NEW YORK, Aug. 15, 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 second quarter ended June 30, 2023.

Financial Highlights for the Second Quarter 2023

• Total revenue was $9.0 million for the second quarter of 2023. The majority of revenue was earned from our bitcoin mining business.
• The Company had cash, cash equivalents and restricted cash of $19.8 million, and total liquidity (defined as cash equivalents and restricted cash, USDC, and the fair market value of digital assets) of approximately $64.8 million, as of June 30, 2023.
• Total assets were $100.4 million as of June 30, 2023. Shareholders' equity amounted to $91.7 million as of June 30, 2023.
• Adjusted EBITDA^[1] was $1.9 million for the three-month period ended June 30, 2023.
• Adjusted earnings per share^[2] was $0.02 for the three-month period ended June 30, 2023.

Operational Highlights for the Second Quarter 2023

• The Company earned 318.4 bitcoins during the quarter. Factors impacting production included the relocation of certain miners, curtailment activities, and growth in the overall bitcoin network hash rate.
• The Company paid approximately $0.049 per kilowatt hour to its hosting partners for electricity consumed during the quarter.
• For the three months ended June 30, 2023, we earned 36.3 ETH in native staking and 31.6 ETH in liquid staking, respectively.
• Treasury holdings of BTC and ETH were 613.2 and 11,738.8, with a fair market value of approximately $18.7 million and $22.7 million on June 30, 2023, respectively.
• The BTC equivalent^[3] of our digital asset holdings as of June 30, 2023 was approximately 1,573.4 BTC, or approximately $48.0 million.
• As of June 30, 2023, the Company had 44,886 bitcoin miners owned or operating (in Iceland) and 730 ETH miners, with an estimated maximum total hash rate of 3.4 EH/s and 0.3 TH/s, respectively.
• The Company's active hash rate of its bitcoin mining fleet was approximately 1.78 EH/s as of June 30, 2023.
• Approximately 99% of our fleet's run-rate electricity consumption was generated from carbon-free energy sources as of June 30, 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.
• The Company had approximately 11,716 ETH actively staked in native and liquid staking protocols as of June 30, 2023. Approximately 9,312 were natively staked and 2,404 ETH were deployed in liquid staking protocols as of that date.
• 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 megawatts ("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 MW of incremental hosting capacity at a facility in Iceland. On June 1, 2023, Bit Digital revised its agreement with GreenBlocks to expand the Company's mining capacity in Iceland to approximately 10.7 MW. As of the date of this report, advances of $6.4 million have been financed by the Company to GreenBlocks, and approximately 3,300 miners are operational at the GreenBlocks site.
• In May 2023, the Company transferred a total of 129 BTC to Auros Global Limited ("Auros"), as collateral to support yield optimization strategies which Auros is undertaking on the Company's behalf. By June 30, 2023, 84 BTC remained collateralized with Auros. We received 45 BTC back on July 28, 2023, and anticipate the release of the remaining 39 BTC on or about August 28, 2023.
• During the quarter, the Company entered into agreements to purchase 3,600 S19 miners and 3,300 S19J Pro+ miners.

Management Commentary

"The second quarter of 2023 was a transitional quarter for Bit Digital as we exited certain legacy hosting relationships, forged new strategic partnerships, and began to execute on our growth initiatives. As of June 30, 2023, our mining operations were approximately 99% carbon-free, a significant improvement from the prior quarter and nearly achieving our goal for our mining operations to become entirely carbon-free. We continue to believe that our industry can only reach its full potential if we remain leaders in environmental sustainability, and Bit Digital intends to lead by example.

We expanded existing hosting relationships and forged new partnerships during the quarter, which represented approximately 35 MW of additional mining capacity. We concurrently announced the purchase of new miners to fill this capacity and continue to canvas the market for attractive opportunities to deploy capital and expand our fleet. We expect to reach our 2.6 EH/s goal for our active fleet by the end of October 2023, and we now expect to reach 3.5 EH/s by the end of December 2023. Our balance sheet remains debt-free, and we maintain a healthy liquidity position. We will continue to balance future growth aspirations with our goal of remaining financially flexible into the 'halving' in 2024.

We are proud to have expanded into the Icelandic market during the second quarter, and now have operations across three countries: the U.S., Canada, and Iceland. Diversifying our operations across geographies and regulatory jurisdictions is a strategic priority as we seek to mitigate existential risk. Diversification will remain a key tenet of our growth strategy alongside securing the most economic and ecofriendly hosting arrangements.

Revenue from our ETH staking business more than doubled sequentially during the quarter, albeit from a low base. Although ETH staking revenue currently represents a modest source of revenue, our goal is for this business to grow into a more meaningful driver of total revenue in the longer term. We aim to establish diversified, non-correlated revenue streams that will help make us more resilient to market cycles and enable us to pursue counter-cyclical growth opportunities. We will continue to evaluate new avenues to help achieve our goal of creating a more durable return profile and ultimately maximizing value for all stakeholders."

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.