BTC Digital .(US:BTCT)2024-11-14 21:00Financial Performance - Revenues for the nine months ended September 30, 2023, were $845,000, a significant increase from $2,559,000 in 2024[11] - Gross loss for the three months ended September 30, 2023, was $(651,000), compared to $(603,000) in 2024[11] - Net loss for the nine months ended September 30, 2023, was $(1,007,000), while the net loss for the same period in 2024 was $(571,000)[11] - For the nine months ended September 30, 2023, BTC Digital Ltd. reported a net loss of $2,122,000, which is a slight improvement from the net loss of $2,006,000 for the same period in 2024[17] - The Group's net loss per share for the nine months ended September 30, 2024, was $0.21, a decrease from $0.63 for the same period in 2023[92] Equity and Shareholder Information - Total equity attributable to shareholders of the company increased from $19,442,000 as of December 31, 2023, to $20,431,000 as of September 30, 2024[10] - The company issued 1,199,917 ordinary shares, raising $2,424,000 during the reporting period[14] - The weighted average shares used in calculating net loss per share increased from 1,593,789 in 2023 to 2,695,568 in 2024[11] - As of December 31, 2023, there were 2,097,535 ordinary shares issued and outstanding, which increased to 3,297,452 by September 30, 2024[115] - The Company authorized the issuance of 500,000,000 ordinary shares with a par value of $0.0001 per share as of September 27, 2019[98] Cash Flow and Investments - The company generated a net cash flow of $2,048,000 from operating activities in 2023, increasing to $3,385,000 in 2024[17] - Cash used in investing activities was $3,082,000 in 2023, which increased to $4,292,000 in 2024, indicating a rise in capital expenditures[17] - Financing activities generated a net cash inflow of $1,353,000 in 2023, which decreased to $891,000 in 2024[17] - The Company has a capital commitment totaling $3.83 million as of September 30, 2024, related to the purchase of miners and acquisition of a BTC mining facility[131] Assets and Liabilities - Accumulated deficit as of September 30, 2024, was $(188,605,000), compared to $(186,599,000) as of December 31, 2023[15] - Total liabilities and shareholders' equity as of September 30, 2024, were $25,063,000, up from $24,543,000 as of December 31, 2023[10] - The Group's property and equipment, net, decreased to $11,145,000 as of September 30, 2024, from $12,702,000 as of December 31, 2023, reflecting a decline in asset value[87] - The Group's accounts receivable decreased to $1,692,000 from $5,485,000 as of December 31, 2023, indicating a significant reduction in receivables[82] Operational Highlights - The company is primarily engaged in the bitcoin mining business and also generates revenue through mining machines resale and rental operations[18] - The Group's revenue primarily comes from digital asset mining, where it provides computing power to mining pool operators[58] - The Group generated a total of 1,049 bitcoins from mining services for the nine months ended September 30, 2024, compared to 2,882 bitcoins for the year ended December 31, 2023[84] Expenses and Costs - Operating expenses for the three months ended September 30, 2023, were $(1,793,000), while in 2024, they increased to $(2,239,000)[11] - The company reported a depreciation expense of $2,305,000 in 2023, which is projected to increase to $2,700,000 in 2024[17] - Share-based compensation expenses rose significantly from $138,000 in 2023 to $571,000 in 2024, indicating increased employee compensation costs[17] - The Group recognized share-based compensation expenses of $571,000 for the nine months ended September 30, 2024, up from $138,000 for the same period in 2023[97] Financial Reporting and Compliance - The Company has consolidated the financial results of Shenzhen Meten and Shenzhen Likeshuo in accordance with U.S. GAAP[38] - The Group's consolidated financial statements are presented in US dollars, rounded to the nearest thousands[39] - Digital assets held are accounted for as intangible assets with indefinite useful lives and are assessed for impairment annually[48] - The Group has not recorded any impairment losses for the years ended December 31, 2023, and for the nine months ended September 30, 2024[53] - Deferred income tax assets and liabilities are recognized for future tax consequences attributable to temporary differences[61] Market and Risk Factors - Market risks for the three months ended September 30, 2024, remain consistent with the previous annual report disclosures[188] - The outstanding loan balance secured by BTC collateral increased from 125,000 USDT as of December 31, 2023, to 544,000 USDT as of September 30, 2024[91]