BTC Digital Stock

BTC Digital Ltd. operates as a crypto asset technology company based in the U.S. with a focus on bitcoin mining. The company also generates revenue through mining machines resale and rental business operations.

For the year ended December 31, 2022, the company generated a substantial majority of its revenue from bitcoin mining. The company stores all of the company’s bitcoins mined in hot wallets, or cryptocurrency wallets connected to the internet, and may from time to time exchange bitcoins mined for fiat currency to generate cash flow to fund the company’s subsidiaries’ business operations.

As of December 31, 2022, the company’s subsidiaries owned a total of 1,754 mining machines, of which 1,482, or 84.5% were under operation with a total hash rate of 140PH/S. Through the company’s subsidiaries, the company manages and operates its mining machines at three hosting facilities operated by a hosting facility owner in Jellico, Tennessee, Cumberland, Kentucky and New Tazewell, Tennessee, respectively. For the year ended December 31, 2022, the company mined a total of 84.9638 bitcoins.

The company has maintained business relationship with a major machine manufacturer, AGM Technologies Ltd, from which the company sources mining machines on an order-by-order basis.

Growth Strategies

The company’s growth strategies include growing the company’s business lines; increasing research and development efforts; and offering crypto asset management services.

Bitcoin Mining Operations

Mining Machines

As of December 31, 2022, the company’s network hash rate for all mining machines operated was 38PH/S.

Suppliers

For the year ended December 31, 2022, AGM Technologies Ltd and Bitmain Technologies Ltd were the company’s main suppliers for the mining machines used in the company’s bitcoin mining operations.

Hosting Facilities

Hosting facilities are owned and operated by third parties, with whom the company enters into agreements for the hosting of the company’s subsidiaries’ mining machines.

Through the company’s subsidiaries, it manages and operates the company’s mining machines at three hosting facilities operated by a hosting facility owner in Jellico, Tennessee, Cumberland, Kentucky, and New Tazewell, Tennessee, respectively. The third-party facility operator also equips these mining farms and facilities with supporting staff to trouble shoot basic everyday technical difficulties. As of December 31, 2022, among all the machines owned by the company’s subsidiaries, 1,482, or approximately 84.5% of the total 1,754 mining machines, were under operation.

Mining Pools

Through the company’s subsidiaries, the company mines bitcoins exclusively through participating in mining pools. The company participates in two mining pools, BTC.com pool, and F2Pool, for bitcoin mining. For the year ended December 31, 2022, the company mined 77.3922 bitcoins from participating in BTC.com pool, and 7.5716 bitcoins from participating in F2Pool.

Mining Results

Through the company’s subsidiaries, the company started its bitcoin mining operations in 2022.

As of December 31, 2022, the company stored all of its bitcoins in hot wallets.

As of December 31, 2022, the company’s network hash rate for all mining machines operated was 140PH/S.

Mining Machines Resale

In addition to bitcoin mining, the company resells mining machines. The company has maintained business relationship with a major mining machine manufacturer, AGM Technologies Ltd, from which the company sources mining machines on an order-by-order basis. The company will then resell mining machines when there is a shortage of machines available in the market and resale prices are higher.

In the year ended December 31, 2022, the company sold 944 bitcoin mining machines in total, with models, including Antminer S19XP, Antminer L7 9050 and Antminer L7 8800, to customers.

For the year ended December 31, 2022, Skyline II Acquisition Corporation and Bitmain Technologies Ltd were the company’s main suppliers for the company’s mining machines resale operations.

For the year ended December 31, 2022, the company sold mining machines to a total of three customers, and purchase from DGC Gaming Advisory Limited, New Digital Trading Company Limited, and Morgogo Company Limited constituted 47.1%, 31.4%and 21.5% of the company’s total sales, respectively.

Mining Machines Rental

In October and November 2022, 1,200 mining machines, representing 68.4% of the company’s total mining machines, was rented out to customers. For the year ended December 31, 2022, the company generated rental fees from one customer, Lobo Group Limited, representing 100% of total rental fees generated.

Marketing and Branding

As of December 31, 2022, the company had three members in its marketing and branding team. The company’s marketing team also connects with potential customers through organizing and participating in cryptocurrency events and conferences, and maintains relationship with existing customers through visits and social events.

History

The company was founded in 2006. It was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023.