Bit Digital, Inc. (BTBT), a bitcoin firm, on Monday reported net loss for the third quarter, despite a surge in revenue.
Commenting on the third-quarter result, the company said: "Our mining business faced anticipated headwinds during the first full quarter post-April halving. Record-low hash prices and seasonal electricity rate increases resulted in compressed mining margins. We intentionally refrained from capital investments to upgrade our fleet to date in 2024, and the impact from legacy miners operating during the third quarter was a drag on our results."
For the three-month period to September 30, the company posted net loss per share of $0.26, wider than loss of $0.08 per share, registered for the same period last year.
Excluding items, EBITDA loss was $21.8 million, compared with loss of $2.9 million a year ago. This includes a $21.9 million unrealized loss on digital assets.
Bit Digital earned 165.4 bitcoins, a 59 percent decrease from the prior year. This was mainly due to a reduction in block rewards following the halving event in April, an increase in network difficulty, and a 104 percent increase in the company's operational hash rate.
Total revenue was $22.7 million, up 96 percent from last year, primarily driven by the commencement of the company's high performance computing or HPC services business.
The company's HPC recognized $12.2 million of revenue, compared with $0 a year ago.
However, revenue from bitcoin mining was $10.1 million, down 11 percent from the previous year.
Looking ahead, the firm continues to expect to reach its $100 million run-rate revenue target for HPC business by the end of 2024.
BTBT was down by 8.185 percent at $3.920 in the pre-market trade on the Nasdaq.
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