BTC Digital Ltd. (formerly Meten EdtechX Education Group Ltd.) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments.
For the three months ended September 30, 2024, BTC Digital Ltd. generated revenues of $2.6 million, a substantial increase of 202.84% compared to $845,000 in the same period of 2023. This growth was primarily driven by a strong performance in mining machine resale, which accounted for $2.1 million, alongside $0.4 million from miner rentals. However, total revenues for the nine months ended September 30, 2024, decreased to $7.5 million from $8.1 million in the prior year, reflecting a 7.3% decline. The decrease was attributed to a 52% drop in revenue from Bitcoin mining, impacted by increased machine rentals, a Bitcoin halving event, and delays in deploying new mining machines.
Despite the revenue growth in Q3, the company reported a gross loss of $261,000 for the quarter, although this was an improvement from a gross loss of $541,000 in Q3 2023. The gross loss margin improved significantly from 64% to 10.2%. The loss from operations for Q3 2024 was $542,000, down from $694,000 in Q3 2023. The net loss for the quarter also decreased to $571,000 from $1.007 million year-over-year.
For the nine-month period, the loss from operations increased to $2.2 million from $1.8 million in the previous year, while the net loss slightly improved to $2.0 million from $2.1 million. The company’s basic loss per share for the nine months ended September 30, 2024, was $0.76, compared to $1.57 in the prior year.
Strategically, BTC Digital Ltd. has expanded its operations, now operating 2,021 mining machines with a total hash rate of 213 PH/S. The company relocated its mining operations to a newly acquired facility in Arkansas and has maintained a partnership with AGM Technologies Ltd. for sourcing mining machines. The company also reported a capital commitment of $3.83 million related to the purchase of miners and the acquisition of a BTC mining facility.
As of September 30, 2024, BTC Digital Ltd. held digital assets valued at $436.7 million and reported total assets of $25.1 million, an increase from $24.5 million at the end of 2023. The company’s total liabilities decreased to $4.6 million from $5.1 million during the same period. The total equity attributable to shareholders rose to $20.4 million, reflecting the issuance of 1.2 million ordinary shares during the period.
Overall, BTC Digital Ltd. continues to navigate a challenging market while focusing on expanding its operational capabilities and revenue streams in the cryptocurrency sector.
About BTC Digital Ltd.
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