Bit Digital, Inc. Announces Bitcoin Production and Mining Operations Update for the Third Quarter of 2021

• 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 complete hash charge of 1.603 Exahash (“EH/s”). The 0.318 EH/s discount within the third quarter was attributable to fleet repositioning, through 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 acquire on miner gross sales, and the online 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 through 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 complete hash charge is predicted to be roughly 2.603 EH/s.
• The Firm earned 248.36 bitcoins. The discount from the second quarter was because of the migration program, through which the next share 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 have 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 buyers.
• The Firm introduced that Brock Pierce, Chairman of the Bitcoin Basis, joined its Board of Administrators efficient October 31, 2021.

Miner Migration Accomplished

Because of the State Council focusing on digital forex 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 through 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 complete contracted internet hosting capability with Digihost to 120 MW. Digihost is predicted to ship the primary 20 MW of contracted energy capability throughout This fall 2021. The remaining 100 MW is scheduled for supply through 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 fall 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.

Because of these two new agreements, as of September 30, 2021, the Firm had secured internet hosting capability enough to finish the redeployment of its fleet in North America, with additional signed capability to facilitate future fleet progress. The Firm continues to judge further internet hosting preparations with current and potential new internet hosting companions.

Our internet hosting companion 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 companion Hyperlink World Applied sciences (“Hyperlink”) has suggested us that Hyperlink’s facility in Alberta, Canada that had provided 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:

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

Professional forma for internet hosting agreements signed to this point, we anticipate to get pleasure from a aggressive estimated 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 procurement pricing, and excludes the impact of revenue sharing preparations. We obtain what we consider are enticing internet hosting charges, partially, 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.

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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 because of the aforementioned miner migration, in addition to fleet repositioning through 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 through 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 complete 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 attributable to gross sales and disposals of sure miners, partially offset by miner purchases, as additional mentioned under. The Firm’s fleet of owned miners comprised the next fashions:

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 overall 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 complete hash charge is predicted to be roughly 2.603 EH/s.

The Firm anticipates an ongoing alternative to buy further miners, each on the spot market and from producers within the coming months, topic to market situations and capital availability, and continues to observe market situations for such buy alternatives.

In the course of the quarter, we continued repositioning our fleet by promoting 4,200 miners that have been deemed to have a decrease anticipated return on invested capital than miners we consider we will buy, and/or have 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 acquire of $0.375 million on these gross sales, in combination. The online 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 have been deemed to have reached the top of their helpful lives, have 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.

Non-public Placement Transaction with Institutional Buyers

On October 5, 2021, the Firm closed its beforehand introduced personal placement with institutional buyers for the sale of 13,490,728 bizarre shares. The Firm additionally issued to the buyers unregistered warrants to buy as much as an combination of 10,118,046 bizarre shares. The gross proceeds from the personal placement have 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 grew to become efficient on October 31, 2021.

Administration Commentary

“Bit Digital marks a serious milestone for our Firm. Our mining belongings are actually 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 gifted staff, companions, and head begin, having begun migrating in October 2020, we achieved a serious logistical feat. I might prefer to thank all the Bit Digital staff for distinctive efficiency in executing towards these unprecedented circumstances.”

“It is also uncommon {that a} main economic system exits a whole vertical, as China did earlier this 12 months, by banning bitcoin mining. Regardless of the preliminary operational complexity – a problem our staff squarely met – we consider the shift in world hash distribution will lead to a stronger bitcoin community, with the vast majority of hash now situated right here in North America.”

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

“We dedicated the vast majority of the location’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 anticipate this to lead to improved profitability, as our buy exercise considerably exceeded the short-term discount in fleet dimension because the begin of Q3. Professional forma for introduced purchases, we anticipate 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 together with his newly elevated place within the Firm, Brock’s huge trade data, relationships, and steering might 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 added info, please contact Sam Tabar at [email protected] or go to our  www.bit-digital.com.

Investor Discover

Investing in our securities entails a excessive diploma of danger. Earlier than investing determination, you need to rigorously contemplate the dangers, uncertainties and forward-looking statements described below “Danger Components” in Merchandise 3.D of our most up-to-date Annual Report on Kind 20-F for the fiscal 12 months ended December 31, 2020. If any materials danger was to happen, our enterprise, monetary situation or outcomes of operations would doubtless undergo. In that occasion, the worth of our securities may decline and you might lose half or your entire funding. The dangers and uncertainties we describe should not the one ones going through us. Extra dangers not presently recognized to us or that we at the moment deem immaterial can also 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 adjustments within the network-wide mining problem charge or Bitcoin hash charge can also materially have an effect on the long run efficiency of Bit Digital’s manufacturing of bitcoin. Moreover, all discussions of economic metrics assume mining problem charges as of September 2021. See “Protected Harbor Assertion” under.

Protected Harbor Assertion

This press launch might comprise sure “forward-looking statements” regarding the enterprise of Bit Digital, Inc., and its subsidiary corporations. All statements, apart from statements of historic truth included herein are “forward-looking statements.” These forward-looking statements are sometimes recognized by means of forward-looking terminology equivalent to “believes,” “expects,” or related 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 might 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 are filed with the Securities and Trade 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 below the securities legal guidelines, the corporate doesn’t assume an obligation to replace these forward-looking statements.

SOURCE Bit Digital, Inc.