Blockchain Daily (Hangzhou, Reporter Xu Cihao) — Bit Mining (NYSE: BTCM) reported a net revenue of ¥2.873 billion ($445.1 million) in Q2 2021, marking its first quarterly profit after six consecutive years of losses. This turnaround follows its strategic pivot from lottery services to cryptocurrency mining in late 2020.
Key Financial Highlights
- Q2 2021 Revenue: ¥28.739 billion ($4.451 billion), a 14,600% increase from Q1 2021 (¥19.6 million) and a dramatic YoY surge from Q2 2020 (¥3.6 million).
- Non-GAAP Net Profit: ¥9.8 million ($1.5 million), signaling a return to profitability.
- Stock Performance: Shares rose 7.05% to $6.83 despite broader declines in blockchain stocks.
Cryptocurrency Holdings
Bit Mining disclosed digital assets worth ¥410.8 million ($63.6 million), including:
- 1,147 BTC
- 1,083 ETH
- 61.4 million DOGE
Strategic Restructuring
1. Exiting Lottery Operations
In July 2021, Bit Mining terminated its loss-generating lottery business and dissolved its VIE (Variable Interest Entity) structure. The lottery segment had incurred losses since 2015, contributing only ¥2.7 million ($40K) in Q1 2021 while racking up ¥9.8 million ($1.5M) in net debt.
👉 Explore Bit Mining's transformation strategy
2. Focus on Crypto Mining
Post-restructuring, Bit Mining consolidated its operations overseas, focusing on:
- Cryptocurrency Mining: Deployed 7,849 Bitcoin miners (292.7 PH/s) in Kazakhstan, generating 186 BTC in Q2.
- Ethereum Expansion: Launched 600 GH/s ETH mining rigs abroad, targeting 4,800 GH/s by October 2021.
Revenue Breakdown
- BTC.com矿池贡献了27.299亿元人民币（4.228亿美元）的收入，占总收入的95%。
矿场业务
- 四川数据中心（已停运） contributed ¥73.8 million ($11.4M).
- Global Expansion: New data centers planned in the U.S. (Texas) and Kazakhstan (100 MW facility, 80% owned by Bit Mining).
FAQ Section
Q: Why did Bit Mining exit the lottery business?
A: The segment had been unprofitable since 2015, with Q1 2021 losses hitting ¥9.8 million ($1.5M). Exiting enabled sharper focus on crypto mining.
Q: How does BTC.com矿池 contribute to revenue?
A: Acquired in February 2021, BTC.com矿池 generates 95% of Bit Mining's income, handling ~10% of global Bitcoin hash rate (12,770 PH/s).
Q: What’s next for Bit Mining?
A: The company is expanding overseas mining infrastructure, with new projects in Kazakhstan and Texas, while exploring additional矿场 opportunities.
👉 Learn about Bit Mining's global growth plans
Conclusion
Bit Mining’s pivot to cryptocurrency mining—bolstered by strategic acquisitions like BTC.com and rapid海外 deployment—has reversed six years of losses. With ¥4.1 billion in crypto assets and a streamlined structure, the company is poised for sustained growth in the blockchain economy.
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