An Undervalued Opportunity in Bitcoin Mining

Maybe that’s not a super sexy title, but we’re going to be blunt here; the time to get in on one of the biggest, publicly listed Bitcoin miners in the world is NOW. Bit Digital (Nasdaq: BTBT) is currently an overperforming, undervalued opportunity, and they have consistently added more computing power to their Queen’s Navy fleet of miners. With solid audited financials and projections, Bit Digital is an excellent investment for those looking to get in on crypto mining. 

 

 

A Quick Bit

Potentially Undervalued – We believe that Bit Digital is worth more than it’s trading at. Period. When compared to peers like Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT), Bit Digital has a significantly higher current hash rate (more on that in a bit), yet Bit Digital is currently traded at a lower market cap. Basically, Bit Digital is in a stronger position to collect bitcoins while being traded for less money, making them an excellent value play. 

Grow Baby Grow! – Bit Digital is relatively young, they only started mining in February of 2020, so there isn’t an overly long history to compare financials. But the mere acceleration of their growth is impressive. In all of 2020 they earned 1,510 bitcoins, compared to 1,013 earned in Q1 of 2021. And they’ve continued to grow. They’ve added miners steadily, with an addition of 4,871 units between April 1st and May 6th 2021. The direction of Bit Digital is clearly moving up.

North American Capacity – We’re gonna hit you with some quick math; Bit Digital earned 1,013 bitcoins for their mining activities in Q1 2021. This number fell to 562 in Q2 as many of their miners were in transit from China to North America, but we expect it to return to and even exceed previous levels as more miners come back online. Bit Digital has accelerated their migration program, bringing even more miners to North America from China.

Profiting from China’s Bitcoin Ban – In addition to shipping their own miners from China to North America, Bit Digital is taking advantage of China’s recent bitcoin ban by acquiring new miners inexpensively at spot price on the Chinese market. These miners will be shipped to the US and Canada and added to Bit Digital’s existing fleet.

Upside Potential – While the value of Bitcoin isn’t the only thing that makes Bit Digital attractive, it doesn’t hurt. As the value of Bitcoin rises, Bit Digital can ride that wave. We’ve seen it before in commodities like gold and oil, and we’re seeing it happen now with crypto. 

Clean Crypto – One criticism of bitcoin mining is that it uses quite a lot of power. In many cases, from fossil fuels. Bit Digital is taking a conscious approach to their utilities, and a large chunk of their wattage is generated with renewable or carbon-free methods. By taking a more environmentally friendly stance, Bit Digital will be able to grow their operations and leave a smaller carbon footprint. 

 

The Digital Gold Rush

It’s almost impossible to avoid comparing the current crypto craze to the California Gold Rush. It makes sense; tons of people are making and losing fortunes in crypto and its surrounding industries, the entire topic is shrouded in romanticism, and one can’t help but wonder if they should try to get in on the action. 

Bit Digital (Nasdaq:BTBT) is a bitcoin mining company, making real strides in the space. In just a little over a year, they have become one of the biggest miners in the world. They have (as of this writing) acquired 45,736 miners, achieved a hash rate of 2,574 Ph/s, and mined 2,523 bitcoins. Their Q1 2021 net income was $35.79 million and earnings per share were $0.74 for the first quarter, compared with a net loss of $3.85 million and a loss per share of $0.25 for the same period last year. That’s a huge amount of growth in quite a short period of time, and we think that will only accelerate as they continue to expand. 

 

A Bit About Mining 

For those not 100% in the know (don’t worry, you’re not alone) mining for bitcoins is a relatively straightforward process. Here’s the investopedia definition, “Bitcoin mining is the process by which new bitcoins are entered into circulation, but it is also a critical component of the maintenance and development of the blockchain ledger. It is performed using very sophisticated computers that solve extremely complex computational math problems.” Basically, a bitcoin miner solves a complex equation and gets a bitcoin in return for the trouble. Simple enough, right?

It’s kind of like traditional mining, in the sense that it requires a great deal of effort and capital to extract value. One needs equipment, workers, and a decent amount of luck to find success. But this is the age of computers, so where it differs from traditional mining is in the discovery of resources. If one were mining for gold or oil, they could expect to invest a great deal of time into actually finding it. This is where mining for bitcoins becomes, in some ways, easier than mining for minerals. 

Miners know where the bitcoins are, and they know how to get to them. It’s as if all the gold in the world was in one place, and you just needed the biggest, fastest drill to get to it first. So crypto miners like Bit Digital are busy building the best drills they possibly can, to maximize their ability to solve equations for the blockchain, thereby winning bitcoins. 

This is why hash rate is so important. A network’s hash rate represents the amount of problems (hashes) they can solve per second. You’ll usually see it measured in petahashes (PH/s) or exahashes (EH/s). One exahash is 1,000 petahashes. The higher the hash rate, the more likely that a miner will solve a given problem and be awarded bitcoin. The bigger and faster the drill, the easier it is to reach your “gold”. 

 

Leading the Charge for Sustainability 

As highlighted in a recent (July 1, 2021) Bloomberg piece, Bit Digital is going to great lengths to transform the way they use energy, mitigating the negatives associated with powering Bitcoin mining operations. 

According to the CFO and Director Erke Huang, Bit Digital is currently operating using 55% renewable energy sources. Their ultimate goal is to reach 100%, and as signatories of the Crypto Climate Accord, “Bit Digital has committed to achieve net-zero emissions from the electricity consumption associated with all of its respective crypto-related operations by 2030 and to report progress toward this net-zero emissions target using best industry practices.” – from the press release. 

“To date, Bit Digital has taken major steps to ensure sustainability of our mining operations, and by signing the CCA we have emphasized our commitment to decarbonization,” said Bryan Bullett, CEO of Bit Digital. “As of our most recent quarterly reporting, our fleet was running on a majority carbon-free power. We also participate in sustainability initiatives such as a previously announced demand-response energy curtailment program. Going forward, we intend to expand our use of clean power as we scale.”

Bit Digital is paving the way for other mining operations to follow suit, demonstrating how they utilize energy that would otherwise go to waste (called “stranded” energy), and are emphasizing solar and wind power whenever possible. 

As more people begin to look at Bitcoin the way we used to look at gold, i.e. as a store of value with limited supply, Bit Digital is hopeful that they can be a part of minimizing the environmental cost of obtaining such a commodity. Based on the direction they’re headed, we think their hope is well-founded.

 

Building A Bigger Drill

Here’s where it starts to get interesting, and why we’re so hot on Bit Digital. They have acquired almost 46k mining computers, achieving a hash rate of 2.57 EH/s. To put that in perspective, the entire Bitcoin mining network is estimated at 161 EH/s, meaning Bit Digital represents a little over 1% of the entire mining network’s hash rate. 

Much of Bit Digital’s recent efforts have been geared toward acquiring more computing power, purchasing 4,871 new mining computers earlier this year. It looks like the plan is to continue adding miners, via purchasing on the spot market to expedite delivery. So far it’s been a good strategy, as Bit Digital has maintained a superior current hash rate to peers like Riot Blockchain and Marathon Digital Holdings. 

And here we want to point out, again, Bit Digital appears undervalued. From a pure numbers perspective, they are mining more bitcoins, faster, with a lower market cap. Bit Digital has a hash rate almost DOUBLE that of Riot Blockchain (2.5 EH/s v. 1.3 EH/s). That suggests Bit Digital can expect to earn significantly more bitcoins in the immediate term than Riot Blockchain is expected to, yet Bit Digital’s market cap is currently 429M compared to Riot’s 2.3B. 

If you were waiting for a sign to get in on a crypto miner:

 

Horsepower Isn’t Everything

The raw computational power is definitely a big piece of the crypto mining business, but there are other factors to consider. One of the big variables in this industry is utility cost. Mining digital tokens takes considerable wattage, and finding ways to minimize (and pay for) that cost are key to long-term success. 

Bit Digital uses third party hosting, a pretty standard strategy for crypto miners. Basically, Bit Digital owns the machines doing the computations, and a different company physically stores them and gives them a power source. This ensures that there is a consistent power supply so that mining can be optimally maintained. The cost for utilities and storage is more manageable and scalable when outsourced the way Bit Digital does it.  

Doing their hosting this way also allows Bit Digital to maximize their sustainability. A growing concern among some populations is the carbon cost of crypto mining, and by choosing the right partners Bit Digital is mitigating those concerns. 

Migration to Exclusive North American Production

Following China’s recent ban on Bitcoin, Bit Digital has accelerated their migration efforts, planning on having the majority of their miners operational in the US and Canada by the end of the year. 

According to the company: In October 2020, we commenced our strategy of migrating our mining assets from China to North America. Following the recent announcement of the Chinese government’s decision to ban bitcoin mining, we immediately suspended our remaining mining operations in mainland China, effective June 21, 2021. 

Accordingly, we further accelerated our migration strategy that had been ongoing since October 2020. As a result, a greater proportion of our fleet was offline than in the prior quarter, due to more miners being in transit to or awaiting installation in North America. Prior to shipment, we generally refurbish our miners in a facility in Shenzhen, China, to ensure their resilience during transport and operability upon arrival. Miners are securely packaged and shipped by air or by sea, depending on market conditions.

During April through June 2021, we shipped 14,500 miners to the United States. We expect to complete the migration of all, or the majority, of our remaining China-based miners to North America in the third quarter of 2021, although we anticipate the possibility that certain miner shipments may arrive in US early in the fourth quarter of 2021.

Bit Digital is also taking advantage of the Chinese bitcoin ban by acquiring additional chinese miners at spot prices and shipping them back to North America.

Look for dramatically increased Bitcoin production as these miners arrive in North America and come back online.

 

Bit Digital Expands North American Footprint with New 40MW Agreement with Compute North

NEW YORK, — Compute North and Bit Digital, Inc. (Nasdaq: BTBT), are pleased to announce an additional 40MW hosting agreement for the expansion of Bit Digital’s bitcoin mining operations in North America, with an important sustainability feature. As part of the agreement, Bit Digital, one of the largest US-listed bitcoin miners by operating hash rate, will deploy an additional 13,000 ASIC miners at Compute North facilities in the United States. The move accelerates Bit Digital’s expansion strategy in North America, and highlights its focus on sustainability.

Compute North, an industry leader in economical, large-scale computing and cryptocurrency mining infrastructure, is responding to growing demand for sustainable solutions for the grid, rather than being a mere consumer of power. To enable intermittent supply from wind and solar, such sources must be balanced with intermittent energy demand. Cryptocurrency mining, which may be curtailed or taken offline in periods of low supply or peak demand, presents an ideal counterpart for renewables.

To activate this potential, Compute North has entered into demand response programs with its energy suppliers. Compute North’s load is fully interruptible 24×7, and may be rapidly curtailed to dispatch power to mission critical customers, such as hospitals. 

“Compute North serves an important role in providing low-cost computing for customers like Bit Digital, while filling an important need for our energy partners,” commented PJ Lee, co-founder and Chairman at Compute North. “The company’s pioneering TIER 0™ data center design creates cost efficiencies and the flexibility to throttle power demand at each facility as required, making it a critical partner to the overall stability of local power grids as they bring more renewables online.”

This type of strategy is exactly what Bit Digital was seeking in a hosting provider. While focused on rapid growth and shareholder value, the company also aims to play a leadership role in the transition to sustainable energy infrastructure. Bit Digital’s participation in Compute North’s demand response program gives the grid more flexibility to incorporate intermittent supply from wind and solar.

 

Bit Digital is focused on growing our mining operations, while selecting strategic partners that enable the transition to sustainable bitcoin mining,” said Bryan Bullett, CEO of Bit Digital. “On the energy supply side, we are evaluating new renewable sources to complement our existing renewables-based mining. On the demand side, we are embracing demand response programs like Compute North’s. We refer to this as “Mining 2.0″ – a multi-pronged strategy to activate our ability to dynamically manage power usage, both to manage costs, and to accelerate adoption of renewable energy sources for mining, and for the grid generally.

 

Bit Digital’s next phase of hardware deployment with Compute North has already begun, and is expected to be completed this summer.

Find out more at Bit Digital 

 

Press Releases

 

In the News

 

Bit by Bit

Here’s the TL;DR version of this whole thing; if you wanted to buy one bitcoin, it would cost you $40.9K. Bit Digital’s Q1 2021 gross margin was around 72% before depreciation and amortization expense, and they stand to earn over 4 thousand bitcoins this year alone. The math speaks for itself. 

Bit Digital is intelligently acquiring thousands of miners to maximize their hash rate, and selling just enough of their Bitcoin holdings to pay for operation costs. It may not be long before this undervalued mining gem is trading at a market value commensurate with their peers, so don’t wait around if you want a bit of Bit Digital. 

 

Management

Bryan Bullett

Chief Executive Officer

From August 2016 to June 2019, Mr. Bullett served as Executive Vice President for US affiliates of the company now known as E&P Financial Group. From August 2012 to July 2016, Mr. Bullett served as a Senior Vice President at FBR & Co. During 2011 and 2012, Mr. Bullett served as a Vice President at Keefe, Bruyette & Woods. During the years 2006 through 2010, Mr. Bullett served as a Vice President and as an Associate at Bank of America Merrill Lynch (formerly Banc of America Securities). During the years 2004 through 2006, Mr. Bullett served as an Associate at Deutsche Bank Securities. Prior thereto, Mr. Bullett served as an early or founding employee of several technology and/or media-related startup companies. Mr. Bullett received a bachelor’s degree from Brown University and an MBA from Columbia Business School and holds Series 7 and Series 63 licenses.

 

Erke Huang

Chief Financial Officer and Director

Co-Founder and advisor of Long Soar Technology Limited since August 2019 Founder and CEO of Bitotem Investment Limited since May 2018 Investment Manager of Guojin Capital from June 2016 to May 2018 Engineering Analyst of Crowncastle International from March 2013 to November 2014 Master’s degree in Civil & Environmental Engineering from Carnegie Mellon University Bachler’s degree in Environmental Engineering from Southwest Jiaotong University.

 

Sam Tabar

Chief Strategy Officer

Mr. Tabar served as the Co-Founder and Chief Strategy Officer of Fluidity from April 2017 to June 2020. Prior to this, he held the title of Partner at FullCycle Fund which he served from December 2015 to April 2017. Prior thereto, he served as Director and Head of Capital Strategy (Asia Pacific Region) for Bank of America Merrill Lynch from February 2010 to April 2011. Prior to this, he was Co-Head of Marketing at Sparx Group from January 2004 to 2010. Prior thereto, he was an associate at Skadden, Arps, Meagher, Flom LLP & Affiliates from September 2001 to January 2004. Mr. Tabar received his Bachelor of Arts from Oxford University in 2000, and received his Master of Law (LL.M.) from Columbia University School of Law in 2001. He was associate editor of the Columbia Law Business Law Journal in 2000, and is a current member of the New York State Bar Association.

 

Brock Pierce

Advisor

Brock Pierce is an entrepreneur, artist, venture capitalist, and philanthropist with an extensive track record of founding, advising and investing in disruptive businesses. He’s credited with pioneering the market for digital assets and has raised more than $5B for companies he has founded. Pierce is Chairman of the Bitcoin Foundation and the co-founder of EOS Alliance, Block.one, Blockchain Capital, Tether, and Mastercoin (first ICO). Piece has been involved in Bitcoin mining since its genesis days, acquiring a significant portion of the first batch of Avalons and ran KNC’s China operation, one of the world’s first large scale mining operations. He was also a seed investor in BitFury through Blockchain Capital. He also established the largest Bitcoin mining operation in Washington State in the industry’s early days. Pierce has lectured at some of the nation’s most prestigious institutions, the Milken Institute Global Conference, International World Congress, and has been featured by the New York Times, Wall Street Journal and Fortune. Pierce was on the first-ever Forbes List for the “Richest People in Cryptocurrency” and was an Independent Party candidate for President of the United States in 2020.

DISCLAIMER

Who are we and what do we do? We are paid advertisers, also known as stock touts or stock promoters, who disseminate favorable information (the “Information”) about publicly traded companies (the “Profiled Issuers”). How is the Information published? We publish the Information on our Website, in newsletters, audio services, live interviews, featured “research” reports, on message boards and in email communications for specific time periods that are agreed upon between us and the Profiled Issuer or third party paying us. Our publication of the Information is known as a “Campaign”. Will everyone receive the Information at the same time? No. The Information may be sent to potential investors at different times that are minutes, hours, days or even weeks apart. How is a potential investor impacted if he receives the Information later than other investors? Typically, the trading volume and price of a Profiled Issuer’s securities increases after the Information is provided to the first group of investors. Therefore, the later an investor receives the Information, the more likely it is that he will suffer increased trading losses if he purchases the securities of a Profiled Issuer. What will happen to the shares that we hold during the Campaign? We will sell the shares we hold while we tell investors to purchase during the Campaign. What will happen when the Campaign ends? Most, if not all, of the Profiled Issuers are penny stocks that are illiquid and whose securities are subject to wide fluctuations in trading price and volume. During the Campaign the trading volume and price of the securities of each Profiled Issuer will likely increase significantly. When the Campaign ends, the volume and price of the Profiled Issuer will likely decrease dramatically. As a result, investors who purchase during the Campaign and hold shares of the Profiled Issuer when the Campaign ends will probably lose most, if not all, of their investment. Why do we publish only favorable Information? We only publish favorable information because we are compensated to publish only favorable information. Why don’t we publish negative Information? We don’t publish negative information because we are not paid to publish negative information. We are paid to publish only favorable information. Is the Information complete, accurate, truthful or reliable? No. The Information is a snapshot that provides only positive information about the Profiled Issuers. The Information consists of only positive content. We do not and will not publish any negative information about the Profiled Issuers; accordingly, investors should consider the Information to be one-sided and not balanced, complete, accurate, truthful or reliable. What we do not do? We do not publish negative information about the Profiled Issuers. We do not verify or confirm any portion of the Information. We do not conduct any due diligence, nor do we research any aspect of the Information including the completeness, accuracy, truthfulness or reliability of the Information. We do not review the Profiled Issuers’ financial condition, operations, business model, management or risks involved in the Profiled Issuer’s business or an investment in a Profiled Issuer’s securities. Where does the Information come from? The Information is provided to us by the Profiled Issuers and/or the person who hires us. We may also obtain the Information from publicly available sources such as the OTC Markets, Google, NASDAQ, NYSE, the Securities and Exchange Commission’s Edgar database or other available public sources. If we say we make “stock picks,” are those picks our own? No, they are not. We are compensated to advertise the securities we are told to advertise. What will happen if an investor relies on the Information? If an investor relies on the Information in making an investment decision it is highly probable that the investor will lose most, if not all, of his or her investment. Investors should not rely on the Information to make an investment decision. Who pays us to publish the Information? The source of our compensation varies depending upon the particular circumstances of the Campaign. We are compensated by the Profiled Issuers, third party shareholders and other parties related to the Profiled Issuers such as officers and/or directors who will derive a financial or other benefit from an increase in the trading price and/or volume of a Profiled Issuer’s securities. The nature and amount of compensation we receive for publishing the Information about each Profiled Issuer and our ownership of each Profiled Issuer is set forth below under the heading captioned, “What we are compensated”. What warranties do we make about the Information? None. We make no warranty or representation about the Information, including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable and as such, your use of the Information is at your own risk. The Information is provided as is without limitation. What we are not. We are not and do not act in the capacity of any of the following; as such, you should not construe our activities as involving any of the following:
  • An independent adviser or consultant;
  • A fortune teller;
  • An investment adviser or an entity engaging in activities that would be deemed to be providing investment advice that requires registration either at the federal or state level;
  • A broker-dealer or an individual acting in the capacity of a registered representative or broker;
  • A stock picker;
  • A securities trading expert;
  • A securities researcher or analyst;
  • A financial planner or one who engages in financial planning;
  • A provider of stock recommendations;
  • A provider of advice about buy, sell or hold recommendations as to specific securities; or
  • An agent offering or securities for sale or soliciting their purchase.
Are risks in this disclaimer the only risks investors should be aware of? No. There are numerous risks associated with each Profiled Issuer and investors should undertake a full review of each Profiled Issuer with the assistance of their financial, legal, and tax advisers prior to purchasing the securities of any Profiled Issuer. What conflicts of interest do we have in publishing the Information? We are not objective or independent and have multiple conflicts of interest. The Profiled Issuers and parties hiring us have conflicts of interest. What will happen to the shares that we hold during the Campaign? We will sell the shares we hold while we tell investors to purchase. Our publication of the Information involves actual and material conflicts of interest including but not limited to the following:
  • We receive monetary and/or securities compensation in exchange for publishing the (favorable) Information about the Profiled Issuers;
  • We do not publish any negative information whatsoever about the Profiled Issuers;
  • We may own a Profiled Issuer’s securities that we acquired from the Profiled Issuer, third parties or from our own open market purchases before, during or after the Campaign and we may sell these securities during the Campaign while publishing the (favorable) information that instructs investors to purchase. Our selling of a Profiled Issuer’s securities will likely cause investors to suffer losses;
  • A short time after we acquire a Profiled Issuer’s securities, we may publish the (favorable) Information about the Profiled Issuer advising others, including you, to purchase; and while doing so, we may sell the Profiled Issuer’s securities we acquired during our public dissemination of the Information causing us to profit while you suffer a loss;
  • Parties holding a Profiled Issuer’s securities, including those who engage our services and/or compensate us, will sell their shares of the Profiled Issuer while we are publishing the (favorable) Information.
Who is responsible if an investor relies on the Information? The investor. We are not responsible or liable for any person’s use of the Information or any success or failure that is directly or indirectly related to such person’s use of the Information because we have specifically stated that the information is not reliable and should not be relied upon for any purpose. We are not responsible for omissions or errors in the Information, and we are not responsible for actions taken by any person who relies upon the Information. What do we urge potential investors to do? We urge Investors to conduct their own in-depth investigation of the Profiled Issuers with the assistance of their legal, tax and investment advisers. An investor’s review of the Information should include but not be limited to the Profiled Issuer’s financial condition, operations, management, products or services, trends in the industry and risks that may be material to the profiled Issuer’s business and other information he and his advisers deem material to an investment decision. An investor’s review should include, but not be limited to a review of available public sources and information received directly from the Profiled Issuers or from websites such as Google, OTC Markets, NASDAQ, NYSE, www.sec.gov or other available public sources. Why is this Disclaimer being provided? We are providing you with this disclaimer because we are publishing advertisements about penny stocks. Because we are paid to disseminate the Information to the public about securities, we are required by the securities laws including Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, and Section 17(b) of the Securities Act of 1933, as amended (the “Securities Act”), to specifically disclose our compensation as well as other important information, This information includes that we may hold, as well as purchase and sell, the securities of a Profiled Issuer before, during and after we publish favorable Information about the Profiled Issuer. We may urge investors to purchase the securities of a Profiled Issuer while we sell our own shares. The anti-fraud provisions of federal and state securities laws require us to inform you that we may engage in buying and selling of Profiled Issuer’s securities before, during and after the Campaigns. What are other risks that investors should be aware of? Any investment in the Profiled Issuers involves a high degree of risk and uncertainty. The securities may be subject to extreme volume and price volatility, especially during the Campaigns. Favorable past performance of a Profiled Issuer does not guarantee future results. If you purchase the securities of the Profiled Issuers, you should be prepared to lose your entire investment. Some of the risks involved in purchasing securities of the Profiled Issuers include, but are not limited to the risks stated below.
  • We do not endorse, independently verify or assert the truthfulness, completeness, accuracy or reliability of the Information. We conduct no due diligence or investigation whatsoever of the Information or the Profiled Issuers and we do not receive any verification from the Profiled Issuer regarding the Information we disseminate.
  • If we publish any percentage gain of a Profiled Issuer from the previous day close in the Information, it is not and should not be construed as an indication that the future stock price or future operational results will reflect gains or otherwise prove to be advantageous to your investment.
  • The Information may contain statements asserting that a Profiled Issuer’s stock price has increased over a certain period of time which may reflect an arbitrary period of time, and is not predictive or of any analytical quality; as such, you should not rely upon the (favorable) Information in your analysis of the present or future potential of a Profiled Issuer or its securities.
  • The Information should not be interpreted in any way, shape, form or manner whatsoever as an indication of the Profiled Issuer’s future stock price or future financial performance.
  • You may encounter difficulties determining what, if any, portions of the Information are material or non-material, making it all the more imperative that you conduct your own independent investigation of the Profiled Issuer and its securities with the assistance of your legal, tax and financial advisor.
  • We or other stock promoters may receive free trading shares as compensation or we may acquire such shares in open market transactions before and during the Campaigns, and we may sell the shares we acquire at any time, even during the Campaigns while publishing the Favorable Information. When we sell the shares of the Profiled Issuers that we hold, the price at which investors can sell their shares will dramatically decrease and will likely cause investors to suffer trading losses.
  • We may sell securities of the Profiled Issuers for less than target prices set forth in the Information, and we may profit by selling our securities during the Campaigns while investors encounter losses.
  • When we acquire, purchase or sell the securities of the Profiled Issuers, it may (a) cause significant volatility in the Profiled Issuer’s securities; (b) cause temporary but unrealistic increases in volume and price of the Profiled Issuer’s securities; (c) if selling, cause the Profiled Issuer’s stock price to decline dramatically; and (d) permit us to make substantial profits while investors who purchase during the Campaign experience significant losses.
  • The securities of the Profiled Issuers are high risk, unstable, unpredictable and illiquid which may make it difficult for investors to sell their securities of the Profiled Issuers.
  • If we are compensated in improperly free trading securities of the Profiled Issuers, either directly or indirectly from persons who claim to be non-affiliates of such Profiled Issuer, we and the Profiled Issuer or third party could be subject to SEC Enforcement Action, including allegations of an illegal distribution in violation of Section 5(a) and 5(c) of the Securities Act.
  • We may hire third party service providers and stock promoters to electronically disseminate live news regarding the Profiled Issuers, yet we have no control over the content of and do not verify the information that the Profiled Issuers and/or third party service providers publish. These third party service providers are likely compensated for providing positive information about the Issuer and fail to disclose their compensation to you.
If a Profiled Issuer is an SEC reporting company, it could be delinquent (not current) in its periodic reporting obligations (i.e., in its quarterly and annual reports), or if it is an OTC Markets Pink Sheet quoted company, it may be delinquent in its Pink Sheet reporting obligations, which may result in OTC Markets posting a negative legend pertaining to the Profiled Issuer at www.otcmarkets.com, as follows: (i) “Limited Information” for companies with financial reporting problems, economic distress, or that are unwilling to file required reports with the Pink Sheets; (ii) “No Information,” which characterizes companies that are unable or unwilling to provide any disclosure to the public markets, to the SEC or the Pink Sheets; and (iii) “Caveat Emptor,” signifying buyers should be aware that there is a public interest concern associated with a company’s illegal spam campaign, questionable stock promotion, known investigation of a company’s fraudulent activity or its insiders, regulatory suspensions or disruptive corporate actions. If the Information states that a Profiled Issuer’s securities are consistent with the future economic trends or even if your independent research indicates that, you should be aware that economic trends have their own limitations, including: (a) that economic trends or predictions may be speculative; (b) consumers, producers, investors, borrowers, lenders and government may react in unforeseen ways and be affected by behavioral biases that we are unable to predict; (c) human and social factors may outweigh future economic trends that we state may or will occur; (d) clear cut economic predictions have their limitations in that they do not account for the fundamental uncertainty in economic life, as well as ordinary life; (e) economic trends may be disrupted by sudden jumps, disruptions or other factors that are not accounted for in economic trends analysis; in other words, past or present data predicting future economic trends may become irrelevant in light of new circumstances and situations in which uncertainty becomes reality rather than predicted economic outcome; or (f) if the trend predicted involves a single result, it ignores other scenarios that may be crucial to make a decision in the event of unknown contingencies. The Information is presented only as a brief snapshot of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities. You should consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.govwww.sec.gov, www.otcmarkets.com or other electronic media, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the OTCMarkets.com; (c) obtaining and reviewing publicly available information contained in commonly known search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.org. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and the OTC Markets and/or have negative legends and designations at otcmarkets.com. What we were paid to advertise the Profiled Issuers. The details of our compensation and the period of the Campaign is set forth below.
  • Name of Issuer & Ticker Symbol - Bit Digital (BTBT)
  • Amount & Form of Compensation - $1,000,000 in Common Stock
  • Who Paid for the Campaign & Position with Company if any - Bit Digital (BTBT)
  • Period of Campaign - 5/10/2021 - 5/10/2022
What securities of the Profiled Issuers do we hold? The positions we hold of the Profiled Issuer are set forth below. We plan to sell these securities during the Campaign.
  • Name of Issuer & Ticker Symbol - Bit Digital (BTBT)
  • Number of Shares We or our Affiliates Hold - 77,519
  • Price We Paid Per Share - $0
  • Date Issued - 4/21/2021

Related Post

Register to Download the Presentation

Go to website
Go to top