The cryptocurrency mining sector continues to face significant headwinds in 2025, and Bit Mining Limited (BIT Mining) is no exception. The company’s recently released half-year report for the period ending June 30, 2022, reveals a complex financial picture — strong revenue growth on one hand, and mounting losses and declining stock performance on the other. This deep dive explores the key takeaways from the report, operational shifts, asset strategy, and market challenges shaping Bit Mining’s trajectory.
Revenue Growth Driven by Pool Operations
For the six months ended June 30, 2022, Bit Mining reported total revenue of $492 million**, marking a **10.98% year-over-year increase** from $438 million in the same period of 2021. This growth was primarily fueled by its mining pool business, which contributed $450 million, accounting for 91.5% of total revenue**.
While impressive in scale, the mining pool segment operates on thin margins. The associated cost of revenue reached $448 million, largely due to payouts distributed to pool participants. This narrow margin highlights the competitive and capital-intensive nature of pool operations in the crypto mining ecosystem.
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Self-Mining Operations and Asset Management
Beyond pool services, Bit Mining maintains a diversified portfolio including self-operated mining, data center operations, and mining hardware development.
During the reporting period:
- The company mined 10,318 ETH using its Ethereum-focused mining rigs.
- It also produced 263 BTC from Bitcoin mining activities.
- Revenue directly attributed to self-mining operations totaled $37.8 million.
However, a critical shift occurred after the reporting period: Ethereum’s transition to Proof-of-Stake (PoS) on September 15, 2022. This upgrade rendered all Ethereum Proof-of-Work (PoW) mining equipment obsolete for ETH mining.
In response, Bit Mining repurposed its existing Ethereum mining rigs to mine Ethereum Classic (ETC), a PoW-based fork of Ethereum. As of mid-2022, the company reported:
- 4,296.2 GH/s of hashing power dedicated to ETC mining.
- 65.6 PH/s of Bitcoin mining capacity online.
This pivot underscores the company’s operational agility in a rapidly evolving technological landscape.
Strategic Sale of Cryptocurrency Holdings
One of the most notable revelations in the report was Bit Mining’s significant disposal of digital assets. The company ended the period holding:
- 349 BTC
- 3,325 ETH
- 53.6 million Dogecoin (DOGE)
- Various other altcoins
Given that it mined over 10,000 ETH during the first half of 2022, the drop in holdings indicates that Bit Mining sold approximately 7,000 ETH during this time — likely in response to market volatility and liquidity needs.
This strategic sale reflects a broader trend among public mining firms: converting mined assets into cash or stablecoins to cover operational costs during bear markets.
Data Center Expansion and International Relocation
Following China’s nationwide crackdown on cryptocurrency mining in 2021, Bit Mining accelerated its shift overseas. The company suspended operations at two data centers in Sichuan and relocated its infrastructure abroad.
By June 30, 2022, its Ohio-based data center in the United States was fully operational and generated $3.4 million in revenue over the six-month period. This marks a crucial step toward geographic diversification and regulatory compliance.
The U.S. expansion not only provides access to more stable energy sources but also enhances investor confidence through alignment with transparent legal frameworks.
Mining Hardware Development Through Honeycomb
In April 2021, Bit Mining acquired Honeycomb Technology, a cryptocurrency mining equipment manufacturer formerly known as Bee Computing. While the half-year report does not disclose specific revenue from hardware sales, it highlights progress in R&D:
- Successful tape-out of a 12-nanometer ASIC chip.
- Mass production of over 1,000 Litecoin (LTC)-optimized mining chips.
This vertical integration strategy positions Bit Mining to reduce dependency on third-party hardware suppliers and potentially open new revenue streams through equipment sales or leasing.
Stock Performance and NYSE Compliance Warning
Despite solid operational metrics, Bit Mining’s stock has faced severe pressure. As of September 29, 2022, its share price closed at $0.285, representing a staggering 95.36% decline year-to-date.
On August 5, 2022, the company received a deficiency notice from the New York Stock Exchange (NYSE) due to its average closing price falling below $1 per share over 30 consecutive trading days — violating NYSE’s continued listing standards.
However, Bit Mining was granted a six-month cure period to regain compliance. According to Danie Zheng, Vice President of Bit Mining, the downturn is largely attributable to broader market conditions rather than internal mismanagement.
“The entire industry — and frankly most sectors — have been impacted over the past year,” Zheng noted. “But this notice does not affect our day-to-day operations or stock trading. We are confident we can address the pricing requirement in time.”
Shareholder Landscape Evolution
Ownership structure changes signal growing institutional interest despite market headwinds.
Key developments include:
- Zhiguangxin Holding Co. (Beijing智广芯) became the largest shareholder in July 2022 after acquiring full control of Tsinghua Unigroup.
- Sichuan Development holds 14.01 million shares; Sequoia Capital China holds 3.5 million — both long-term investors since the company’s early days as 500.com.
- Armistice Capital LLC significantly increased its stake by purchasing over 5.1 million shares in Q2 2022, surpassing Sequoia as the third-largest shareholder.
Additional small-scale增持 (buying) observed from major financial institutions including:
- Susquehanna International Group (SIG): +56,300 shares
- Invesco Capital: +54,900 shares
- UBS Asset Management: +22,500 shares
These moves suggest that some institutional investors view Bit Mining as undervalued amid the crypto winter.
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Frequently Asked Questions (FAQ)
What caused Bit Mining’s net loss to double in H1 2022?
Despite revenue growth, Bit Mining reported a net loss of **$27 million**, up from $11.8 million in H1 2021. This increase stems from higher operational costs, depreciation of mining equipment, and unrealized losses on digital asset holdings amid falling crypto prices.
Why did Bit Mining sell 7,000 ETH?
The sale was likely a strategic liquidity move. With Ethereum transitioning to PoS and market uncertainty rising, selling mined ETH allowed Bit Mining to secure cash flow for ongoing operations and debt management.
Can Bit Mining avoid delisting from the NYSE?
Yes — the company has a six-month grace period to raise its average closing price above $1. Strategies may include reverse stock splits, share buybacks, or operational improvements to boost investor sentiment.
Is Bit Mining still involved in Ethereum mining?
Not directly. After Ethereum’s shift to PoS, Bit Mining redirected its former ETH mining rigs to mine Ethereum Classic (ETC) instead, preserving hardware utility.
How has Bit Mining adapted after China’s mining ban?
The company relocated its data centers overseas — primarily to Ohio, USA — ensuring uninterrupted operations under clearer regulatory environments while maintaining global hash rate competitiveness.
Does Bit Mining manufacture its own miners?
Yes — through its subsidiary Honeycomb Technology, it has developed proprietary ASIC chips and produced Litecoin-optimized mining hardware, marking a push toward vertical integration.
Bit Mining’s half-year report paints a picture of resilience amid adversity. While macroeconomic pressures and technological shifts have taken a toll on its valuation, the company continues to adapt through strategic pivots in mining focus, international expansion, and hardware innovation.
As the crypto market stabilizes in 2025, Bit Mining’s ability to maintain operational efficiency and regain exchange compliance will be key indicators of long-term viability.
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