Hong Kong-based crypto miner BIT Mining's (NYSE: BTCM) revenue surged by RMB 2.85 trillion ($440 million) in Q2 2021 compared to the first quarter of the year, thanks to its April acquisition of mining pool BTC.com, according to the company's earnings release. Shares were rising 7% to $6.84 on Tuesday following the release of the report.
- BIT Mining's total net revenue was $445 million for the quarter, compared with just $3 million in Q1 2021 and $550,000 in the year-ago quarter.
- The vast majority of its income, 95% as per the earnings report, came from newly acquired mining pool BTC.com, operated by BitDeer.
- But BIT Mining's $2 million in net income in Q1 2021 turned into a net loss of $15.2 million for the three months ending June 30. BIT Mining attributed the loss to investments that fueled its expansion into crypto and a steep fall in crypto prices.
- Operating costs increased in line with the revenue increase, from $5.6 million in Q1 to $443.9 million in Q2.
- BIT Mining's cash and cash equivalents have also dwindled by two-thirds to $10.1 million as it invested in mining.
- Previously an online sports lottery operator called 500.com, BIT Mining announced it was pivoting to mining in January. The company has now completed its transformation into a crypto mining and data center company, it said. BIT Mining's theoretical total bitcoin mining capacity is 1,425.3 PH/s, the report said.
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