Bit Digital, Inc. Announces 2024 Strategic Priorities
NEW YORK, Feb. 12, 2024 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York City, is pleased to announce its strategic priorities for 2024.
"Our strategic priorities for 2024 are the cornerstone of our success, embodying five essential pillars that will guide Bit Digital's focus and direction," said Sam Tabar, CEO of Bit Digital. "Together, these priorities form the blueprint that should set the stage for a year of groundbreaking achievements."
The following priorities are subject to change based on market conditions and other factors and are not necessarily presented based on priority ranking.
- Expand the active bitcoin mining fleet
- Diversify and grow Bit Digital AI
- Maintain a strong and flexible balance sheet
- Increase our treasury holdings of staked ETH with retained earnings
- Continued focus on sustainability
Expand the active bitcoin mining fleet
The Company targets doubling the size of its active bitcoin mining fleet to approximately 6.0 EH/s during 2024. The Company anticipates a significant portion of the growth will be executed following the bitcoin 'halving' (expected in April 2024) when it anticipates attractive procurement opportunities for mining equipment. In expanding the mining fleet, Bit Digital also aims to increase its overall fleet efficiency and lower its marginal production cost by procuring high-efficiency machines.
Diversify and grow Bit Digital AI
The Company's Bit Digital AI business currently has an approximate $50 million annualized revenue run-rate with its anchor customer contract. The Company aims to increase the revenue run-rate of this business materially in 2024 through both expanding the scope of its existing contract and by onboarding new customers. The Company is targeting $100m of run-rate AI revenue by year-end 2024.
Maintain a strong and flexible balance sheet
As of January 31, 2024, Bit Digital had approximately $23 million of cash, approximately $74 million worth of digital assets, and zero debt. A strong balance sheet has been instrumental in enabling the Company to withstand downturns in bitcoin pricing and act opportunistically when equipment market falls to attractive levels. While the Company's growth plans for 2024 will require capital to achieve, Bit Digital intends to pursue growth with prudent management of its balance sheet.
Increase our treasury holdings of staked ETH with retained earnings
Bit Digital remains optimistic on the future of the Ethereum network and will continue to systematically convert a portion of its mined bitcoin into ETH for the purpose of staking ETH to generate yield. The Company had approximately 12,752 ETH actively staked in native and liquid staking protocols as of December 31, 2023.
Continued focus on sustainability
Approximately 99% of our fleet's run-rate electricity consumption was generated from carbon-free energy sources as of September 30, 2023[1], highlighting our commitment to sustainable practices in the digital asset mining industry. Bit Digital aims to continue leading by example as it pertains to sustainably mining bitcoin and ultimately aims for its mining operations to become entirely carbon-free.
"As we navigate through 2024, our mission at Bit Digital is clear and ambitious," mentioned Tabar. "We are set to double our hashrate in 2024 while simultaneously our Bit Digital AI business line is on a path to expand its partnerships and forge new ones. Sustainability remains at the core of our operations, as we expect to maintain our green mining operation. Additionally, we're continuing our Proof-of-Stake endeavors, all while maintaining a robust and flexible financial foundation. This is more than growth; it's a commitment to innovation, sustainability, and financial prudence."
About Bit Digital
Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence ("AI") infrastructure headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. The Company has also established a business line, Bit Digital AI, that offers infrastructure services for artificial intelligence applications. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.
Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 3.D of our Annual Report on Form 20-F for the fiscal year ended December 31, 2022. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital's production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors. See "Safe Harbor Statement" below.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
[1] 99% carbon-free figure is based on data provided by our hosts, publicly available sources, and internal estimates.
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