NEW YORK, Dec. 7, 2022 /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 third quarter ended September 30, 2022.

Financial Highlights for the Third Quarter 2022

• Bitcoin mining revenue was $9.1 million for the third quarter of 2022. Revenue from Ethereum mining was non-meaningful.
• The Company had cash, cash equivalents and restricted cash of $33.6 million, and total liquidity (defined as cash equivalents and restricted cash, USDC and digital assets) of approximately $68.0 million, as of September 30, 2022. Total assets were $164.7 million as of September 30, 2022. Shareholders' equity amounted to $158.2 million as of September 30, 2022.
• Adjusted EBITDA^[1] was $(4.3) million, or $0.05 loss per share for the three-month ended September 30, 2022.

Operational Highlights for the Third Quarter 2022

• The Company earned 429.1 bitcoins during the quarter. Factors impacting production included the pace of the Company's ongoing miner deployment program, and growth in the overall bitcoin network hash rate. The Company earned 0.50 ETH from proof-of-work mining during the quarter.
• Treasury holdings of BTC and ETH were 943.1 and 5,261.8, with a fair market value of approximately $18.3 million and $7.0 million on September 30, 2022, respectively. The BTC equivalent^[2] of our digital asset holdings as of September 30, 2022 (defined as if all ETH and USDC holdings were converted into BTC as of that date) was approximately 1,768.8 BTC.
• The Company owned 38,032 bitcoin miners and 730 Ethereum miners as of September 30, 2022, with an estimated maximum total hash rate of 2.7 EH/s and 0.3 TH/s, respectively.
• The Company's active hash rate of its bitcoin mining fleet was approximately 1.35 EH/s as of September 30, 2022.
• Approximately 79% of our fleet's run-rate electricity consumption was generated from carbon-free energy sources as of September 30, 2022, compared to 69% as of June 30, 2022. 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.
• In the third quarter, the Company finalized an agreement for 5 megawatts of incremental hosting capacity to power its miners. The facility is located in Canada and primarily utilizes hydroelectric energy.
• The Company sold 1,106 MicroBT Whatsminer M21S miners and 9 MicroBT Whatsminer M20S miners and wrote off 1 Innosilicon A10 series ETH miner during the nine months ended September 30, 2022.
• Management believes that the Company has avoided most, if not all, operational exposure to the Compute North bankruptcy that commenced in September 2022.
• The Company's service agreement with Compute North, and ownership of two facilities hosting the Company's miners, were transferred to a third party prior to the bankruptcy filing.
• The Company is in process of confirming this counterparty is in receipt of all Company assets.
• In the interim, as a precaution pending such confirmation, the Company has timely filed as an unsecured creditor of Compute North.

Management Commentary

"We are pleased to report that Bit Digital produced 429 bitcoin during the third quarter of 2022, representing sequential growth of over 115% over the second quarter. This growth highlights our continued progress as our active hash rate increased to 1.35 EH, compared to 0.75 EH at the end of June. We continue to work towards our goal of full fleet deployment; however, we will only seek to rack our miners if the economics present an acceptable return from doing so. We strive to maximize returns rather than growth, and to avoid the pitfalls of unbridled expansion that have impaired several participants across the sector.

Our hosting portfolio expanded during the quarter with the addition of a new 5 MW hosting agreement with a provider in Canada at a location that is primarily hydro powered. Securing the most economic and ecofriendly hosting remains a top priority for the company. We are actively evaluating several new hosting opportunities and continue to strategically target smaller sites to minimize both site and counterparty risk.

The industry is currently negotiating significant macro headwinds as the price of bitcoin and other digital assets have come under pressure, helping to precipitate a series of negative events across the ecosystem. We are well positioned against this backdrop with a pristine balance sheet, no debt obligations, no capex or miner purchase obligations, and a healthy liquidity position. We ended the third quarter with $33.6 million in cash and restricted cash, $9.1 million of USDC and $25.3 million of digital assets, for total liquidity of $68.0 million. We remain focused on preserving the strength of our balance sheet, and note that our liquidity position provides flexibility to pursue strategic growth opportunities. We expect the opportunity set will only ripen over time as more mining equipment and companies are liquidated out of distress.

We are excited to announce that we have commenced Ethereum staking operations alongside our core bitcoin mining business. This diversification into an additional blue-chip digital asset ecosystem carries the goal of creating a new, predictable, and recurring stream of digital rewards. Combined, we believe bitcoin mining and ETH staking are complementary business lines that can enhance our overall margin and investment profile. Given our constructive outlook for both BTC and ETH, we believe this diversification is beneficial and see value in having the notional ETH position on our balance sheet compound over time. We believe that this strategy will ultimately maximize value for all stakeholders."

About Bit Digital

Bit Digital, Inc. is a bitcoin mining company headquartered in New York City. Our mining operations are located in North America. 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 most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2021. 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.