quarter compared to nil the prior year.
- The Company had cash, cash equivalents and restricted cash of
$61.4 million, and total liquidity
(defined as cash, cash equivalents and restricted cash, USDC, and
the fair market value of digital assets) of approximately
$191.9 million[1], as of
June 30, 2024.
- Total assets were $315.5 million
and Shareholders' Equity amounted to $295.3
million as of June 30,
2024.
- Adjusted EBITDA[2] was $(3.8)
million for the Second Quarter of 2024 compared to
$1.9 million for the Second Quarter
of 2023. Adjusted EBITDA includes an $11.5
million unrealized loss on digital assets.
- GAAP loss per share was $0.09 on
a fully diluted basis for the Second Quarter of 2024 compared to a
loss per share of $0.03 for the
Second Quarter of 2023.
Operational Highlights for the Second Quarter of 2024
- The Company earned 244.2 bitcoins during the Second Quarter of
2024, a 23% decrease from the prior year. The decline was primarily
driven by a reduction in block rewards following the halving event
in April 2024 and by an increase in
network difficulty.
- The Company paid approximately $0.047 per kilowatt hour to its hosting partners
for electricity consumed during the Second Quarter of 2024.
- The average fleet efficiency for the active fleet was
approximately 27.9 J/TH as of June 30,
2024.
- The Company earned 109.4 ETH from native staking
in the Second Quarter of 2024.
- Treasury holdings of BTC and ETH were 585.6 and
27,226.21, respectively, with a fair market value of approximately
$36.7 million and $93.5 million on June 30,
2024, respectively.
- The BTC equivalent[3] of our digital asset holdings
as of June 30, 2024 (defined as if
all ETH and USDC holdings were converted into BTC as
of that date) was approximately 2,082.1 BTC1, or approximately
$130.5 million.
- As of June 30, 2024, we had
50,044 miners owned or operating (in Iceland) for bitcoin mining with
a total maximum hash rate of 4.3 EH/s.
- The Company's active hash rate of its bitcoin
mining fleet was approximately 2.6 EH/s as of June 30, 2024.
- The Company purchased approximately 1,146 bitcoin
mining units during the Second Quarter of 2024.
- Approximately 86% of our fleet's run-rate electricity
consumption was generated from carbon-free energy sources as of
June 30, 2024. These figures are
based on data provided by our hosts, publicly available sources,
and internal estimates, demonstrating our commitment to sustainable
practices in the digital asset mining industry.
- The Company had approximately 17,184 ETH actively
staked in native staking protocols as of June 30, 2024.
- In the second quarter of 2024, the Company finalized an
agreement to supply its existing customer with an additional 2,048
GPUs over a three-year period. To help finance this operation, the
Company entered into a sale-leaseback agreement with a third party,
agreeing to sell 128 AI servers (equivalent to 1,024 GPUs) and
lease them back for three years. In late July, at behest of the
customer, the Company and the customer mutually agreed to
temporarily delay the purchase order so that the customer could
evaluate potentially upgrading the purchase order to include newer
generation Nvidia GPUs. Accordingly, the Company and manufacturer
mutually agreed to delay the Company's purchase pending the
contractual outcome with the Company's customer. The Company
expects to provide additional details about the revised deployment
timeline in the coming weeks. The Company's contract with the
customer remains fully in effect, but may have to be amended to
provide for newer generation GPUs. In early August, the Company
received $30.0 million as a
non-refundable prepayment from its customer, half of which will be
distributed to the Company's leasing partner.
Subsequent Events
- On August 19, 2024, Bit Digital
announced that it had signed a binding term sheet with Boosteroid
Inc. ("Boosteroid"), the world's third-largest cloud gaming
provider. Upon signing a master service agreement ("MSA"),
Boosteroid will place an initial purchase for a starting quantity
of GPU servers with a five-year service duration. Bit Digital will
provide Boosteroid with options to draw down additional servers in
multiples of 100, up to a total of 50,000 GPU servers within five
years after signing the MSA, depending on their deployment plans
and subject to market conditions. The entire 50,000 GPU deployment
represents an aggregate revenue opportunity to Bit Digital in
excess of $700 million over the
five-year term. The initial purchase includes GPU-servers based on
AMD EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUSTeK
Computer Inc. ("ASUS") and AMD for Boosteroid. Deployment is
planned across a network of more than 10 data centers in the U.S.
and Europe. The initial deployment
is scheduled to begin over the next two to three months and is
expected to generate approximately $13
million in revenue to Bit Digital over the five-year term,
or approximately $2.6 million per
year. Bit Digital's entry into a MSA is conditioned upon further
diligence of Boosteroid, customary legal and business reviews,
internal approvals, and execution of an acceptable MSA.
Management Commentary
"The second quarter of 2024 was an important step in the
evolution of Bit Digital. Despite the reduction in block rewards
from the April 'halving event', our total revenue more than doubled
from the prior year, principally aided by the first full quarter of
revenue from our HPC services business. Our balance sheet remains a
key strength that will enable us to withstand recent market
volatility and deploy growth capital into high-return
opportunities.
Mining economics remain challenging, and in the absence of a
material improvement in expected payback periods for mining
equipment, it is unlikely that we will reach our active hash rate
target of 6.0 EH/s by year-end 2024. From the onset of the year, we
have been cautious in terms of exahash growth, preferring to wait
for the post-halving mining environment before enacting material
growth. In the interim, we will focus on high grading our existing
fleet while reserving the right to make opportunistic growth
purchases should the returns profile justify the expenditure.
We continue to view the HPC business as the most attractive use
of incremental growth capex in the current environment. Our
pipeline remains strong and the main bottleneck to date has been a
lack of personnel and man hours to bring contracts to the finish
line. We have started to solve this issue, making our first key
hire for this business earlier this month with a plan to further
expand our personnel and improve our tech stack. Our growth
pipeline remains strong, and we continue to believe we will be able
to reach our $100 million annualized
revenue target by year-end 2024 even if the 2,000 GPU expansion
deployment with our existing customer is pushed into 2025."
About Bit Digital
Bit Digital, Inc. is a sustainable platform for digital assets
and artificial intelligence ("AI") infrastructure headquartered in
New York City. Our
bitcoin mining operations are located in the US,
Canada, and Iceland. For additional information, please
contact ir@bit-digital.com or visit our website
at www.bit-digital.com.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 3.D of our Annual Report on Form 20-F
for the fiscal year ended December 31,
2023. If any material risk was to occur, our business,
financial condition or results of operations would likely suffer.
In that event, the value of our securities could decline and you
could lose part or all of your investment. The risks and
uncertainties we describe are not the only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business operations. In
addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. Future changes in the
network-wide mining difficulty rate or bitcoin hash
rate may also materially affect the future performance of Bit
Digital's production of bitcoin. Actual operating
results will vary depending on many factors including network
difficulty rate, total hash rate of the network, the operations of
our facilities, the status of our miners, and other factors. See
"Safe Harbor Statement" below.
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, involving 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.
[1] This figure
excludes approximately 2,701 ETH that were transferred to an
internally managed fund.
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[2] Adjusted
EBITDA refers to earnings before interest expense, income tax
expense and depreciation and amortization expense ("EBITDA")
adjusted to eliminate the effects of certain non-cash and / or
non-recurring items. See disclosure about Non-GAAP Financial
Measures on page 24 below.
|
[3] "BTC
equivalent" is a hypothetical illustration of the value of our
digital asset portfolio in bitcoin terms. BTC equivalent is defined
as if all non-BTC digital assets, comprised of ETH and USDC, were
converted into BTC as of June 30, 2024, and added to our existing
BTC balance. Conversion values are found using the closing price on
coinmarketcap.com.
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SOURCE Bit Digital, Inc.