- Solid technological basis established for global upscaling now in progress
- Own wallet and new air-cooled container successfully developed
- Significant growth in sales, earnings and hash rate
Frankfurt am Main, Germany – September 26, 2019 – Northern Bitcoin AG (XETRA: NB2, ISIN: DE000A0SMU87), one of the world leaders in sustainable Bitcoin mining, has today published its report for the first half of 2019.
The development in business in the first half of 2019 was dominated by preparations for scaling the Bitcoin mining business, as well as by the first steps towards diversification in the areas of software development and mining infrastructure. Revenue recorded by this still young and growing company in the first six months of 2019 deriving from the sale of Bitcoins was up 35.6 percent at T€ 1,490 (previous year: T€ 1,100), while aggregate performance climbed 55.7 percent to stand at T€ 1,836 (previous year: T€ 1,179).
At its base in Lefdal, the company is engaged in environmentally neutral Bitcoin mining at the highest global level harnessing surplus hydroelectric power. The company’s mining capacities in Norway were expanded during the reporting period. In the first half of 2019, Northern Bitcoin commissioned a further six mining containers, with the result that by the end of the reporting period the Lefdal Mine Datacenter was operating 21 containers with a computing power of 55 petahash per second (PH/s).
Beside the water-cooled mobile mining container, which has already successfully entered operation, together with leading partners the company has also developed an air-cooled mobile mining container, opening the way for entirely new locations in cool climates. In addition, the company’s independently developed mining pool has been further enhanced.
In the course of expanding its 360-degree Bitcoin ecosystem, during the reporting period Northern Bitcoin also began to develop its own e-wallet, dubbed “Wallace”. The first version goes live in November 2019, adding another product line to the Northern Bitcoin AG business model independent of previous business activities. It has been developed to support the simple and speedy management of virtual currencies, and combines a “mobile first approach” with a super-fast user interface. The new wallet is due to launch in Germany, with entry into the markets in other European countries scheduled to follow in stages.
As anticipated, these comprehensive preparations and development works were accompanied by higher costs. With material costs coming in at T€ 4,001 (previous year: T€ 1,771), personnel costs at T€ 464 (previous year: T€ 334) and other operating expenses at T€ 539 (previous year: T€ 391), and given the low Bitcoin exchange rate in the initial months of the year, Northern Bitcoin reported a result for the first half of 2019 of T€ -3,589 (previous year T€ -1,534).
The balance sheet total climbed from T€ 8,919 as of December 31, 2018 to T€ 9,853 at the end of the first half. Subscribed capital remained unchanged at T€ 7,442. Having secured a borrowing facility of EUR 8 million in June 2019, Northern Bitcoin AG has broadened the company’s financial options still further. This credit line which can be drawn down flexibly will be available until December 31, 2025.
For the financial year 2019 as a whole, having already commenced its upscaling, Northern Bitcoin expects to see substantial growth in sales. Looking ahead to 2020, the company is targeting significant growth in sales, earning and hash rate.
The detailed half-yearly report is available on the Northern Bitcoin AG website under the Investor Relations heading at www.northernbitcoin.com/investor-relations.