Bit Digital Q1 crypto mining revenue drops 80% Y/Y, as migrated miners await installation

Jun. 22, 2022 8:52 AM ETBit Digital, Inc. (BTBT)By: Max Gottlich, SA News Editor

Cryptocurrency mining rigs in a data center

luza studios/E+ via Getty Images

Bit Digital's (NASDAQ:BTBT) cryptocurrency mining revenue took a big hit in Q1 vs. Q1 2021, as its migrated miners (from China to North America) are waiting to get installed as part of its redeployment program.

Revenue from crypto mining of $8.6M in Q1 missed the average analyst estimate of $8.9M and dropped from $43.9M in Q1 2021. Bit Digital (BTBT) said it's expecting to keep investing in miners to boost the hash rate capacity of both bitcoin (BTC-USD) miners and ethereum (ETH-USD) miners.

In turn, "we expect an increase in revenue during fiscal year 2022, subject to the price of bitcoin and ETH, network difficulty and other factors," it said. The company also sees an increase in the cost of revenues as it continues to focus on expansion as well as an upgrade to its miner fleet.

However, if Bit Digital (BTBT) cannot come up with "sufficient revenue from our bitcoin (BTC-USD) production when needed or secure additional sources of funding, it may become necessary to significantly reduce our current rate of expansion."

Operating expenses of $12.3M improved from $18.3M in Q1 of last year.

Overall, the company incurred a loss from operations of $3.8M at March 31, compared with a gain of $25.6M at March 31, 2021.

Bitcoin's (BTC-USD) deep slump since late 2021 has "coincided with an increase in network hash, reducing industrywide margins and heightening competition," the crypto miner said. "We have already paid all of our miner purchase obligations and have no other significant capital commitments as of the date of this report."

Earlier, Bit Digital earned 194.48 bitcoins and 189.26 ETH during Q1.

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