Investing.com
Published Aug 30, 2022 04:31PM ET
Updated Aug 30, 2022 04:43PM ET
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
* 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
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:
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Reconciliation of non-GAAP (loss) income from operations: | ||||||||||||||||
(Loss) Income from Operations | $ | (6,689,503) | $ | 10,774,404 | $ | (10,456,331) | $ | 36,384,182 | ||||||||
Depreciation and amortization expenses | 5,322,120 | 2,348,657 | 9,121,749 | 5,999,031 | ||||||||||||
Share based compensation expenses | 593,413 | - | 1,057,313 | 453,472 | ||||||||||||
Non-GAAP (Loss) Income from Operations | $ | (773,970) | $ | 13,123,061 | $ | (277,269) | $ | 42,836,685 |
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:
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Reconciliation of non-GAAP net income: | ||||||||||||||||
Net (loss) income | $ | (18,124,732) | $ | (1,339,400) | $ | (28,304,521) | $ | 34,446,924 | ||||||||
Depreciation and amortization expenses | 5,322,120 | 2,348,657 | 9,121,749 | 5,999,031 | ||||||||||||
Share based compensation expenses | 593,413 | - | 1,057,313 | 453,472 | ||||||||||||
Impairment of digital assets | 13,639,386 | 9,045,007 | 23,684,989 | 9,045,007 | ||||||||||||
Gain from disposal of property and equipment | (1,280,328) | (43,436) | (1,454,896) | (43,436) | ||||||||||||
Gain from sale of investment security | - | - | (1,039,999) | - | ||||||||||||
Gain from sale of a subsidiary | - | - | (52,383) | - | ||||||||||||
Non-GAAP Net Income | $ | 149,859 | $ | 10,010,828 | $ | 3,012,252 | $ | 49,900,998 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Reconciliation of non-GAAP Basic and Dilutive (Loss) Earnings Per Share: | ||||||||||||||||
Basic and dilutive (loss) earnings per share | $ | (0.00) | $ | (0.03) | $ | (0.38) | $ | 0.70 | ||||||||
Depreciation and amortization expenses | 0.07 | 0.05 | 0.12 | 0.12 | ||||||||||||
Share based compensation expenses | 0.01 | - | 0.01 | 0.01 | ||||||||||||
Impairment of digital assets | 0.17 | 0.18 | 0.32 | 0.18 | ||||||||||||
Gain from disposal of property andequipment | (0.02) | - | (0.02) | - | ||||||||||||
Gain from sale of investment security | - | - | (0.01) | - | ||||||||||||
Gain from sale of a subsidiary | - | - | (0.00) | - | ||||||||||||
Non-GAAP basic and dilutive earnings per share | $ | 0.00 | $ | 0.20 | $ | 0.04 | $ | 1.01 |
Written By: Investing.com
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