BIT Mining Limited (BTCM) is down 4.59% in the pre-market trading session at the price of $8.11 despite any recent news.
BTCM Financial Results for the Q2, 2021
On 17th August 2021, BTCM released its unaudited financial results for the second quarter ended on 30th June 2021. Net revenues were RMB2,873.9 million (US$445.1 million) in the second quarter of 2021. It indicates a sharp gain of RMB2,854.3 million from RMB19.6 million for the first quarter of 2021. Likewise, a sharp rise of RMB2,870.3 million from RMB3.6 million for the second quarter of 2020. Net loss attributable to BIT Mining was RMB97.9 million (US$15.2 million) in the second quarter of 2021. For the first quarter of 2021, net income attributable to BIT Mining of RMB13.2 million. Net loss was RMB86.3 million for the second quarter of 2020.
BTCM reported an operating loss of RMB101.3 million (US$15.7 million) in the second quarter of 2021. It represents a gain of RMB84.8 million from RMB16.5 million for the first quarter of 2021. Likewise, an increase of RMB49.0 million from RMB52.3 million for the second quarter of 2020. The improvement in operating loss is due to the impairment of cryptocurrencies and net loss on the disposal of cryptocurrencies. Basic and diluted loss per ADS was RMB1.64 (US$0.25) for the second quarter of 2021.
BTCM Entered into Definitive Purchase Agreement
On 28th July 2021, BTCM announced that it had entered into a definitive purchase agreement. The agreement aims to acquire 2,500 new bitcoin mining machines for a total consideration of almost $6.6 million. The company expects the Acquired Machines to improve its theoretical maximum total hash rate capacity by roughly 165 Peta hashes per second. The Acquired Machine is expected to be delivered within one week. Following delivery, the company plans them to be shipped to Kazakhstan for deployment.
Removal of VIE Structure and Disposal of Chinese Lottery Business
On 23rd July 2021, BTCM published its decision to abolish its variable interest entity structure and to dispose of its Chinese lottery business for nil consideration. Under the VIE structure, BIT Mining’s consolidated subsidiaries were primarily engaged in the company’s Chinese lottery-related business. It has contributed RMB2.7 million (US$0.4 million), or 13.6%, of the company’s total revenue for the three months ended 31st March 2021. It has rendered a net loss of RMB9.8 million (US$1.5 million) during that period. The total assets held by the VIE subsidiaries represented RMB82.8 million (US$12.6 million), or 6.3%, of the company’s total assets. The net debt held by the VIE subsidiaries was RMB161.6 million (US$24.6 million).
