Read the 3 key messages hidden in the Q1 earnings report of listed miner “Bit Mining BTCM

Bit Mining BTCM market layout has been effective in the beginning.

By analyzing Bit Mining BTCM’s first quarter earnings report, we found that this full industry chain listed mining company has successfully completed its transformation layout, and more importantly, people’s trust in blockchain and crypto listed companies has increased significantly, as listed companies perform better in terms of compliance, security and transparency compared to non-listed companies, which are all “good factors” driving the next wave of growth for Bit Mining BTCM These are the ‘silver linings’ that will drive the next wave of growth in the bit mining industry, BTCM.

On May 10, Bit Mining BIT Mining Limited (formerly 500.com Limited), the industry’s leading cryptocurrency mining company, reported unaudited financial results for the first quarter ended March 31, 2021.

Bit Mining’s (NYSE BTCM) long-term strategy encompasses the entire cryptocurrency value chain, with core businesses including cryptocurrency mining, mining pools, data center operations and mining machine manufacturing. The company has deployed a large and growing number of bitcoin mining machines, and owns three cryptocurrency hydroelectric mining sites with a total electrical load of 435MW, as well as the entire BTC.com mining pool business and BTC.com website, which have been acquired by BTCM. In early April, BTCM also signed an acquisition agreement with Bee Computing, a 7nm cryptocurrency mining machine manufacturer which further completes the deep integration of the cryptocurrency vertical to achieve business self-sufficiency, while also further enhancing market competitiveness.

On March 8, 2021, 500.com made an official announcement that the company was renamed BIT Mining Limited and subsequently changed its ticker symbol from WBAI to BTCM, transforming itself into a leading global cryptocurrency mining company. Overall, the company’s stock price has trended upward since the name change to Bit Mining, soaring from $20 on March 8 to $24.9 on March 19. While the stock declined somewhat in the following month (coming in at a low of $14.20 on April 19), it has now started to rebound, reaching $15.11, or 1.82%, as of the close of trading on May 7 EST. It is particularly worth mentioning that in the evening of May 10 blockchain U.S. stocks fell sharply, Bit Mining BTCM bucked the trend to close up 0.86%, while Ninth City fell 13%, Jia Nan Technology fell 12%, Bit Digital, Inc fell 8.8%, Xunlei, China Global Shipping and China Network Carrier Line fell more than 6%, the market’s confidence may come from Bit Mining BTCM since the transformation of the release of its first earnings report.

Read the 3 key messages hidden in the Q1 earnings report of listed miner "Bit Mining BTCM

What are the highlights given by Bit Mining BTCM in their first earnings release after the name change?
Since Bit Mining BTCM successfully transitioned from 500Lottery.com, they have become a “triumvirate” of US-listed mining companies alongside Jia Nan Technology and Yibang International.

Bit Mining BCTM’s current performance on the stock market is considered moderate, with a P/E ratio that is three times that of Jia Nan Technology and comparable to Yibang International. Although the volume may seem to be a bit different from Jia Nan Technology and Yibang International, this is mainly related to the low total equity number of Bit Mining BTCM. In fact, if we dig deeper into the relevant data disclosed in Bit Mining BTCM’s Q1 earnings report, we can actually find quite a few highlights –

First, Bit Mining BTCM’s operating loss decreased significantly. In the first quarter of 2021, Bit Mining BTCM reported an operating loss of RMB16.5 million (approximately $2.5 million), a 67.9% narrower quarter-over-quarter operating loss than the previous quarter’s RMB51.4 million, and a 55.2% narrower year-over-year operating loss of RMB36.8 million. In addition, Bit Mining BTCM’s non-GAAP operating loss (Non-GAAP operating loss) was RMB16.2 million (approximately $2.5 million), down 50.0% compared to the fourth quarter of 2020 and down 48.9% compared to the first quarter of 2020. The data does not lie, Bit Mining BTCM operating loss is becoming less and less, reflecting the success of the previous business transformation from the side, and the ability to turn around is continuing to grow.

It is worth noting that Bit Mining BTCM is investing larger costs in deploying mining resources in the first quarter, mainly including.

In January, Bit Mining BTCM announced plans to issue approximately $14.4 million worth of Class A common stock as consideration to acquire a number of spot Bitcoin miners, including S17, T17, M20 and other models, for a total of approximately 918.5 PH/S of computing power.

In February, Bitmain BTCM announced that it had entered into a definitive purchase agreement for 5,900 Bitcoin mining machines for a total of approximately RMB 55.2 million (approximately $8.5 million) from the same company that Bitmain recently announced had entered into the purchase agreement, Bee Computing. In addition, Bitmain BTCM has signed a framework agreement with another company to purchase up to 10,000 Bitcoin futures miners.

Frankly, the fact that Bitmines BTCM was able to significantly reduce its operating losses despite significant costs shows that they are well positioned to deal with the “tough” competition in the mining market after the transition.

Secondly, Bit Mining BTCM’s net income has grown significantly. In the first quarter of 2021, Bit Mining BTCM’s net revenue reached RMB19.6 million (approximately $3 million), up 117.8% YoY from RMB9 million in the previous quarter, and up 532.3% YoY from RMB3.1 million in the same quarter last year. The reason for such a large increase is mainly because Bit Mining officially earned revenue from its cryptocurrency mining business on February 27, 2021, with revenue totaling RMB11.8 million (approximately $1.8 million) in approximately one month, accounting for 60.2% of total net revenue.

There is no denying that much of Bit Mining BTCM’s notable success in terms of net income in the first quarter of 2021 was related to the smooth launch of its bitcoin mining business. As disclosed in the quarterly report, Bit Mining BTCM has mined 147 bitcoins to date (Carbon Chain Value Note: These 147 bitcoins were mined independently by Bit Mining BTCM and are not included in the 356.04342 bitcoins received when it signed a directed offering agreement with Good Luck Information Technology Ltd. in February of this year, which was delivered in the first quarter). Based on the number of mining machines currently deployed by BitMining BTCM, the theoretical computing power has reached 1031.5 PH/s, with a daily output of up to 4 bitcoins, and the mining operation has gradually stabilized and is slightly gaining.

In addition, BTCM completed the acquisition of Loto Interactive in the first quarter of 2021. Loto Interactive’s main business has now shifted to blockchain data centers, commonly known as “mining farms” in the digital currency industry. Information shows that the Bitcoin data center built and operated by Loto Interactive is already one of the largest and most fully qualified blockchain data center projects in China. With the successful completion of the M&A transaction, it represents the strategic transformation of Bit Mining BTCM blockchain and digital currency business has been basically completed, and also laid a solid foundation for the subsequent market force.

Bit Mining BTCM market layout has been effective in the beginning
Among the listed companies in the mining industry, the core business of Jia Nan Technology and Yibang International is still mining machine manufacturing, while listed companies like Tesla, MicroStrategy and Square are choosing to add spot bitcoin directly to their balance sheets.

In contrast, Bit Mining BTCM has chosen to directly lay out the top of the entire digital currency industry ‘food chain’, covering the entire value ecosystem of its own mining farms, its own mining pools and its own mining and mining machine production (carbon chain value note: Bit Mining BTCM has acquired the ability to own the next generation 7nm bitcoin and ethereum ASIC mining machine development and manufacturing through the acquisition of Honeybee Computing), which in currently unique among publicly traded mining companies in that it can not only profit from its internal self-produced miners, but also gain a more favorable advantage in external partnerships.

As you can see from the latest earnings data, Bit Mining BTCM’s market layout is already showing results. On the one hand, if the company is “purely” engaged in the pool and mining business, it will be difficult to get the goods at the first time in the market environment of chip shortage and capacity decline, and then miss the best mining time; on the other hand, if the company is “purely” engaged in the mining machine business, it may easily generate large losses in the market environment of falling coin prices, after all, when the coin price drops to the “shutdown price” que, many miners will choose to bear the pain and cut off. The company’s business is a major player in the mining industry. Through the whole industry chain layout, Bit Mining BTCM can both further expand profits under a bull market and reduce losses when the market is volatile, with very large room for elastic growth.

Not only that, the complementary full industry chain layout has become a strong moat for Bit Mining BTCM. According to public information, Bit Mining BTCM began to study blockchain as early as 2018, released a blockchain white paper and in-depth understanding of cryptocurrencies, exchanges and other related information, and even traveled to North America many times to investigate mining farms. Relying on the mature public company experience accumulated in the past and the advantage of blockchain industry resources cultivated for many years, Bit Mining BTCM is developing blockchain mining strategy in a planned, strategic and gradual manner and moving forward at full speed towards a new direction of transformation and development.

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Summary

It should be noted that at this stage, some of the futures mining machines of Bit Mining BTCM have not yet been delivered, which means that once all the mining machines are in place in the second half of the year, Bit Mining BTCM’s arithmetic resources will be further enhanced and the average daily number of bitcoins mined will increase, which will inevitably lead to increased business expansion in the mining sector.

It is worth mentioning that the first quarter earnings data released by Bit Mining BTCM this time around relates to the January-March performance, but the company actually had a number of bright performances in April this year, such as

The acquired Bit Fawn mining pool has generated $8.44 million in gross profit in April.

The mining business has generated about RMB28.3 million (about $4.3 million) in revenue in April.

All of these positive numbers are expected to be reflected in Bit Mining BTCM’s second quarter and subsequent earnings reports.

With Coinbase successfully landing on NASDAQ and Bitcoin once hitting an all-time high of $60,000, this bull run has lasted longer than before. By analyzing Bit Mining BTCM’s Q1 earnings report, we found that the full chain listed mining company has successfully completed its transformation layout and more importantly, trust in blockchain and crypto listed companies has increased dramatically as listed companies perform better in terms of compliance, security and transparency compared to non-listed companies, which are the ‘good factors’ driving the next wave of growth for Bit Mining BTCM These are the ‘good factors’ that will drive the next wave of growth for Bitmines BTCM.

There is no doubt that the future of Bitmining BTC will be better and better!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/read-the-3-key-messages-hidden-in-the-q1-earnings-report-of-listed-miner-bit-mining-btcm/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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