NEW YORK, June 12, 2023  /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) (the "Company"), a digital asset mining company headquartered in New York City, today announced its unaudited financial results for the first quarter ended March 31, 2023.

Financial Highlights for the First Quarter 2023

• Total revenue was $8.3 million for the first quarter of 2023. The majority of revenue was earned from our bitcoin mining business.
• The Company had cash, cash equivalents and restricted cash of $29.2 million, and total liquidity (defined as cash equivalents and restricted cash, USDC, and the fair market value of digital assets) of approximately $71.3 million, as of March 31, 2023.
• Total assets were $92.2 million as of March 31, 2023. Shareholders' equity amounted to $87.0 million as of March 31, 2023.
• Adjusted EBITDA^[1] was $1.5 million for the three-month period ended March 31, 2023.
• Adjusted earnings per share^[2] was $0.01 for the three-month period ended March 31, 2023.

Operational Highlights for the First Quarter 2023

• The Company earned 362.0 bitcoins during the quarter. Factors impacting production included the Company's ongoing miner deployment program, curtailment activities, and growth in the overall bitcoin network hash rate.
• The Company paid approximately $0.046 per kilowatt hour to its hosting partners for electricity consumed during the quarter.
• For the three months ended March 31, 2023, we earned 8.7 ETH in native staking and 23.0 rETH-h in Portara liquid staking, respectively.
• Treasury holdings of BTC and ETH were 724.8 and 9,136.2, with a fair market value of approximately $20.6 million and $16.6 million on March 31, 2023, respectively.
• The BTC equivalent^[3] of our digital asset holdings as of March 31, 2023 (defined as if all ETH, sETH-H, LsETH, and USDC holdings were converted into BTC as of that date) was approximately 1,480.0 BTC, or approximately $42.1 million.
• The Company owned 37,676 bitcoin miners and 730 ETH miners as of March 31, 2023, with an estimated maximum total hash rate of 2.6 EH/s and 0.3 TH/s, respectively.
• The Company's active hash rate of its bitcoin mining fleet was approximately 1.25 EH/s as of March 31, 2023.
• Approximately 85% of our fleet's run-rate electricity consumption was generated from carbon-free energy sources as of March 31, 2023. 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.
• On February 24, 2023, the Company closed a strategic investment of $2 million in Auros Global Limited, which is a leading crypto-native algorithmic trading and market making firm that delivers best-in-class liquidity for exchanges and token projects.
• On March 22, 2023, Bit Digital announced a strategic realignment of its executive leadership team. Effective March 31, 2023, Bryan Bullett, the Company's Chief Executive Officer, concluded his term as CEO and assumed the role of Senior Advisor, in which he will lead strategic growth initiatives for the Company. Sam Tabar, previously the Company's Chief Strategy Officer, was appointed CEO.

Subsequent Events

• On April 5, 2023, the Company entered into an amended hosting agreement, pursuant to which Coinmint agreed to provide to the Company an additional 10 MW of mining capacity at Coinmint's hosting facility in Plattsburgh, New York.
• Additionally, the Company entered into an amended hosting agreement with Coinmint on April 27, 2023, pursuant to which Coinmint agreed to provide the Company with up to 10 MW of additional mining capacity at Coinmint's hosting facility in Massena, New York.
• On May 8, 2023, the Company entered into a Master Mining Services Agreement Amendment with Blockbreakers, pursuant to which Blockbreakers, Inc. agreed to provide the Company with four MW of additional mining capacity at its hosting facility in Canada. The Company previously advanced a $400,000 Senior secured Term Loan to Blockbreakers for the purposes of building out this site.
• On May 9, 2023, the Company entered into a Computation Capacity Services Agreement Amendment with GreenBlocks ehf ("GreenBlocks") pursuant to which GreenBlocks. agreed to provide the Company with 8.25 megawatts of incremental hosting capacity at a facility in Reykjanesbaer, Iceland.
• On April 28, 2023, we entered into a purchase agreement for 3,600 S19 miners.
• On May 12, 2023, we entered into a purchase agreement for 3,000 S19J Pro miners.

Management Commentary

"The first quarter of 2023 marked another pivotal milestone for Bit Digital as the industry emerged from the depths of the downturn and macro conditions became incrementally more favorable. Our focus throughout 2022 was primarily on ensuring we maintained a strong balance sheet and remained nimble to endure a potentially protracted downturn. As we progress in 2023, we remain committed to preserving our balance sheet while adopting a more opportunistic approach to capitalize on compelling value propositions in the market. Moving forward, we will continue to focus on what we can control and setting the stage for long-term value creation for all Bit Digital stakeholders.   

We continue to make strong progress towards our goal for our mining operations to become entirely carbon free. As of March 31, 2023, our mining operations were approximately 85% carbon-free, which is roughly flat from the prior quarter. However, if you remove the contribution from one hosting facility that we exited at the end of March from the calculation, our fleet would have been powered by approximately 98% carbon-free energy sources, and we expect to remain in that range for Q2 and going forward.

Subsequent to quarter-end, Bit Digital finalized new hosting agreements for more than 30 MW in aggregate with three separate hosting partners. Importantly, these hosting sites all utilize energy that is almost entirely carbon-free. We have executed a series of opportunistic mining purchase orders to fill this capacity, bringing us closer to our target of doubling our active hash rate this year. Moving forward, we will continue to evaluate strategic growth opportunities while prioritizing financial agility throughout the entire digital asset cycle.

We are excited about our recent entry into the Icelandic market which we announced in May 2023. Diversifying our operations across geographies and jurisdictions is a strategic focus for us, and we believe that Iceland's clean energy abundance and supportive government policies provide an ideal environment for our mining operations. Iceland is a top priority for future expansion of our mining business.

We remain committed to expanding our proof-of-stake operations and reaching our target to have approximately half of our digital assets position actively staked. As a point of clarification, Bit Digital stakes ETH for our own account and does not offer staking services to individuals or enterprises. We believe that staking and validating Ethereum is synergistic to our bitcoin business and creates a 'flywheel effect' whereby staking rewards can be compounded or redeployed. We remain committed to both BTC and ETH and believe our strategy provides exposure to the economics of the two leading digital assets."

About Bit Digital

Bit Digital, Inc. is a sustainability focused generator of digital assets headquartered in New York City. Our mining operations are located in the US, Canada, and Iceland. For additional information, please contact This email address is being protected from spambots. You need JavaScript enabled to view it. 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, 2022. 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.