Bit Digital reports growing losses as it moves crypto miners from China to North America

Bit Digital reports growing losses as it moves crypto miners from China to North America

Business
August 23, 2021 by J.D. Smith
102
Bit Digital, a New York-headquartered Bitcoin mining company that has had significant operations in China, recorded growing losses in the second quarter of this year as it continued relocating its China-based machines to North America. Fast facts In the second quarter of this year, Nasdaq-listed Bit Digital booked a net loss of US$1.34 million, compared
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Bit Digital, a New York-headquartered Bitcoin mining company that has had significant operations in China, recorded growing losses in the second quarter of this year as it continued relocating its China-based machines to North America.

Fast facts

  • In the second quarter of this year, Nasdaq-listed Bit Digital booked a net loss of US$1.34 million, compared to a net loss of $250,281 for the same period of last year, the company’s latest quarterly results showed.
  • During April through June 2021, Bit Digital shipped 14,500 miners to the United States, and it expects to complete the migration of either all or the majority of its remaining China-based miners to North America in the third quarter of 2021, “although we anticipate the possibility that certain miner shipments may arrive in the U.S. early in the fourth quarter of 2021,” the company said in the Q2 report.
  • The company reported 14,500 miners in transition, 9,484 miners in China, 7,090 machines in the U.S. and 1,426 in Canada as of the end of June.
  • The company had earned an aggregate of 3,086.53 BTC from the inception of its mining business in February 2020 to June 30, 2021. In the second quarter of this year, it produced 562.9 BTC.
  • Bit Digital claimed that it started its global migration as early as October 2020. “Following the recent announcement of the Chinese government’s decision to ban Bitcoin mining, we immediately suspended our remaining mining operations in mainland China, effective June 21, 2021,” the company said in the quarterly report, adding that it generally refurbishes its miners in a facility in Shenzhen to ensure their resilience during transport and operability upon arrival.
  • As China intensifies its crackdowns on crypto mining, many miners have shut down their facilities in China and are leaving for other places that appear to be more regulations-friendly and offer relatively cheap electricity. Some early favorite destinations for displaced Chinese miners have included Kazakhstan, North America and Northern Europe.

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