NEW YORK, Oct. 19, 2020 /PRNewswire/ -- Bit Digital,
Inc. (Nasdaq: BTBT) (the "Company"), an emerging bitcoin mining
company headquartered in New York,
U.S. today announced its unaudited financial results for the six
months ended June 30, 2020.
The above table presents
the number of bitcoins received from the mining pool operator on a
monthly basis:
"We commenced our bitcoin mining business in February 2020. By now, our hash rate capacity
reached 1,250 Peta-hash per second ("Ph/s"), and the management has
determined that the Company, in terms of the operating hash rate
capacity, is the first among NASDAQ listed companies in bitcoin
mining industry." said Mr. Hong Yu,
the Chief Strategy Officer of the Company. "We are and we will make
continuous investments in improving our hash rate capacity to keep
our competitiveness in the industry."
"The bitcoin mining business is a challenge and an opportunity
to the Company. We performed comprehensive evaluation, planning and
design on the new business before we got started." said Mr. Erke
Huang, the Chief Financial Officer of the Company. "For the first
half 2020, we had revenue of $0.69
million from our bitcoin mining business with hash rate
capacity of 310 Ph/s. With the deployment of additional miners, we
expect to make a dramatic increase in revenues in the second half
2020 with our continuous investments in miners and hash rate."
Financial Highlights for the First Half 2020
- Revenue from bitcoin mining business was $0.69 million.
- The number of bitcoins earned from bitcoin mining business was
74.72.
- The number of miners was 6,004 MicroBT M21S, of which 3,429 and
2,575 miners were acquired in May and June
2020, respectively.
- The net loss from continuing operations of $0.37 million was all from bitcoin mining
business, compared to $nil for the first half 2019.
- The net loss from discontinued operations was $3.73 million for the first half 2020, as we
provided full impairment on assets for our discontinued
peer-to-peer and car rental business in the PRC, compared with the
net loss from discontinued operations of $6.46 million for the first half 2019.
- The net loss was $4.10 million
and the loss per share was $0.24 for
the first half 2020, compared with $6.46
million and $0.43 for the same
period last year.
Business developments
On April 8, 2020, we acquired the
XMAX Chain Limited, a wholly owned subsidiary based in Hong Kong. In the third quarter 2020, we
launched additional 16,765 units of miners in Xinjiang, Inner
Mongolia and Sichuan Provinces, all in the PRC.
On September 1, 2020, we
established Bit Digital USA, Inc.
("BT USA"), a wholly owned
subsidiary incorporated in Delaware, United
States, through which we intend to operate bitcoin mining
business with our miners in the United
States. In September, we commenced trial operation with 100
units of miners under operation in Texas, United
States.
On September 17, 2020, BT
USA entered into a certain
agreement with Compute North LLC headquartered in Nebraska U.S.
Pursuant to the service agreement, Compute North would provide
bitcoin mining facilities for the colocation and managing of mining
equipment of the Company's bitcoin business which are expected to
save the Company operating utilities and rent cost. Going forward,
we expect more miners operating in the Unites States.
As of the date of this report, we had a total of 22,869 miners
under operations. As of September 30,
2020, our hash rate reached 1,250 Ph/s. At full deployment
of our 22,869 miners, our hash rate capacity reached 1,250 Ph/s,
with the aggregate mining efficiency of 61.88 joules per terahash
(J/TH), consuming 76 MW of power. By the report date, we have
earned an aggregation of 949.51 bitcoins and recognized
unaudited revenues of approximately $10.08 million.
As of September 30, 2020, and June 30, 2020, we had 60 and 16 bitcoins on hand.
The following table presents our bitcoin mining activities in coins
as of September 30, 2020 and
June 30, 2020.
|
|
Number of
bitcoins
|
|
Amounts
|
Balance at January
1, 2020
|
|
|
-
|
|
$
|
-
|
Receipt of
cryptocurrencies from mining services
|
|
|
75
|
|
|
692,698
|
Sales of
cryptocurrencies
|
|
|
(58)
|
|
|
(544,210)
|
Realized gain on sale
of cryptocurrencies
|
|
|
-
|
|
|
(4,990)
|
Balance at June
30, 2020
|
|
|
16
|
|
$
|
153,478
|
Receipt of
cryptocurrencies from mining services
|
|
|
740
|
|
|
|
Sales of
cryptocurrencies
|
|
|
(696)
|
|
|
|
Balance at
September 30, 2020
|
|
|
60
|
|
|
|
Other recent developments
On July 6, 2020, the Company
completed the sale of 21,500,000 share of common stock at
$0.80 per share for gross proceeds of
$17,200,000. The proceeds were used
mainly to purchase miners. For the period from July 1, 2020 to the date of this report, we
launched an additional 16,865 units of miners, including 800 units
Innosilicon T3 miners, 256 Bitmain T17+ miners, 2,200 MicroBT M10
Miners, 2,696 MicroBT M20S miners and 10,813 MicroBT M21S miners
for approximately $14.4 million in
July. In September 2020, the Company
launched an additional 100 MicroBT M21S miners purchased for cash
in the United States.
On September 8, 2020, the Board
approved the disposal of Point Cattle Holdings Limited, a former
wholly owned subsidiary of the Company in the British Virgin Islands, and its subsidiaries
and VIEs, through which the Company previously operated its
peer-to-peer lending business and the car rental business in PRC.
Upon the sale, we discontinued our peer-to-peer lending business
and the car rental business in the PRC ("discontinued operations").
In addition to our bitcoin mining business, we plan to operate our
car rental business through Golden Bull USA, Inc., a wholly owned subsidiary based in
the United States once the
Coronavirus pandemic is curtailed.
On the same date, the Company entered into a certain share
purchase agreement (the "Disposition SPA") by and among a BVI
company, Sharp Whale Limited (the "Purchaser"), Point Cattle
Holding Limited (the "Subsidiary") and the Company (the "Seller").
Pursuant to the Disposition SPA, the Purchaser purchased the
Subsidiary in exchange for nominal consideration of $10.00 and other good and valuable
consideration.
On September 14, 2020, the Company
officially changed its name from "Golden Bull Limited" to "Bit
Digital, Inc.", which the management believes more closely reflects
the Company's bitcoin mining business. We had already changed our
Nasdaq trading symbol to "BTBT".
Financial Results for the Six Months Ended June 30, 2020
Because the financial results for the first half 2019 all
resulted from peer-to-peer lending business and the car rental
business in the PRC, which were reported as "net loss from
discontinued operations", and we commenced our bitcoin mining
business in February 2020, our
comparative figures of revenues, cost and expenses were reported as
$nil for the first half 2019.
Revenues
We commenced our bitcoin mining business in February 2020. We generated revenues from
provision of computing power to the digital asset mining pool, and
the consideration was in the form of cryptocurrencies, the value of
which is determined using the market price of the related
cryptocurrency at the time of receipt. Providing computing powers
to successfully add a block to the blockchain, the Company is
entitled to a fractional share of the fixed cryptocurrency from the
mining pool operator, which is based on the proportion of computing
power the Company contributed to the mining pool operator to the
total computing power contributed by all mining pool participants
in solving the current algorithm.
For the first half 2020, we received 74.72 bitcoins from one
mining pool operator by providing computing power in our 6,004
MicroBT M21S miners, and we recognized revenue of $0.69 million. As of June
30, 2020, our hash rate was 310 Peta-hash per second
(Ph/s).
We will continue to invest in the miners to increase the hash
rate capacity, as a percentage of total computing power contributed
by all mining pool participants. Our mining operations are in
Xinjiang, Inner Mongolia and Sichuan Provinces PRC and we launched
new mining operations in Texas,
United States in September 2020.
In the third quarter 2020, we launched an additional 16,865
units of miners, and our hash rate reached 1,250 Ph/s. As a result,
we expect a significant increase in revenue for the second half
2020. Also, with more miners operating in the United States, we expect the energy cost
to decrease on an overall basis.
Cost of revenues
Cost of revenues of $0.66 million
for the first half 2020 was primarily comprised of direct
production cost of the mining operations, including utilities and
other service charges, but excluding depreciation and amortization
expenses which are separately presented. As of June 30, 2020, we had 6,004 miners under
operation in Inner Mongolia, PRC and Sichuan Province, PRC, where provided utility
access aggregating 21 megawatts to our miners.
We expect to have a sharp increase in cost of revenues in the
second half 2020 as we launched an additional 16,865 units of
miners in the third quarter, spreading over Xinjiang, the PRC,
Inner Mongolia, the PRC, Sichuan
Province, the PRC, and Texas, U.S. In addition, we continue to focus
on expansion and upgrade of our miners, and the increase in cost of
revenues is expected to be in line with the increase of our
revenues.
Depreciation and amortization expenses
For the first half 2020, the depreciation and amortization
expenses represented depreciation of 6,004 miners with an estimated
useful life of 3 years.
General and administrative expenses
For the first half 2020, our general and administrative expenses
were primarily comprised of professional and consulting expenses of
$0.30 million.
Realized gain on exchange of cryptocurrencies
We recorded cryptocurrencies are recorded at cost and any gains
or losses from sales of cryptocurrencies are recorded as "Realized
gain/(loss) on exchange of cryptocurrencies" in the consolidated
statements of operations. We recorded gains of $5,968 for the first half 2020 from sales of
58.45 bitcoins.
Net loss from discontinued operations
For the first half 2020, we provided full impairment of
$3.73 million on the assets of our
discontinued operations resulting in a net loss of $3.73 million from discontinued operations,
compared to a net loss of $6.46
million for the first half 2019.
Income tax expenses
Income tax expenses was $nil and
$nil for the first half 2020 and 2019, respectively, as we
incurred net operating losses for the relevant period.
Net loss and loss per share
For the first half 2020, our net loss was comprised of
$0.37 million was derived from our
bitcoin mining business and net loss of $3.73 million from discontinued operations;
compared to a net loss of $6.46
million for the same period of last year, derived from our
disposed peer-to-peer lending business and car rental business in
China.
Loss per share was $0.24 for the
first half 2020, compared to $0.43
for the same period of last year. Weighted average number of shares
was 17,379,405 for the first half of 2020, compared to 14,899,185
for the same period of last year.
Financial Condition and Cash Flow
As of June 30, 2020, the Company
had cash, cash equivalents and restricted cash of $2.51 million, compared to $0.016 million as of December 31, 2019. The increase in cash, cash
equivalents and restricted cash was primarily attributable from
proceeds of $0.55 million from sales
of cryptocurrencies and net proceeds of $12.76 million from share subscription fees from
shareholders under private placement transactions, partially offset
by $11.35 million purchases of
miners.
Net cash used in operating activities was $0.96 million, resulting from bitcoin mining
business, for the first half of 2020, compared to $1.97 million, resulting from our discontinued
peer-to-peer lending business, for the same period of last
year.
Net cash used in investing activities was $10.68 million, resulting from purchases of
miners of $11.24 million and netting
off against proceeds of $0.55 million
from sales of cryptocurrencies, compared to $nil million for the
same period of last year.
Net cash provided by financing activities was $13.54 million, resulting from proceeds of
$12.76 million from share
subscription fees from shareholders under private placement
transactions and borrowings of $0.78
million from related parties, for the first half of 2020,
compared to $nil million for the same period of last year.
About Bit Digital, Inc.
Effective on September 14, 2020
after disposal of its peer-to-peer lending business, the Company
officially changed its Company name from "Golden Bull Limited" to
"Bit Digital, Inc." (NASDAQ: BTBT). The Company is headquartered in
New York, U.S., and commenced
bitcoin mining business in February
2020. More information about the Company can be found at its
investor relations website at http://www.bit-digital.com/.
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, involve 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.
BIT DIGITAL,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
As of June 30,
2020 and December 31, 2019
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,911,226
|
|
$
|
15,988
|
Restricted
cash
|
|
|
600,000
|
|
|
-
|
Cryptocurrencies
|
|
|
153,478
|
|
|
-
|
Other current
assets
|
|
|
12,801
|
|
|
12,501
|
Assets of
discontinued operations
|
|
|
-
|
|
|
531,767
|
Total Current
Assets
|
|
|
2,677,505
|
|
|
560,256
|
Restricted cash,
noncurrent
|
|
|
-
|
|
|
600,000
|
Deposits for
equipment
|
|
|
6,864,320
|
|
|
110,000
|
Property and
equipment, net
|
|
|
4,419,939
|
|
|
-
|
Assets of
discontinued operations, noncurrent
|
|
|
-
|
|
|
3,246,277
|
Total
Assets
|
|
$
|
13,961,764
|
|
$
|
4,516,533
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
97,490
|
|
$
|
-
|
Due to related
parties
|
|
|
908,134
|
|
|
120,000
|
Other payables and
accrued liabilities
|
|
|
210,322
|
|
|
266,048
|
Current liabilities
of discontinued operations
|
|
|
-
|
|
|
43,546
|
Total Current
Liabilities
|
|
|
1,215,946
|
|
|
429,593
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
1,215,946
|
|
|
429,593
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
Common shares, $0.01
par value, 50,000,000 shares authorized, 22,199,185 and
15,399,185 shares issued and outstanding of June 30,
2020 and December 31,
2019, respectively
|
|
|
221,992
|
|
|
153,992
|
Share subscription
receivables
|
|
|
(45,457)
|
|
|
(45,457)
|
Advance of share
subscription fees from shareholders
|
|
|
10,160,718
|
|
|
-
|
Additional paid-in
capital
|
|
|
20,145,220
|
|
|
17,610,220
|
Statutory
reserve
|
|
|
6,189
|
|
|
6,189
|
Accumulated
deficit
|
|
|
(17,894,991)
|
|
|
(13,790,151)
|
Accumulated other
comprehensive loss
|
|
|
(100,186)
|
|
|
(100,186)
|
Total Bit Digital,
Inc.'s Shareholders' Equity
|
|
|
12,493,485
|
|
|
3,834,607
|
Noncontrolling
interests
|
|
|
252,333
|
|
|
252,333
|
Total
Equity
|
|
|
12,745,818
|
|
|
4,086,940
|
Total
Liabilities and Equity
|
|
$
|
13,961,764
|
|
$
|
4,516,533
|
BIT DIGITAL,
INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
For the Six Months
Ended June 30, 2020 and 2019
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
For the Six
Months
Ended
June 30,
|
|
|
2020
|
|
2019
|
Revenue from
cryptocurrency mining
|
|
$
|
692,698
|
|
$
|
-
|
|
|
|
|
|
|
|
Cost and operating
expenses
|
|
|
|
|
|
|
Cost of revenues
(exclusive of depreciation and amortization shown
below)
|
|
|
(656,014)
|
|
|
-
|
Depreciation and
amortization expenses
|
|
|
(70,501)
|
|
|
-
|
General and
administrative expenses
|
|
|
(340,569)
|
|
|
-
|
Total operating
expenses
|
|
|
(1,067,084)
|
|
|
-
|
Loss from
Operations
|
|
|
(374,386)
|
|
|
-
|
Realized gain on
exchange of cryptocurrencies
|
|
|
5,968
|
|
|
-
|
Interest
income
|
|
|
40
|
|
|
-
|
Other
expenses
|
|
|
(1,964)
|
|
|
-
|
Net loss from
continuing operations before income taxes
|
|
|
(370,342)
|
|
|
-
|
Income tax
expenses
|
|
|
-
|
|
|
-
|
Net loss from
continuing operations
|
|
|
(370,342)
|
|
|
-
|
|
|
|
|
|
|
|
Net loss from
discontinued operations
|
|
|
(3,734,498)
|
|
|
(6,462,425)
|
|
|
|
|
|
|
|
Net
loss
|
|
|
(4,104,840)
|
|
|
(6,462,425)
|
Net loss attributable
to noncontrolling interests
|
|
|
-
|
|
|
-
|
Net loss
attributable to Bit Digital, Inc.'s shareholders
|
|
$
|
(4,104,840)
|
|
$
|
(6,462,425)
|
Other
comprehensive income
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
-
|
|
|
34,128
|
Comprehensive
loss
|
|
|
(4,104,840)
|
|
|
(6,428,297)
|
Total comprehensive
loss attributable to noncontrolling interests
|
|
|
-
|
|
|
-
|
Total
comprehensive loss attributable to BT Digital Inc.'s
shareholders
|
|
$
|
(4,104,840)
|
|
$
|
(6,428,297)
|
Weighted average
number of ordinary share outstanding
|
|
|
|
|
|
|
Basic
and Diluted
|
|
|
17,379,405
|
|
|
14,899,185
|
Loss per
share
|
|
|
|
|
|
|
Basic
and Diluted
|
|
$
|
(0.24)
|
|
$
|
(0.43)
|
BIT DIGITAL,
INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months
Ended June 30, 2020 and 2019
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
|
For the Six
Months
Ended
June 30,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Net loss
|
|
$
|
(4,104,840)
|
|
$
|
(6,462,425)
|
Less: Net loss from
discontinued operations
|
|
|
3,734,498
|
|
|
6,462,425
|
Net loss from
continuing operations
|
|
|
(370,342)
|
|
|
-
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation of property and equipment
|
|
|
70,501
|
|
|
-
|
Loss
from acquisition of a subsidiary
|
|
|
1,964
|
|
|
-
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Cryptocurrencies
|
|
|
(705,118)
|
|
|
-
|
Other
current assets
|
|
|
(300)
|
|
|
-
|
Accounts
payable
|
|
|
97,490
|
|
|
-
|
Other payables and
accrued liabilities
|
|
|
(57,014)
|
|
|
-
|
Net Cash Used in
Operating Activities from Continuing Operations
|
|
|
(962,819)
|
|
|
-
|
Net Cash Used in
Operating Activities from Discontinued Operations
|
|
|
-
|
|
|
(1,969,400)
|
Net Cash Used in
Operating Activities
|
|
|
(962,819)
|
|
|
(1,969,400)
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(11,244,761)
|
|
|
-
|
Proceeds from sales
of cryptocurrencies
|
|
|
551,640
|
|
|
-
|
Acquisition of cash
in connection with acquisition of a subsidiary
|
|
|
11,326
|
|
|
-
|
Net Cash Used in
Investing Activities
|
|
|
(10,681,795)
|
|
|
-
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Proceeds from
borrowings from related parties
|
|
|
776,134
|
|
|
-
|
Proceeds from
issuance of common stock under private placement
transaction
|
|
|
2,600,000
|
|
|
-
|
Advances of share
subscription fees from shareholders under private placement
transaction
|
|
|
10,163,718
|
|
|
-
|
Net Cash Provided
by Financing Activities
|
|
|
13,539,852
|
|
|
-
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
-
|
|
|
34,128
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
|
1,895,238
|
|
|
(1,935,272)
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
615,988
|
|
|
2,934,425
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
2,511,226
|
|
$
|
999,153
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
-
|
|
$
|
-
|
Cash paid for income
tax
|
|
$
|
-
|
|
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multimedia:http://www.prnewswire.com/news-releases/bit-digital-inc-announces-the-first-half-of-fiscal-year-2020-financial-results-301154623.html
SOURCE Bit Digital, Inc.