Bit Digital, Inc. Proclaims Bitcoin Manufacturing and Mining Operations Replace for the Third Quarter of 2021 | Information

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NEW YORK, Nov. 17, 2021 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Firm”), a bitcoin mining firm headquartered in New York, introduced its unaudited bitcoin manufacturing and mining operations replace for the third quarter ended September 30, 2021.

Preliminary Third Quarter 2021 Highlights

  • We accomplished our fleet’s exit from China. As of the date of this press launch, 100% of our fleet had arrived in North America. As of September 30, 2021, we had no miners remaining in China: 79.1% of our miner fleet was already deployed or awaiting set up in North America, and 20.9% was in transit.
  • The Firm owned 27,744 miners as of September 30, 2021, with an estimated most whole hash charge of 1.603 Exahash (“EH/s”). The 0.318 EH/s discount within the third quarter was on account of fleet repositioning, by which the Firm bought or disposed of sure fashions (partially offset by purchases) in anticipation of buy alternatives. The Firm acknowledged a $0.375 million achieve on miner gross sales, and the web sale proceeds had been reinvested into miner purchases as of the date of this press launch.
  • The Firm bought 851 miners on the spot market throughout the quarter.
  • Subsequent to September 30, 2021, the Firm signed an settlement with Bitmain Applied sciences Restricted (“Bitmain”) to buy 10,000 Bitcoin miners. The beforehand introduced purchases are anticipated to extend Bit Digital’s most hash charge by roughly 1.0 EH/s. Professional forma for the introduced purchases, our most whole hash charge is predicted to be roughly 2.603 EH/s.
  • The Firm earned 248.36 bitcoins. The discount from the second quarter was as a result of migration program, by which the next proportion of fleet capability was offline whereas in transit to, or awaiting set up in, North America, in addition to miner gross sales and disposals.
  • Treasury holdings of BTC and WBTC had been 526.1 and 101.0, respectively, for a complete of 627.1 BTC equal, with a good market worth of roughly $27.5 million as of September 30, 2021.
  • The Firm raised $80 million of gross proceeds in a personal placement with institutional traders.
  • The Firm introduced that Brock Pierce, Chairman of the Bitcoin Basis, joined its Board of Administrators efficient October 31, 2021.
Miner Migration Accomplished

On account of the State Council concentrating on digital foreign money mining in China, we terminated all mining operations in China on June 21, 2021. Accordingly, we additional accelerated our migration technique to North America, that had been ongoing since October 2020, and accomplished our fleet’s exit from China throughout the third quarter. As of September 30, 2021, we had no miners in China: 79.1% of our fleet was already deployed or awaiting set up in North America, and 20.9% was in transit. As of the date of this press launch, 100% of our fleet had arrived in North America.

Energy and Internet hosting Replace

In the course of the third quarter, the Firm signed two new internet hosting agreements in america, representing 135 megawatts (“MW”) of further energy capability. Each are anticipated to be powered by a considerable part of renewable and/or carbon-free power, contributing to our ongoing efforts to decarbonize our mining operations.

On July 22, we signed a 100 MW settlement with Digihost Applied sciences (“Digihost”) that’s anticipated to be powered by roughly half renewable and/or carbon free power sources, topic to finalizing our power procurement technique with Digihost. This second settlement brings our whole contracted internet hosting capability with Digihost to 120 MW. Digihost is predicted to ship the primary 20 MW of contracted energy capability throughout This autumn 2021. The remaining 100 MW is scheduled for supply throughout the first and second quarters of 2022.

On August 25, we signed a 35 MW internet hosting settlement with Blockfusion USA (“Blockfusion”) that’s anticipated to be powered primarily from zero carbon emission power sources. As of the date of this press launch, Blockfusion had accomplished the primary (of 4) phases of miner deployments, representing roughly 5 MW of energy consumption. The remaining three phases are scheduled for supply in This autumn 2021 and Q1 2022. In the course of the time period of our settlement and for twelve (12) months thereafter, Bit Digital has a proper of first refusal to match any bona fide provide from a 3rd social gathering to finance or purchase securities and/or belongings of Blockfusion, and to obtain a credit score or refund of sure bills incurred within the growth of infrastructure.

On account of these two new agreements, as of September 30, 2021, the Firm had secured internet hosting capability adequate to finish the redeployment of its fleet in North America, with additional signed capability to facilitate future fleet development. The Firm continues to guage further internet hosting preparations with present and potential new internet hosting companions.

Our internet hosting accomplice Compute North LLC (“Compute North”) has suggested us that its supply of 40 MW of internet hosting capability that was contracted for throughout Q2 and anticipated for supply in Q3 2021 has been delayed. Compute North has not but decided up to date supply timing for this extra capability. Pending revised supply timing, Bit Digital expects to redirect miner deployments to different internet hosting companions.

Our internet hosting accomplice Hyperlink International Applied sciences (“Hyperlink”) has suggested us that Hyperlink’s facility in Alberta, Canada that had equipped roughly 3.3 MW for internet hosting our miners was required to discontinue operations because of a allowing dispute. Hyperlink is at the moment evaluating different websites to accommodate our miners. Within the interim, pending additional updates, Bit Digital expects to redirect miners previously hosted with Hyperlink to different internet hosting companions.

The next desk summarizes our signed internet hosting agreements as of September 30, 2021, and anticipated supply timing primarily based on communications with our internet hosting companions:

Internet hosting Accomplice

Date

Signed

Location

(State)

Anticipated

Energy

Capability

(MW)

% of

Whole

Anticipated

Supply

Timing

Compute North

9/9/2020

Texas

0.3

0.1%

Delivered

Hyperlink International

Applied sciences

1/31/2021

TBD

(previously Alberta)

3.3

1.5%

TBD

Compute North

12/30/2020

Nebraska

6.5

3.0%

Delivered

Compute North

1/21/2021

Nebraska

9.2

4.3%

Delivered

Different

2/22/2021

Georgia

0.3

0.2%

Delivered

Compute North

3/12/2021

TBD

40.0

18.6%

TBD

Digihost

Applied sciences

6/10/2021

New York

20.0

9.3%

This autumn 2021

Digihost

Applied sciences

7/22/2021

New York

100.0

46.6%

Q1 to Q2 2022

Blockfusion USA

8/25/2021

New York

35.0

16.3%

This autumn 2021 to Q1

2022 (1)

Whole

214.6

100.0%

(1) Roughly 5 MW has already been delivered as of the date of this press launch.

The next desk summarizes our anticipated internet hosting deliveries, by quarter:

Anticipated Supply Timing

Anticipated Energy Capability (MW)

Delivered as of September 30, 2021

21.3

This autumn 2021

30.0

Q1 2022

80.0

Q2 2022

40.0

To be decided

43.3

Whole

214.6

Professional forma for internet hosting agreements signed so far, we count on to take pleasure in a aggressiveestimated base energy and internet hosting charge of roughly 3.6 cents per kilowatt-hour, on an annualized weighted common foundation.The foregoing base energy charge due to this fact is an estimate and depends on sure assumptions, together with however not restricted to estimated future power procurementpricing, and excludes the impact of revenue sharing preparations. We obtain what we consider are enticing internet hosting charges, partly, by providing revenue shares to a lot of our internet hosting companions. We consider that revenue sharing helps align pursuits with our hosts, and contributes to sturdy efficiency and uptime for our hosted miners.

Bitcoin Manufacturing Replace

Within the third quarter of 2021, Bit Digital earned 248.4 newly minted bitcoins, a discount from 588.4 earned within the second quarter. The discount was as a result of aforementioned miner migration, in addition to fleet repositioning by which the Firm bought or disposed of sure miners. Bitcoin manufacturing is predicted to extend following completion of the redeployment of miners migrated from China, which is predicted throughout the first quarter of 2022, and upon completion of introduced miner purchases.

The Firm’s quarterly bitcoin manufacturing since graduation of our mining operations was as follows:

Miner Fleet Replace

As of September 30, 2021, the Firm owned 27,744 miners, with an estimated whole most hash charge of 1.603 EH/s, a lower from 32,500 miners and 1.915 EH/s as of June 30, 2021. The discount was on account of gross sales and disposals of sure miners, partially offset by miner purchases, as additional mentioned beneath. The Firm’s fleet of owned miners comprised the next fashions:

Mannequin

Owned as of

September 30, 2021

MicroBT Whatsminer M21S

16,296

MicroBT Whatsminer M20S

3,690

Bitmain Antminer S17

3,641

MicroBT Whatsminer M10

1,938

Bitmain Antminer T3

769

Bitmain Antminer S19 Professional

605

Bitmain Antminer S17+

500

MicroBT Whatsminer M30S

261

Bitmain Antminer T17+

44

Whole

27,744

Miner Purchases, Gross sales and Disposals

In the course of the third quarter, we bought 851 miners on the spot market, together with 400 Bitmain S19Pro and 451 Bitmain S17 fashions. As of September 30, 2021, the entire newly bought miners had already been deployed in North America.

Subsequent to September 30, 2021, we signed an settlement with Bitmain to buy 10,000 Bitcoin miners. The full most buy worth is estimated at US $65,000,000 (topic to sure potential reductions), of which the preliminary installments have been made, with the ultimate installment due ten (10) days prior to every cargo by June 2022. The introduced purchases are anticipated to extend Bit Digital’s miner fleet hash charge by roughly 1.0 EH/s. Professional forma for introduced purchases, our most whole hash charge is predicted to be roughly 2.603 EH/s.

The Firm anticipates an ongoing alternative to buy further miners, eachon the spot market and from producerswithin the coming months, topic to market situations and capital availability, and continues to watch market situations for such buy alternatives.

In the course of the quarter, we continued repositioning our fleet by promoting 4,200 miners that had been deemed to have a decrease anticipated return on invested capital than miners we consider we will buy, and/or had been deemed unsuitable for long-distance migration to North America. The bought miners included 4,000 Bitmain S17 and 200 Bitmain T17 fashions. The Firm recorded a achieve of $0.375 million on these gross sales, in mixture. The web sale proceeds had been reinvested into miner purchases and/or buy orders as of the date of this press launch.

In the course of the quarter, we deserted 1,407 miners that had been deemed to have reached the top of their helpful lives, had been not operational and/or would have been uneconomical or unimaginable to restore or migrate. The disposed miners included 611 Bitmain S17+, 301 MicroBT M21S, 252 MicroBT M10, 212 Bitmain T17+ and 31 Bitmain T3 fashions.

Personal Placement Transaction with Institutional Buyers

On October 5, 2021, the Firm closed its beforehand introduced non-public placement with institutional traders for the sale of 13,490,728 abnormal shares. The Firm additionally issued to the traders unregistered warrants to buy as much as an mixture of 10,118,046 abnormal shares. The gross proceeds from the non-public placement had been roughly $80 million earlier than deducting placement agent charges and different estimated providing bills.

Appointment of Director

On September 28, 2021, the Firm introduced the appointment of Brock Pierce, Chairman of the Bitcoin Basis, to its board of administrators. Such appointment turned efficienton October 31, 2021.

Administration Commentary

“Bit Digital marks a serious milestone for our Firm. Our mining belongings at the moment are fully out of China and 100% in North America,” mentioned Bryan Bullett, Bit Digital’s CEO. “It is uncommon {that a} enterprise is confronted with migrating the vast majority of its working belongings throughout the globe on an expedited timeline. Due to our proficient workforce, companions, and head begin, having begun migrating in October 2020, we achieved a serious logistical feat.I would wish to thank the complete Bit Digital workforce for distinctive efficiency in executing in opposition to these unprecedented circumstances.”

“It is also uncommon {that a} main economic system exits a whole vertical, as China did earlier this yr, by banning bitcoin mining. Regardless of the preliminary operational complexity – a problem our workforce squarely met – we consider the shift in international hash distribution will end in a stronger bitcoin community, with the vast majority of hash now situated right here in North America.”

“By closing our latest $80 million fairness placement, we illustrated our entry to development capital, and welcomed new institutional shareholders. We thank these establishments for trusting us with their funding.”

“We dedicated the vast majority of the position’s internet proceeds inside roughly one week, securing 10,000 new Bitmain models on what we consider are enticing phrases. And whereas the accelerated migration prompted us to modestly cull our legacy fleet, we count on this to end in improved profitability, as our buy exerciseconsiderably exceeded the short-term discount in fleet dimension because the begin of Q3. Professional forma for introduced purchases, we count on to have roughly 2.6 EH/s of mining energy.”

“Lastly, we welcomed to our Board of Administrators Brock Pierce, a legendary crypto pioneer who wants no introduction. We consider that along with his newly elevated place within the Firm, Brock’s huge business information, relationships, and steering can be invaluable going ahead.”

About Bit Digital

Bit Digital, Inc. is a bitcoin mining firm headquartered in New York Metropolis. Our mining operations are situated in North America. For extra info, please contact Sam Tabar at sam@bit-digital.comor go to our www.bit-digital.com.

Investor Discover

Investing in our securities entails a excessive diploma of danger. Earlier than investing choice, you need to fastidiously think about the dangers, uncertainties and forward-looking statements described underneath “Threat Components” in Merchandise 3.D of our most up-to-date Annual Report on Kind 20-F for the fiscal yr ended December 31, 2020. If any materials danger was to happen, our enterprise, monetary situation or outcomes of operations would probably undergo. In that occasion, the worth of our securities may decline and you possibly can lose half or your entire funding. The dangers and uncertainties we describe aren’t the one ones dealing with us. Further dangers not presently recognized to us or that we at the moment deem immaterial may additionally impair our enterprise operations. As well as, our previous monetary efficiency will not be a dependable indicator of future efficiency, and historic traits shouldn’t be used to anticipate outcomes sooner or later. Future modifications within the network-wide mining issue charge or Bitcoin hash charge may additionally materially have an effect on the longer term efficiency of Bit Digital’s manufacturing of bitcoin. Moreover, all discussions of monetary metrics assume mining issue charges as of September 2021. See “Protected Harbor Assertion” beneath.

Protected Harbor Assertion

This press launch could include sure “forward-looking statements” referring to the enterprise of Bit Digital, Inc., and its subsidiary firms. All statements, apart from statements of historic truth included herein are “forward-looking statements.” These forward-looking statements are sometimes recognized by way of forward-looking terminology corresponding to “believes,” “expects,” or comparable expressions, involving recognized and unknown dangers and uncertainties. Though the corporate believes that the expectations mirrored in these forward-looking statements are cheap, they do contain assumptions, dangers and uncertainties, and these expectations could show to be incorrect. Buyers shouldn’t place undue reliance on these forward-looking statements, which converse solely as of the date of this press launch. The corporate’s precise outcomes may differ materially from these anticipated in these forward-looking statements because of quite a lot of components, together with these mentioned within the firm’s periodic studies which might be filed with the Securities and Alternate Fee and obtainable on its web site at http://www.sec.gov. All forward-looking statements attributable to the corporate or individuals appearing on its behalf are expressly certified of their entirety by these components. Aside from as required underneath the securities legal guidelines, the corporate doesn’t assume an obligation to replace these forward-looking statements.

Notice: Precise working hash charge will range relying on community issue charge, whole hash charge of the community, the operations of our services and the standing of our miners.

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