NEW YORK


,


Aug. 30, 2022


/PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (the “Company”), a digital asset mining company headquartered in

New York

, today announced its unaudited financial results for the second quarter ended

June 30, 2022

.

Financial Highlights for the Second Quarter 2022

• Bitcoin mining revenue was
  
  $6.5 million
  
  for the second quarter of 2022. Revenue from Ethereum mining was
  
  $0.3 million
  
• The Company had cash, cash equivalents and restricted cash of
  
  $45.6 million
  
  , and total liquidity (defined as cash and digital assets) of approximately
  
  $72.6 million
  
  , as of
  
  June 30, 2022
  
  . Total assets were
  
  $179.0 million
  
  as of
  
  June 30, 2022
  
  . Shareholders’ equity amounted to
  
  $172.0 million
  
  as of
  
  June 30, 2022
  
  .
• Non-GAAP loss* from operations was
  
  $0.8 million
  
  .
• Non-GAAP net income** was
  
  $0.1 million
  
  , or
  
  $0.00
  
  earnings per share.

* Non-GAAP loss from operations excludes the impact of depreciation of property and equipment, and share-based compensation expense.

** Non-GAAP net income excludes depreciation of property and equipment, share-based compensation expense, impairment of digital assets, gain from disposal of property and equipment, gain from sale of investment securities, and gain from sale of a subsidiary.

Operational Highlights for the Second Quarter 2022

• The Company earned 197.28 bitcoins and 104.29 ETH during the quarter. Factors impacting production included the Company’s ongoing miner redeployment program, previously announced interruptions to certain hosting partners’ operations, growth in the overall bitcoin network hash rate, and the number of days in the quarter.
• Treasury holdings of BTC and ETH were 860.57 and 313.56, with a fair market value of approximately
  
  $15.3 million
  
  and
  
  $0.3 million
  
  on
  
  June 30, 2022
  
  , respectively.
• The Company owned 38,135 bitcoin miners and 731 Ethereum miners as of
  
  June 30, 2022
  
  , with an estimated maximum total hash rate of 2.7 EH/s and 0.3 TH/s, respectively.
• In the second quarter, the Company signed a hash rate swap agreement pursuant to which the Company received miners rated at 0.625 EH/s in exchange for miners at 0.5 EH/s delivered from the Company to the counterparty, a 25% boost in favor of the Company.
• As of
  
  June 30, 2022
  
  , the Company had received the previously announced 10,000-unit miner purchase from Bitmain. The Company currently has no outstanding payment obligations for miner purchases.
• During the second quarter, the Company signed a new 20 MW hosting agreement with Coinmint LLC (“Coinmint”). All of this capacity has been delivered as of the date of this Report. The Coinmint facility utilizes power that is reported to be 90% emissions-free.
• Subsequent to quarter end, the Company announced that it had finalized an agreement for 5 megawatts of incremental hosting capacity to power its miners. The facility is located in
  
  Canada
  
  and utilizes an energy source that is primarily hydroelectric.
• Approximately 69% of our fleet’s run-rate electricity consumption was generated from carbon-free energy sources as of
  
  June 30, 2022
  
  , 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 sold 903 MicroBT Whatsminer M21S bitcoin miners and 9 MicroBT Whatsminer M20S bitcoin miners during the quarter.

Management Commentary

“In the second quarter of 2022, we managed to modestly increase bitcoin production on a sequential basis despite the previously announced interruptions to certain hosting partners’ operations. Fortunately, our team is well versed when it comes to overcoming logistical hurdles. Our rapid response included signing a new hosting agreement with Coinmint for 20 MW of primarily carbon-free power and executing a hash rate swap agreement with another miner which provided for a 25% boost to our swapped hash rate. These actions helped propel our active hash rate to 1.06 EH/s by early July, which is nearly double where our active hash rate stood prior to the interruptions at the end of April.

Subsequent to quarter end, we also announced a new 5 MW hosting agreement with a provider in

Canada

at a location that is primarily hydro powered. The relatively small size speaks to our strategy of diversifying hosting to minimize site and counterparty risk. Importantly, this agreement not only advances our goal of becoming entirely carbon-free but is also expected to help reduce our weighted average cost of power.

The price of bitcoin decreased substantially during the second quarter, reducing industrywide margins, and forcing difficult decisions across the industry. Fortunately, our balance sheet remains strong, partially insulating us from short-term price movements and enabling us to advance our long-term vision. We ended the quarter with

$45 million

in cash, over

$70 million

in total liquidity, zero debt, and no outstanding miner purchase obligations. This provides us ample flexibility to continue deploying miners and canvas the market for opportunistic purchases at potentially distressed pricing.”

Non-GAAP Financial Measures

We are providing supplemental financial measures for (i) non-GAAP income from operations and (ii) non-GAAP net income. These supplemental financial measures are not measurements of financial performance under US GAAP and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe that these non-GAAP financial measures are also useful to investors and analysts in comparing our performance across reporting periods on a consistent basis.

The following is a reconciliation of non-GAAP income (loss) from operations, which excludes the impact of (i) depreciation of property and equipment, and (ii) share based compensation expenses, to its most directly comparable GAAP measures for the periods indicated:

The following is a reconciliation of non-GAAP net income, which excludes the impact of (i) depreciation of property and equipment, (ii) share based compensation expenses, (iii) impairment of digital assets, (iv) gain from disposal of property and equipment, (v) gain from sale of investment security and (vi) gain from sale of a subsidiary, to its most directly comparable GAAP measures for the periods indicated:

About Bit Digital

Bit Digital, Inc. is a digital assets mining company headquartered in

New York City

. Our mining operations are located in

North America

. For additional information, please contact

[email protected]

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. Additionally, all discussions of financial metrics assume mining difficulty rates as of

August 2022

. 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.

For more information, please contact:

[email protected]

, +1 (212) 463-5121

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SOURCE Bit Digital, Inc.