By Jad Malaeb, Benzinga
Bit Digital (NASDAQ: BTBT) has leveraged its past success to improve its current operations and financials.
For one, Bit Digital has expanded its Bitcoin mining fleet into Canada and Iceland, transforming it into a global, institutional grade operation. As a result, Bit Digital’s hash rate – the processing capacity of its computer fleet – has reached 2.7 exa-hash per second. One exa-hash is equivalent to one quadrillion hashes per second. The higher processing power means that Bit Digital is more likely to solve the mathematical operation required to validate a transaction, which means it’s more likely to be rewarded with Bitcoin.
According to Bit Digital, their 39,000 miners since inception have yielded over 5,270 Bitcoins, but the company has not let its emphasis on processing power affect its sustainability goals. Bit Digital defines itself as an “American sustainability-focused generator of digital assets,” and its actions are verifying that. The recent mining operation in Iceland, for example, is 100% based on a combination of geothermal and hydro energy generated from the country’s closed power grid.
Additionally, the company recently introduced Ethereum Staking as a complement to their large-scale Bitcoin mining operations. Since its pivot to a Proof-of-Stake consensus mechanism, Ethereum has reduced its energy use and carbon footprint by more than 99%. Bit Digital’s expansion into Ethereum Staking for itself simultaneously improved the company’s sustainability practices and diversified its revenue stream. It also gave investors access to a burgeoning blockchain economy, from which many smart contract applications may arise. The company says 85% of its miners run on carbon-free energy.
As of March 31, 2023, Bit Digital held approximately $27.9 million in cash and $42.1 million in digital assets. The company uses no leverage, miner-purchase obligations or infrastructure capex funding commitments. At the end of 2022, the company generated $32.3 million in revenue and had $32.7 million in cash with zero debt. During 2022, the company mined 1,247 Bitcoins for an average production cost of $12,942 per Bitcoin and an average electricity cost of $0.05 kilowatts per hour (kWh).
When market sentiment becomes bullish again, “risky” assets like cryptocurrency may pique investors’ interest once more. Bit Digital has a demonstrated history of large percentage returns, and it has only strengthened its operations. For those waiting for potential opportunities in crypto, Bit Digital may be one to watch.
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Bit Digital is large scale publicly-listed bitcoin miner on the NASDAQ. Headquartered in New York with operations throughout North America and Iceland, our management team leads with international expertise in finance, investment, and technology.
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