BIT Mining reports 40% dip in revenue during Q1 2022

BIT Mining reported a 40.4% dip in revenue, totaling $296.7 million, in Q1 2022 compared to the previous three months.

The publicly traded Chinese company also saw a net income of $1.2 million, compared to a net loss of $4.1 million for the fourth quarter of 2021, according to an earnings report released on Friday.

As pointed out by the company, a majority of that revenue ($272.3 million) came from its mining pool business, which decreased by about 42.7% from the previous quarter. That was in part due to the “effect of declines in prices of cryptocurrencies in the first quarter of 2022,” per the statement.

The increase in net income was moved by a decrease in general and administrative expenses, a decrease in losses on disposal of mining machines and a decrease in other operating expenses, the company also said.

BIT Mining’s multiple business segments include self-mining, a mining pool and data center operations.

During the first quarter, BIT Mining produced 166 BTC, generating a revenue of about $6.9 million. It also mined 5,420 ETH, generating roughly $16.0 million.

The company’s current bitcoin mining hash rate is 246.1 petahash per second. Its Ethereum hash rate capacity is 4,452.7 gigahash per second.

Per the announcement, BIT Mining has completed a 50-megawatt facility in Ohio.

“Over the past quarter, we focused on our expansion in North America and have made significant progress in the construction of our data centers in Ohio,” said the company’s CEO Xianfeng Yang. “Given our early-mover advantage in Ethereum mining, we are also making inroads into Proof-of-Stake (POS) operations by providing a series of services including governance and monitoring, account system and nodes management.”

The company’s stock was down -0.56% on Nasdaq as of press time, while most other bitcoin mining stocks were up during the day's trading session. 

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Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).