BIT Mining nets $445 million in Q2 revenues thanks to BTC.com's accounting method

Quick Take

  • U.S.-listed bitcoin mining firm BIT Mining has reported $443 million in Q2 revenues – a whopping 150 times growth over the first quarter.
  • BTC.com contributed 95% to that thanks to how the pool was accounted for its revenue in the U.S.

U.S.-listed bitcoin mining firm BIT Mining has reported $443 million in Q2 revenues – a whopping 150 times growth over the first quarter – thanks to the acquisition over mining pool BTC.com.

Previously known as 500.com, Shenzhen-based BIT Mining said in an unaudited earnings report Tuesday that 95% of the Q2 revenues came from BTC.com, which it acquired from Bitmain earlier this year.

This is the first time a crypto mining pool's financial numbers are released as part of a public mining firm's earnings report, which also reflects how mining pools was accounted for their revenues in the U.S.

Per BIT Mining's report, BTC.com's $422.8 million in revenues from April 15 to June 30 essentially referred to all the block rewards the pool had received from the bitcoin blockchain before distributing almost all of them to its miner customers.

Mining pools are hashing power aggregators. After mining blocks, they distribute the block rewards pro rata with each miner customer's hash rate contribution. They make money by charging roughly a 2.5% handling fee. BTC.com operates in a Full Pay Per Share (FPPS) model, which means it pays out both block subsidies and transaction fees to miner customers.

Hence $414 million of BTC.com's total revenues in Q2 – about 98% – essentially belonged to its miner customers but were booked as cost of revenue "for the allocation to pool participants."

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