AKRON,
Ohio, April 14, 2023 /PRNewswire/ -- BIT Mining
Limited (NYSE: BTCM) ("BIT Mining" or the "Company"), a leading
technology-driven cryptocurrency mining company, today
announced that on April 10, 2023 the
Audit Committee (the "Audit Committee") of the Board of Directors
of the Company, after consulting with management and the Company's
independent registered accounting firm, MaloneBailey, LLP (the
"Auditors"), determined that the Company's accounting policy for
cryptocurrency assets was not in compliance with
applicable guidance under Financial Accounting Standards Board
("FASB") Accounting Standards Codification ("ASC") 350 – Intangible
Assets Goodwill and Other ("ASC 350"), and concluded that such
accounting policy represents an error that was not material to the
Company's previously issued financial statements, as further
described below. The Company intends to correct the error, and
relevant revisions will be reflected in the Company's forthcoming
Annual Report on Form 20-F for the year ended December 31, 2022 (the "2022 Annual Report"), as
further described below.
During the preparation of the 2022 Annual Report, the Company
identified and corrected an immaterial error related to the
impairment calculation of cryptocurrency assets. The
Company has been historically calculating the impairment of
cryptocurrency assets on a daily basis using a spot
price at a standard cutoff time. The Company determined such a
method was not in compliance with ASC 350-30-35-19 which requires
the recognition of impairment when carrying value exceeds fair
value. The Company further determined that the intraday lowest
quoted price should be utilized in calculating impairment of the
Company's cryptocurrency assets.
In accordance with Staff Accounting Bulletin ("SAB") 99,
Materiality, and SAB 108, Considering the Effects of
Prior Year Misstatements when Quantifying Misstatements in Current
Year Financial Statements, the Company evaluated the
materiality of the error from qualitative and quantitative
perspectives, and concluded that the error was immaterial to the
Consolidated Balance Sheet as of December
31, 2021 and Consolidated Statement of Comprehensive Loss,
Changes in Shareholders' Equity and Cash Flows for the year ended
December 31, 2021 (the "2021
Financial Statements"). Tables presenting the impact of this error
on the Company's 2021 Financial Statements, as well as certain
revised accounting policies, will be included in the Company's 2022
Annual Report.
Management and the Audit Committee have discussed these matters
with the Auditors.
About BIT Mining Limited
BIT Mining (NYSE: BTCM) is a leading technology-driven
cryptocurrency mining company, with a long-term
strategy to create value across the cryptocurrency
industry. Its business covers cryptocurrency mining,
mining pool, data center operation and mining machine
manufacturing. The Company owns the world's top blockchain browser
BTC.com and the comprehensive mining pool business operated under
BTC.com, providing multi-currency mining services including BTC,
ETC and LTC. The Company also owns a 7-nanometer
cryptocurrency mining machine manufacturer, Bee
Computing, enabling the Company's self-efficiency through vertical
integration with its supply chain.
Safe Harbor Statements
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will", "expects", "anticipates",
"future", "intends", "plans", "believes", "estimates", "target",
"going forward", "outlook" and similar statements. Such statements
are based upon management's current expectations and current market
and operating conditions and relate to events that involve known or
unknown risks, uncertainties and other factors, all of which are
difficult to predict and many of which are beyond the Company's
control, which may cause the Company's actual results, performance
or achievements to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under law.
For more information:
BIT Mining Limited
ir@btcm.group
ir.btcm.group
www.btcm.group
Piacente Financial Communications
Brandi Piacente
Tel: +1 (212) 481-2050
Email: BITMining@thepiacentegroup.com
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SOURCE BIT Mining Limited