BIT Hit: Stock Plunges on Dismal Loss

Shares of BIT Mining Ltd. BTCM took a significant hit in extended trading on Thursday, declining by 8% after the company’s latest financial report for the first half of the year failed to meet market expectations.

BTCM’s stock price is pulling back after a recent rise. Track its performance here.

Revenue Declines Sharply, Expenses Increase

For the six-month period ending June 30th, the company announced a loss of $0.87 per American Depositary Share (ADS). This figure is notably worse than the $0.05 loss that analysts had projected. Each ADS represents ownership of 100 Class A ordinary shares in the business.

Revenues plummeted by 43% compared to the same period last year, reaching $19.4 million. Simultaneously, operational expenses and costs increased by 12%.

BIT Mining cited the primary reasons for the revenue decrease as the growing difficulty of mining digital currencies and the temporary suspension of mining equipment due to fluctuations in the values of Dogecoin DOGE/USD and Litecoin LTC/USD during April and May.

The company’s report indicated that it holds approximately $3.6 million in cryptocurrency holdings, encompassing 7.3 BTC, 808 Ethereum ETH/USD and 1.8 million DOGE.

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Stock Performance: Bit Mining’s stock fell by 8.01% in after-hours trading, following an 11.78% decrease to $3.370 at market close. Prior to this, the stock had risen by nearly 30% over the course of the week.

Currently, the stock scores favorably on Momentum and Value metrics. Check out Benzinga Edge Stock Rankings to see how it measures up against other stocks in the cryptocurrency mining sector.