Bit Mining Half-Year Report Analysis: Sold 7,000 ETH as Stock Drops 95.36%

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The cryptocurrency mining sector has faced turbulent times in 2022, and Bit Mining Limited’s latest financial disclosures reflect both the challenges and strategic shifts within the industry. The company's half-year report, covering the period ending June 30, 2022, reveals a complex picture of revenue growth amid mounting losses and a steep decline in stock value.

Revenue Growth Amid Market Downturn

Bit Mining reported total revenue of approximately $492 million** for the first half of 2022, marking a **10.98% increase** compared to $438 million during the same period in 2021. This growth is primarily attributed to its mining pool operations**, which remain the core driver of income.

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The mining pool segment generated $450 million**, accounting for **91.5% of total revenue**. While this underscores the business’s reliance on pooled mining activities, it also highlights a critical issue: high operational costs. The cost of revenue for mining pool services reached **$448 million, largely due to payouts distributed to participating miners.

Challenges in Self-Operated Mining

Beyond mining pools, Bit Mining continues to invest in self-operated mining operations. During the reporting period, the company mined 10,318 ETH and 263 BTC, generating $37.8 million in confirmed mining revenue.

However, a major shift occurred after Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on September 15, 2022. With Ethereum no longer mineable via PoW, Bit Mining redirected its Ethereum mining hardware toward alternative chains—primarily Ethereum Classic (ETC).

As of June 30, 2022, the company held mining assets with an estimated hashrate of:

This pivot illustrates Bit Mining’s attempt to remain competitive despite technological disruptions in the blockchain space.

Strategic Asset Sales: 7,000 ETH Liquidated

One of the most notable revelations in the report is that Bit Mining sold approximately 7,000 ETH during the first half of 2022. This move likely aimed to generate liquidity amid falling crypto prices and rising operational costs.

At current market valuations, this sale represents a significant capital reallocation—possibly to cover losses or fund expansion into other areas such as data center operations.

Following China’s nationwide ban on cryptocurrency mining in 2021, Bit Mining relocated its data center operations overseas. Its Ohio-based mining facility contributed $3.4 million in revenue over the six-month period—a modest but growing segment.

Core Keywords and Industry Context

Key terms shaping this analysis include:

These keywords not only reflect the current state of Bit Mining but also mirror broader trends across the global mining ecosystem—particularly around geographic diversification and post-Ethereum transition strategies.

Stock Plummets 95.36%: NYSE Delisting Warning

Despite revenue gains, investor sentiment has sharply declined. Bit Mining’s stock price has fallen by 95.36% year-to-date, closing at $0.285 on September 29, 2022.

This dramatic drop triggered a compliance warning from the New York Stock Exchange (NYSE). On August 5, 2022, the company was notified that its average closing price had remained below $1 per share over 30 consecutive trading days—a violation of NYSE listing standards.

However, Bit Mining has been granted a six-month cure period to regain compliance. The company emphasized that the notice does not impact ongoing operations or trading status.

Zhang Danni, Vice President of Bit Mining, stated:

“The overall cryptocurrency market environment and declining Bitcoin prices are key factors affecting our valuation. Many industries have been impacted over the past year. We remain confident in resolving this issue promptly.”

Ownership Shifts and Institutional Confidence

Amid market volatility, ownership structures have evolved significantly.

In July 2022, control of Tsinghua Unigroup—the former major shareholder—was transferred to Beijing Zhiguangxin Holding Co., Ltd. (Zhiguangxin) following a restructuring. As a result, Zhiguangxin became Bit Mining’s largest shareholder.

Other notable stakeholders include:

Institutional investors continue to show cautious optimism:

These moves suggest underlying confidence in Bit Mining’s long-term viability despite short-term headwinds.

FAQ: Addressing Key Investor Questions

Why did Bit Mining sell 7,000 ETH?

The sale was likely a strategic decision to raise capital amid declining crypto prices and increased operational expenses following Ethereum’s shift to PoS. Liquidating part of its ETH reserves helped maintain financial flexibility.

Can Bit Mining avoid delisting from NYSE?

Yes—Bit Mining has a six-month grace period to elevate its share price above $1. The company can employ tactics such as reverse stock splits or aggressive investor outreach to meet requirements.

What is Bit Mining doing after Ethereum’s PoS transition?

The company has redirected its Ethereum mining rigs to mine Ethereum Classic (ETC). It currently operates over 4,296 GH/s in ETC hashrate and continues expanding Bitcoin mining capacity.

Is Bit Mining still profitable?

While revenue rose, the company reported a net loss of **$27 million**, up from $11.8 million the previous year. Rising costs and falling asset values contributed to the increased deficit.

Where are Bit Mining’s data centers located now?

After exiting China, Bit Mining moved operations overseas. Its primary facility is now in Ohio, USA, contributing $3.4 million in revenue during H1 2022.

Who owns Bit Mining now?

Ownership shifted in mid-2022 when Zhiguangxin took over from Tsinghua Unigroup. Sichuan Development and Sequoia Capital remain long-term holders, while Armistice Capital emerged as a major new investor.

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Looking Ahead: Adaptation in a Changing Landscape

Bit Mining’s half-year results paint a story of resilience amid adversity. While revenue grew thanks to robust mining pool activity, profitability remains under pressure due to high payout costs and falling digital asset values.

The company’s ability to pivot—relocating data centers, repurposing hardware, and managing treasury assets strategically—demonstrates operational agility. However, restoring investor confidence will require more than technical adjustments; it demands sustained profitability and clear communication.

With institutional backing continuing and strategic repositioning underway, Bit Mining may yet stabilize its position in the evolving crypto mining landscape.

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