BIT Mining Limited is primarily engaged in cryptocurrency mining for the company’s own account, data center operation to host cryptocurrency mining activities and miner manufacturing. The company is pursuing a development strategy to focus on cryptocurrency mining operations globally.
The company operates mining machines that perform blockchain computations measured in ‘hash rate’ or ‘hashes per second.’ A ‘hash’ is the blockchain computation run by mining machines.
Cryptocurrency Mining Busin...
BIT Mining Limited is primarily engaged in cryptocurrency mining for the company’s own account, data center operation to host cryptocurrency mining activities and miner manufacturing. The company is pursuing a development strategy to focus on cryptocurrency mining operations globally.
The company operates mining machines that perform blockchain computations measured in ‘hash rate’ or ‘hashes per second.’ A ‘hash’ is the blockchain computation run by mining machines.
Cryptocurrency Mining Business
The company operates cryptocurrency mining machines for the sole purpose of mining cryptocurrencies (Bitcoin, Ethereum Classic, Litecoin and Dogecoin), which the company may sell for fiat currency for the company’s own account. As of December 31, 2023, the company’s Bitcoin mining machines were all located in the United States. For the year ended December 31, 2023, the company produced 154 Bitcoins from its Bitcoin cryptocurrency mining operations. As of December 31, 2023, the total hash rate capacity of the company’s online Bitcoin mining machines, was approximately 64 PH/s. The company also produced 94,977 ETC from its cryptocurrency mining operations.
The company has successfully produced approximately 8,000 Dogecoin/Litecoin mining machines together with the company’s partners. The company has deployed all of these Dogecoin/Litecoin mining machines at the company’s data center in the U.S. for use in the company’s self - mining business. For the year ended December 31, 2023, the company produced 144.6 million DOGE and 60,733 LTC from the company’s DOGE/LTC cryptocurrency mining operations. As of December 31, 2023, the total hash rate capacity of the company’s DOGE/LTC mining machines in operation was approximately 22,928 GH/s.
Data Center Services
The company operates data centers which provide rack space, utility, and cloud services such as virtual services, virtual storage and data backup services to third-party cryptocurrency mining companies. The company’s data centers also host a number of the company’s own cryptocurrency mining machines.
The company formerly conducted its data center business in mainland China through Loto Interactive and its subsidiaries. After suspending the operations of two data centers in Sichuan Province, China, the company has migrated its data center operations overseas and is in the process of investing in or constructing cryptocurrency mining data centers in overseas jurisdictions outside of mainland China.
In September 2021, the company entered into a Membership Interest Purchase Agreement and certain other auxiliary agreements with Viking Data Centers, LLC to acquire the 51% equity interest in Asgard Data Centers LLC, which intended to operate a cryptocurrency mining data center in the Ohio Mining Site. In October 2021, the company increased its equity interest ownership in the Ohio Mining Site to 55%. The Ohio mining site has a total planned power capacity up to 150 megawatts. In June 2022, the company entered into an agreement with Viking Data Centers that the company agreed to purchase all remaining equity interest from Viking Data Centers, by transferring certain assets that represent 67.5 megawatts, or 45%, of total planned power capacity at the Ohio Mining Site. After completion of the transaction, the company has exclusive access to 82.5 megawatts of planned electrical power and Viking Data Centers has exclusive access to the remaining 67.5 megawatts, in accordance to their respective equity ownership immediately prior to the transaction. In December 2022, 82.5 megawatts have been completed and in operation in the Ohio Mining Site.
Digital Assets
The company holds its own digital assets mined through its cryptocurrency mining operation, which primarily consist of Bitcoin, Dogecoin, Ethereum and USDT. As of December 31, 2023, the company held 23 Bitcoins, 12.2 million Dogecoins, 891 Ethereum, 887,466 USDC, 11,955 Litecoin and 2.6 million USDT, which are the only digital assets individually accounts for more than 1.0% of the company’s total assets as of December 31, 2023 for continuing operations. These six specific digital assets, on a cost basis, in the aggregate account for 12.93% of the company’s total assets for continuing operations as of December 31, 2023. The other digital assets that the company holds collectively, on a cost basis, represent less than 0.1% of the company’s total assets for continuing operations as of December 31, 2023.
The company’s digital assets are held through BIT Mining Limited, the company’s ultimate Cayman Islands holding company, as well as the company’s consolidated subsidiaries in British Virgin Islands, United States and Hong Kong. As of December 31, 2023, the company held 110 Bitcoins, 24.2 million Dogecoins, 1,018 Ethereum, 6,916 Litecoins, 278,650 USDC and 2.7 million USDT.
The company’s cryptocurrency business focuses on mining cryptocurrencies for its own account, operating data centers to host the company’s and customers’ mining machines. The company does not facilitate the trading of, or investing in, cryptocurrencies, although the company may sell digital assets mined by the company for fiat currency for its own account from time to time. The company intends to mine cryptocurrencies that are generally not deemed as ‘securities’.
Regulatory Investigation
The company has been cooperating with the U.S. Department of Justice (the ‘DOJ’) and the U.S. Securities and Exchange Commission (the ‘SEC’) in connection with their investigations into the company. The company has been in separate discussions with the Staff of the SEC’s Division of Enforcement and the DOJ regarding potential resolutions to settle these matters.
History
The company was founded in 2001. It was incorporated under the laws of the Cayman Islands in 2007. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in 2021.
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