Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36206 |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | BIT Mining Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 428 South Seiberling Street |
Entity Address, City or Town | Akron |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44306 |
Entity Address, Country | US |
Entity Central Index Key | 0001517496 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Auditor Name | MaloneBailey, LLP |
Auditor Firm ID | 206 |
Auditor Location | Houston, Texas |
Business Contact | |
Entity Information | |
Contact Personnel Name | Qiang Yuan |
City Area Code | 346 |
Local Phone Number | 204-8537 |
Entity Address, Address Line One | 428 South Seiberling Street |
Entity Address, City or Town | Akron |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44306 |
Entity Address, Country | US |
Class A Ordinary shares | |
Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00005 per share |
Entity Common Stock, Shares Outstanding | 1,063,813,210 |
Class B Ordinary shares | |
Entity Information | |
Entity Common Stock, Shares Outstanding | 99 |
ADS | |
Entity Information | |
Title of 12(b) Security | American Depositary Shares, each representing hundred (100) Class A ordinary shares |
Trading Symbol | BTCM |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 5,448 | $ 17,670 |
Restricted cash | 126 | 134 |
Short-term investment | 2,360 | |
Accounts receivable | 4,120 | 737 |
Prepayments and other current assets | 8,310 | 21,525 |
Cryptocurrency assets | 14,972 | 53,190 |
Total current assets | 35,336 | 93,256 |
Non-current assets: | ||
Property and equipment, net | 27,220 | 70,199 |
Intangible assets, net | 3,314 | 71,931 |
Deposits | 2,387 | 99 |
Long-term investments | 8,049 | 10,050 |
Right-of-use assets | 4,135 | 6,166 |
Amounts due from related party - non-current | 11,504 | |
Long-term prepayments and other non-current assets | 6,363 | 4,455 |
Goodwill | 26,569 | |
Total non-current assets | 51,468 | 200,973 |
TOTAL ASSETS | 86,804 | 294,229 |
Current liabilities: | ||
Accounts payable | 23,425 | 54,438 |
Amounts due to related parties | 0 | 8,021 |
Accrued payroll and welfare payable | 819 | 489 |
Accrued expenses and other current liabilities | 5,155 | 18,738 |
Operating lease liabilities - current | 1,367 | 2,213 |
Income tax payable | 73 | 498 |
Total current liabilities | 30,839 | 84,397 |
Non-current liabilities: | ||
Operating lease liabilities - non-current | 2,837 | 4,569 |
Total non-current liabilities | 2,837 | 4,569 |
TOTAL LIABILITIES | 33,676 | 88,966 |
Shareholders' equity: | ||
Additional paid-in capital | 620,807 | 590,567 |
Treasury shares | (21,604) | (21,604) |
Accumulated deficit and statutory reserve | (542,169) | (386,754) |
Accumulated other comprehensive loss | (3,960) | (2,355) |
Total BIT Mining Limited shareholders' equity | 53,128 | 179,890 |
Noncontrolling interests | 25,373 | |
Total shareholders' equity | 53,128 | 205,263 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 86,804 | 294,229 |
Class A Ordinary shares | ||
Shareholders' equity: | ||
Ordinary shares, value | $ 54 | $ 36 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Ordinary shares, par value | $ 0.00005 | ||
Ordinary shares, shares authorized | 2,000,000,000 | 3,508,990 | |
Class A Ordinary shares | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 1,599,935,000 | 1,599,935,000 | |
Ordinary shares, shares issued | 1,063,813,210 | 710,078,070 | 430,127,692 |
Ordinary shares, shares outstanding | 1,063,813,210 | 710,078,070 | |
Class B Ordinary shares | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 400,000,000 | 400,000,000 | |
Ordinary shares, shares issued | 99 | 99 | 99 |
Ordinary shares, shares outstanding | 99 | 99 | 99 |
Class A preference shares | |||
Preference Shares, Par Value | $ 0.00005 | $ 0.00005 | |
Preference Shares, Shares Authorized | 65,000 | 65,000 | |
Preference Shares, Shares Issued | 65,000 | 65,000 | |
Preference Shares, Shares Outstanding | 65,000 | 65,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Revenues | $ 650,227 | $ 1,328,876 | $ 2,167 | |
Operating costs and expenses: | ||||
Cost of revenue | (660,214) | (1,323,415) | (2,016) | |
Sales and marketing expenses | (633) | (951) | (1,148) | |
General and administrative expenses | (22,786) | (25,463) | (14,330) | |
Service development expenses | (3,665) | (3,155) | (1,941) | |
Total operating costs and expenses | (687,298) | (1,352,984) | (19,435) | |
Other operating income | 590 | 300 | 534 | |
Government grant | 29 | 21 | ||
Other operating expenses | (5,477) | (14,686) | (273) | |
Net gain on disposal of cryptocurrency assets | 8,360 | 11,392 | ||
Impairment of cryptocurrency assets | (18,435) | (38,319) | 0 | |
Changes in fair value of derivative instrument | 3,696 | |||
Changes in fair value of contingent considerations | 1,247 | 13,936 | ||
Impairment of property and equipment | (35,224) | (22,392) | ||
Impairment of intangible assets | (56,094) | (56) | 0 | |
Impairment of goodwill | (26,569) | |||
Operating loss from continuing operations | (168,644) | (70,237) | (16,986) | |
Other income, net | 9,031 | 594 | 42 | |
Interest income | 150 | 56 | 242 | |
Interest expense | (218) | (775) | ||
(Loss) gain from equity method investments | 164 | (1,184) | (1,865) | |
Gain on previously held equity interest | 5,500 | |||
Impairment of long-term investments | (2,250) | 0 | (4,787) | |
Gain from disposal of subsidiaries | 3,340 | 234 | ||
Loss before income tax from continuing operations | (158,427) | (65,812) | (23,354) | |
Income tax benefits | 359 | 30 | ||
Net loss from continuing operations | (158,427) | (65,453) | (23,324) | |
Loss from discontinued operations, net of applicable income taxes | (2,224) | (8,779) | ||
Loss on disposal of discontinued operations, net of applicable income taxes | (6,697) | |||
Net loss from discontinued operations, net of applicable income taxes | (8,921) | (8,779) | ||
Net loss | (158,427) | (74,374) | (32,103) | |
Less: Net loss attributable to noncontrolling interests from continuing operations | (3,012) | (11,792) | ||
Less: Net gain (loss) attributable to noncontrolling interests from discontinued operations | (179) | 309 | ||
Less: Net (loss) income attributable to the non-controlling interest | (3,012) | (11,971) | 309 | |
Net loss attributable to BIT Mining Limited | (155,415) | (62,403) | (32,412) | |
Other comprehensive income (loss): | ||||
Share of other comprehensive (loss) income of an equity method investee | 631 | (177) | ||
Reclassification into loss from equity method investments | 131 | |||
Foreign currency translation gain (loss) | (1,735) | 2,115 | 2,317 | |
Other comprehensive income (loss), net of tax | (1,735) | 2,877 | 2,140 | |
Comprehensive loss | (160,162) | (71,497) | (29,963) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | (3,142) | (11,337) | 309 | |
Comprehensive loss attributable to BIT Mining Limited | $ (157,020) | $ (60,160) | $ (30,272) | |
Losses per share for Class A and Class B ordinary shares outstanding-Basic and Diluted: | ||||
Net loss from Continuing Operations, Per Basic Share | $ (0.18) | $ (0.09) | $ (0.05) | |
Net loss from Continuing Operations, Per Diluted Share | (0.18) | (0.09) | (0.05) | |
Net loss from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | (0.01) | (0.02) | ||
Net loss from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | (0.01) | (0.02) | ||
Net loss Per Share, Basic | (0.18) | (0.10) | (0.07) | |
Net loss Per Share, Diluted | (0.18) | (0.10) | (0.07) | |
Losses per American Depositary Share ("ADS*") (1 ADS represnents 100 Class A ordinary shares)-Basic and Diluted: | ||||
Net loss from continuing operations | [1] | (17.84) | (8.62) | (5.42) |
Net loss from discontinued operations | [1] | (1.40) | (2.11) | |
Net loss | [1] | $ (17.84) | $ (10.02) | $ (7.53) |
Weighted average number of Class A and Class B ordinary shares outstanding: | ||||
Basic | 871,036,499 | 622,337,974 | 430,011,263 | |
Diluted | 871,036,499 | 622,337,974 | 430,011,263 | |
[1]American Depositary Shares, which are traded on the NYSE. Each ADS represents one hundred Class A ordinary shares of the Company. Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, to the current ADS Ratio of 1 ADS to 100 Class A ordinary shares, effective on December 23, 2022. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flow from operating activities | |||
Net loss | $ (158,427) | $ (74,374) | $ (32,103) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Write off of remaining ROU asset and lease liability pursuant to a lease termination | (1,799) | ||
Amortization of right-of-use assets | 1,586 | 1,199 | 1,107 |
Depreciation of property and equipment | 24,050 | 15,062 | 6,328 |
Amortization of intangible assets | 9,132 | 5,293 | 318 |
Deferred tax benefit | (359) | (531) | |
Share-based compensation | 4,474 | 6,446 | 8,047 |
Losses on disposal of property and equipment | 9,804 | 211 | |
Impairment of intangible assets | 56,094 | 56 | 0 |
Impairment of goodwill | 26,569 | ||
Impairment of long-term investments | 2,250 | 4,787 | |
Impairment of cryptocurrency assets | 18,435 | 38,319 | |
Impairment of property and equipment | 35,224 | 22,392 | |
Changes in fair value of derivative instrument | (3,696) | ||
Changes in fair value of contingent considerations | (1,247) | (13,936) | |
Provision for bad debt | 1,113 | 78 | |
Loss (gain) from equity method investments | (164) | 1,184 | 1,566 |
Net gain on disposal of cryptocurrency assets | (8,360) | (11,392) | |
Non-cash other operating expense- cyberattack loss | 3,100 | ||
Gain from relief of liability | (4,426) | ||
Loss (gain) on disposal of subsidiaries and VIEs | (3,340) | 6,463 | |
Gain on previously held equity interest | (5,500) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,802) | 1,678 | |
Prepayments and other current assets | 9,807 | (2,309) | 870 |
Amounts due from related party | 56 | ||
Cryptocurrency assets | (34,178) | (20,075) | |
Deposits | 599 | ||
Other non-current assets | 34 | ||
Operating lease liabilities | (1,870) | (629) | (2,206) |
Accounts payable | (16,861) | (7,703) | |
Accrued expenses and other current liabilities | (17,285) | (2,775) | 1,966 |
Accrued payroll and welfare payable | 330 | (1,465) | 1,000 |
Long-term payables | (79) | ||
Amounts due to related parties | (4,645) | 1,325 | |
Income tax payable | (7) | (448) | |
Net cash used in operating activities | (63,561) | (34,271) | (9,807) |
Cash flows from investing activities | |||
Acquisition of property and equipment | (13,782) | (56,599) | (225) |
Disposal of subsidiaries and VIEs, net of cash received | 5,007 | (1,394) | |
Acquisition of redeemable noncontrolling interest | (2,120) | ||
Acquisition of long-term investments | (1,000) | ||
Cash paid for short-term investments | (2,360) | (12,261) | |
Proceeds From Payment Of Asset Acquisition And Business Combination | 25 | (21,913) | |
Cash received from return of time deposits | 3,421 | ||
Cash received from return of short-term investments | 12,261 | ||
Cash received from return of long-term investments | 1,424 | 301 | |
Cash received from disposal of cryptocurrency assets | 34,354 | 10,841 | |
Proceeds from disposal of property and equipment | 5,701 | 24 | |
Proceeds from disposal of long-term investments | 177 | 371 | |
Cash paid for additional interest acquired for Loto Interactive | (3,378) | ||
Loans provided to a third party | (459) | (7,965) | |
Repayment of loans provided to a related party | 1,533 | ||
Repayment of loans provided to third parties | 326 | ||
Net cash provided by (used in) investing activities | 24,386 | (75,406) | 3,330 |
Cash flows from financing activities | |||
Proceeds from the exercise of share-based awards | 2,521 | 4 | |
Proceeds from short-term borrowings | 6,306 | 46,739 | 0 |
Repayment of short-term borrowings | (27,732) | 0 | |
Proceeds from issuance of ordinary shares for private placement | 23,464 | 56,139 | 0 |
Net cash provided by financing activities | 29,770 | 77,667 | 4 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,825) | 1,920 | 1,824 |
Net decrease in cash, cash equivalents and restricted cash | (12,230) | (30,090) | (4,649) |
Cash, cash equivalents and restricted cash at beginning of the year | 17,804 | 47,894 | 52,543 |
Cash, cash equivalents and restricted cash at end of the year | 5,574 | 17,804 | 47,894 |
Supplemental disclosures of cash flow information: | |||
Income tax paid | 0 | ||
Interest received | 150 | 189 | 1,435 |
Interest paid | (218) | (336) | 0 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Re-measurement of the lease liabilities and right-of-use assets due to lease modification | 808 | ||
Payment of expense and non-current assets in the form of cryptocurrencies | 6,939 | 2,295 | 0 |
Proceeds from issuance of ordinary shares for private placement in the form of cryptocurrencies | 19,289 | 0 | |
Collateral rendered to lender in the form of cryptocurrencies | 6,306 | 18,949 | 0 |
Repayment of third-party borrowings in the form of cryptocurrencies | 6,523 | 0 | |
Repayment of deposit in the form of cryptocurrencies | 6,586 | 0 | |
Issuance of ordinary shares in connection with business combination and asset acquisition | 3,416 | 94,828 | 0 |
Deposits received from customers of mining data center in the form of cryptocurrencies | 2,192 | 3,965 | 0 |
Cryptocurrencies to be distributed for promotion activities on behalf of a third party | 3,179 | 0 | |
Cryptocurrencies acquired in connection with business combination | 73,184 | 0 | |
Cryptocurrencies borrowed from a third party | 10,222 | 0 | |
Cryptocurrencies paid in connection with asset acquisition | $ 1,731 | 0 | |
Consideration paid to purchase the noncontrolling interest in subsidiary | 17,785 | 0 | |
Property, plant and equipment transferred from long-term prepayment | $ 10,924 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Class A ordinary shares | Class B ordinary shares | Class A preference shares | Ordinary shares | Additional paid-in capital | Treasury shares | Accumulated other comprehensive loss | Accumulated deficit and statutory reserve | Noncontrolling interests | Total |
Balance at Dec. 31, 2019 | $ 22 | $ 404,292 | $ (21,604) | $ (6,738) | $ (291,939) | $ (2,292) | $ 81,741 | |||
Balance, shares at Dec. 31, 2019 | 420,001,792 | 10,000,099 | ||||||||
Net (loss) income for the year | (32,412) | 309 | (32,103) | |||||||
Foreign currency translation gain (loss) | 2,317 | 2,317 | ||||||||
Share of other comprehensive loss of an equity method investee | (177) | (177) | ||||||||
Conversion of Class B to Class A ordinary shares, shares | 10,000,000 | (10,000,000) | ||||||||
Issuance of ordinary shares from exercise of share-based awards | 25 | $ 25 | ||||||||
Issuance of ordinary shares from exercise of share-based awards, shares | 125,900 | 125,900 | ||||||||
Share-based compensation | 8,047 | $ 8,047 | ||||||||
Balance at Dec. 31, 2020 | 22 | 412,364 | (21,604) | (4,598) | (324,351) | (1,983) | 59,850 | |||
Balance, shares at Dec. 31, 2020 | 430,127,692 | 99 | ||||||||
Disposal of VIE | 2,162 | 2,162 | ||||||||
Acquisition of shares of consolidated subsidiaries | (981) | 36,531 | 35,550 | |||||||
Net (loss) income for the year | (62,403) | (11,971) | (74,374) | |||||||
Foreign currency translation gain (loss) | 1,481 | 634 | 2,115 | |||||||
Share of other comprehensive loss of an equity method investee | 631 | 631 | ||||||||
Reclassification into loss from equity method investments | 131 | 131 | ||||||||
Issuance of ordinary shares for private placement | 9 | 75,419 | 75,428 | |||||||
Issuance of ordinary shares for private placement, shares | 185,572,963 | 65,000 | ||||||||
Issuance of ordinary shares for asset acquisition/ business combinations | 3 | 94,825 | 94,828 | |||||||
Issuance of ordinary shares for acquisition/ business combinations, shares | 56,236,295 | |||||||||
Issuance of ordinary shares from exercise of share-based awards | 2 | 2,494 | 2,496 | |||||||
Issuance of ordinary shares from exercise of share-based awards, shares | 38,141,120 | |||||||||
Share-based compensation | 6,446 | 6,446 | ||||||||
Balance at Dec. 31, 2021 | 36 | 590,567 | (21,604) | (2,355) | (386,754) | 25,373 | 205,263 | |||
Balance, shares at Dec. 31, 2021 | 710,078,070 | 99 | 65,000 | |||||||
Disposal of subsidiaries | (5,542) | (5,542) | ||||||||
Net (loss) income for the year | (155,415) | (3,012) | (158,427) | |||||||
Foreign currency translation gain (loss) | (1,605) | (130) | (1,735) | |||||||
Issuance of ordinary shares for private placement, net of issuance costs | 16 | 23,448 | 23,464 | |||||||
Issuance of ordinary shares for private placement, shares | 315,666,650 | |||||||||
Issuance of ordinary shares for asset acquisition/ business combinations | 1 | 3,415 | $ 3,416 | |||||||
Issuance of ordinary shares for acquisition/ business combinations, shares | 16,038,930 | |||||||||
Issuance of ordinary shares from exercise of share-based awards | 1 | (1) | ||||||||
Issuance of ordinary shares from exercise of share-based awards, shares | 10,000 | 22,029,560 | ||||||||
Purchase of non-controlling interests | (1,096) | $ (16,689) | $ (17,785) | |||||||
Share-based compensation | 4,474 | 4,474 | ||||||||
Share-based compensation, shares | 22,029,560 | |||||||||
Balance at Dec. 31, 2022 | $ 54 | $ 620,807 | $ (21,604) | $ (3,960) | $ (542,169) | $ 53,128 | ||||
Balance, shares at Dec. 31, 2022 | 1,063,813,210 | 99 | 65,000 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION BIT Mining Limited (the “Company”) was incorporated under the laws of the Cayman Islands on April 20, 2007 under the original name of “Fine Success Limited”, which was changed to “500wan.com” on May 9, 2011, and changed to “500.com Limited” on October 9, 2013. The Company changed to the new name of “BIT Mining Limited” and the new ticker symbol “BTCM” effective April 20, 2021. The Company has completed the transformation of its business and become an enterprise that primarily engages in cryptocurrency mining, data center operation and mining pool operation in 2021. The Company continually monitors the reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. Due to the transformation into cryptocurrency industry, in the first quarter of 2021, the Company updated the reportable segments. Consequently, the segment disclosures for the year ended December 31, 2020 have been recast to reflect these changes. See Note 24 Segment Information for additional details. On March 31, 2021, the Company completed the subscription for shares of Loto Interactive Limited (“Loto Interactive”), which primarily engages in the data center operation business. The Company’s ownership of Loto Interactive thereby increased to 54.2% and Loto Interactive became a subsidiary of the Company. As a result, the Company began to consolidate Loto Interactive on March 31, 2021. On June 18, 2021, the Company completed the unconditional mandatory cash offers pursuant to certain rules of the Hong Kong Code on Takeovers and Mergers and its ownership of Loto Interactive thereby increased to 59.79%. On July 12, 2022, the Company entered into a share sale and purchase agreement (the “Sale and Purchase Agreement”) with an unaffiliated third party (the “Buyer”), pursuant to which the Company agreed to sell, and the Buyer agreed to purchase, approximately 51% of the total issued share capital of Loto Interactive (the “Transaction”). The Transaction was completed on July 26, 2022. After the Transaction, the Company’s share ownership in Loto Interactive decreased to 8.79%. The Company disposed the remaining 8.79% ownership of Loto Interactive to an unaffiliated third party on March 15, 2023. On April 15, 2021, the Company completed the acquisition of the entire mining pool business of Blockchain Technologies Holding Company operated under BTC.com, including the domain name BTC.com and the cryptocurrency wallet of BTC.com (collectively, the “BTC.com Pool Businesses”). On May 31, 2022, the Company completed the first closing of its previously announced share exchange agreement dated April 5, 2021 (as amended and restated in April 2022, the “Amended and Restated Share Exchange Agreement”) entered into by the Company and the shareholders (the “Selling Shareholders”) of the acquisition of Bee Computing (HK) Limited (“Bee Computing”). At the first closing of the Amended and Restated Share Exchange Agreement, the Company issued 16,038,930 Class A ordinary shares to the Selling Shareholders. See Note 5 for detailed discussion. In September 2021, the Company entered into a Membership Interest Purchase Agreement and certain other auxiliary agreements with Viking Data Centers, LLC (“Viking Data Centers”) to acquire the 51% equity interest in Asgard Data Centers LLC (“Asgard”), which intended to operate a cryptocurrency mining data center in Ohio (the “Ohio Mining Site”). In October 2021, the Company increased its equity interest ownership in the Ohio Mining Site to 55%. The Ohio mining site has a total planned power capacity up to 150 megawatts (“MW”). In June 2022, the Company entered into an agreement with Viking Data Centers that the Company agreed to purchase all remaining equity interest from Viking Data Centers by transferring certain assets that represent 67.5MW, or 45%, of total planned power capacity at the Ohio Mining Site. After completion of the transaction, the Company has exclusive access to 82.5MW of planned electrical power and Viking Data Centers has exclusive access to the remaining 67.5MW, in accordance to their respective equity ownership immediately prior to the transaction. See Note 22 for detailed discussion. The Company experienced a cyberattack on December 3, 2022. In the cyberattack, cryptocurrency assets in amount of approximately US$3,100 were stolen. 1. ORGANIZATION (continued) As of December 31, 2022, the Company has subsidiaries incorporated in countries and jurisdictions including British Virgin Islands, Cayman Islands, Hong Kong, the United States of America (“USA”), Kazakhstan, Canada, mainland China, Malta, Cyprus and Curacao. As of December 31, 2022, the Company’s major subsidiaries are listed below: Percentage of ownership Place of by the Entity Date of establishment establishment Company Principal activities Subsidiaries Fine Brand Limited (“BVI”) February 9, 2011 British Virgin Islands 100 % Investment Holding BT Mining Limited (BT Mining) April 19, 2021 Cayman Islands 100 % Investment Holding 500wan HK Limited (“500wan HK”) March 8, 2011 Hong Kong 100 % Investment Holding Bee Computing (HK) Limited(“Bee Computing”) May 17,2016 Hong Kong 100 % Miner Manufacturing E-Sun Sky Computer (Shenzhen) Co., Ltd. (“E-Sun Sky Computer”) June 18, 2007 Mainland China 100 % Technology Service Star Light Inc. (“Star Light”) January 29, 2021 Cayman Islands 100 % Investment Holding Skill Esport Limited(“Skill Esport”) May 23, 2018 Hong Kong 100 % Cryptocurrency Mining Summit Bend US Corporation(“Summit Bend”) September 22, 2021 USA 100 % Investment Holding Star Light Ohio I Corporation(“Ohio I”) September 23, 2021 USA 100 % Cryptocurrency Mining Star Light Ohio II Corporation(“Ohio II”) September 23, 2021 USA 100 % Investment Holding Asgard Data Centers LLC (“Asgard”) September 16, 2021 USA 100 % Data Center Service Alliance International Technologies Limited(“Alliance International Technologies”) March 11, 2020 British Virgin Islands 100 % Cryptocurrency Mining Hong Kong Sunstar Technology Co., Limited (“Sunstar Technology”) April 9, 2020 Hong Kong 100 % Mining Pool Service Beijing Guixinyanghang Technology Limited(“Guixinyanghang“) June 12, 2020 Mainland China 100 % Technology Service E-Sun Kazakhstan Limited August 23, 2021 Kazakhstan 100 % Investment Holding 1324492 B.C.Ltd September 16, 2021 Canada 100 % Investment Holding The Multi Group Ltd (“The Multi Group” or “TMG”) June 26, 2015 Malta 100 % Investment Holding Multi Warehouse Ltd* December 3, 2014 Malta 100 % Online Gaming Multi Brand Gaming Ltd* October 3, 2014 Malta 100 % Online Gaming Multilotto UK Ltd* September1, 2016 Malta 100 % Online Gaming Lotto Warehouse Ltd* September1, 2016 Malta 100 % Online Gaming Wasp Media Ltd* August 12, 2016 Malta 100 % Online Gaming Round Spot Services Ltd* May 6, 2015 Cyprus 100 % Online Gaming Multi Pay N.V.* August 25, 2011 Curacao 100 % Online Gaming Oddson Europe Ltd* January10, 2018 Malta 100 % Online Gaming * A subsidiary of the Multi Group Information on Variable Interest Entities (“VIEs”) The Company and its subsidiaries are hereinafter collectively referred to as the “Group”. The Company has previously conducted the lottery business in mainland China through a series of contractual arrangements with Shenzhen Youlanguang Science and Technology Co., Ltd., Shenzhen E-Sun Network Co., Ltd., and Shenzhen Guangtiandi Science and Technology Co., Ltd. (collectively, the “lottery business related VIEs”), and their respective shareholders. Since March 31, 2021, the Company also consolidated the financial results of Zhejiang Keying Huancai Information Technology Co., Ltd. (“Zhejiang Keying”), a VIE primarily engaged in the provision of data analysis and storage services, through its contractual arrangement with Loto Interactive Information Technology (Shenzhen) Co., Ltd., which is indirectly controlled by the Company after the completion of the acquisition of the majority interest of Loto Interactive on March 31, 2021. On July 23, 2021, the Company announced the decision to dispose of the VIE structures in mainland China, and on August 3, 2021, the Group has terminated all of the VIE structures with the lottery-related affiliated entities and Zhejiang Keying, and the Group has entered into agreement with Zhejiang Keying and Zhejiang Keying’s shareholders to transfer all of the equity interests of Zhejiang Keying’s subsidiaries to Loto Shenzhen. In February 2022, the Company has completed the transfer of the equity interests of Zhejiang Keying’s subsidiaries to Loto Shenzhen. From July 23, 2021, the Company no longer retained any financial interest over the lottery business related VIEs and accordingly deconsolidated the lottery business related VIEs’ financial statements from the Company’s consolidated financial statements. The disposal of lottery business related VIEs represented a strategic shift and has a major effect on the Company’s result of operations. Accordingly, results of operations related to lottery business related VIEs have been reported as discontinued operations for the years ended December 31, 2021 and 2020. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, allowance for credit losses, useful lives of property and equipment and intangible assets, impairment of long-lived assets, long-term investments and goodwill, the valuation of cryptocurrencies, realization of deferred tax assets, uncertain income tax positions, share-based compensation, valuation of contingent consideration from business combination and purchase price allocation for business combinations and asset acquisitions. Actual results could materially differ from those estimates. Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries. The results of the subsidiaries are consolidated from the date on which the Company obtains control and continue to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All significant intercompany balances and transactions among the Company and its subsidiaries have been eliminated on consolidation. Revision of Previously Issued Financial Statements During the preparation of this Annual Report, the Company identified and corrected an immaterial error related to the impairment calculation of cryptocurrency assets. The Company has been historically calculating the impairment of cryptocurrency assets on a daily basis using a spot price at a standard cutoff time. The Company determined such a method was not in compliance with ASC 350-30-35-19 which requires the recognition of impairment when carrying value exceeds fair value. The Company further determined that the intraday lowest quoted price should be utilized in calculating impairment of the Company’s cryptocurrency assets. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revision of Previously Issued Financial Statements (continued) In accordance with Staff Accounting Bulletin (“SAB”) 99, Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements As of December 31, 2021 Consolidated Balance Sheet As Reported Effect of Adjustment As Revised Cryptocurrency assets $ 55,077 $ (1,887) $ 53,190 Total current assets 95,143 (1,887) 93,256 Total assets 296,116 (1,887) 294,229 Accumulated deficit and statutory reserve (384,867) (1,887) (386,754) Total shareholders' equity 207,150 (1,887) 205,263 Total liabilities and shareholders' equity 296,116 (1,887) 294,229 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revision of Previously Issued Financial Statements (continued) For the year ended December 31, 2021 As Effect of Consolidated Statement of Comprehensive Loss Reported Adjustment As Revised Net gain on disposal of cryptocurrency assets $ 6,717 $ 4,675 $ 11,392 Impairment of cryptocurrency assets (31,757) (6,562) (38,319) Operating loss from continuing operations (68,350) (1,887) (70,237) Loss before income tax from continuing operations (63,925) (1,887) (65,812) Net loss from continuing operations (63,566) (1,887) (65,453) Net loss (72,487) (1,887) (74,374) Net loss attributable to BIT Mining Limited (60,516) (1,887) (62,403) Losses per share for Class A and Class B ordinary shares outstanding-Basic and Diluted: Net loss from continuing operations (0.08) (0.01) (0.09) Net loss (0.09) (0.01) (0.10) Losses per American Depositary Share ("ADS*") (1 ADS represents 100 Class A ordinary shares)-Basic and Diluted: Net loss from continuing operations (8.32) (0.30) (8.62) Net loss (9.72) (0.30) (10.02) * American Depositary Shares, which are traded on the NYSE. Each ADS represents one hundred Class A ordinary shares of the Company. Note: Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, to the current ADS Ratio of 1 ADS to 100 Class A ordinary shares, effective on December 23, 2022. For the year ended December 31, 2021 Consolidated Statement of Cash Flows As Reported Effect of Adjustment As Revised Net loss $ (72,487) $ (1,887) $ (74,374) Impairment of cryptocurrency assets 31,757 6,562 38,319 Net gain on disposal of cryptocurrency assets (6,717) (4,675) (11,392) For the year ended December 31, 2021 Consolidated Statement of Changes in Accumulated deficit and Total shareholders' Shareholders' Equity statutory reserve equity Net loss for the year (as reported) $ (60,516) $ (72,487) Net loss for the year (effect of adjustment) (1,887) (1,887) Net loss for the year (as revised) (62,403) (74,374) Balance as of December 31, 2021 (as reported) (384,867) 207,150 Balance as of December 31, 2021 (effect of adjustment) (1,887) (1,887) Balance as of December 31, 2021 (as revised) (386,754) 205,263 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Foreign currency translation and change in reporting currency The functional currency of the Company, BVI, 500wan HK, Bee Computing, Alliance Technologies, Sunstar Technology, Skill Esport, Summit Bend, Ohio I, Ohio II and Asgard is the US$. The functional currency of the Multi Group and its subsidiaries is EUR. The functional currency of Loto Interactive and its subsidiaries is HKD. E-Sun Sky Computer with its former VIEs and Beijing Guixinyanghang determined their functional currencies to be RMB, which is their respective local currencies based on the criteria of ASC 830, “ Foreign Currency Matters” Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Exchange gains and losses resulting from foreign currency transactions are included in the consolidated statements of comprehensive loss. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Foreign currency translation and change in reporting currency (continued) Starting from the third quarter of 2021, the Group changed its reporting currency from RMB to US$, to reduce the impact of increased volatility of the US$ to RMB exchange rate on the Group’s reported operating results. The aligning of the reporting currency with the underlying operations will better depict the Group’s results of operations for each period. The related financial statements prior to July 1, 2021 have been recasted to US$ as if the financial statements originally had been presented in US$ since the earliest periods presented. The change in reporting currency resulted in cumulative foreign currency translation gain to the Group’s comprehensive loss of US$2,317 and US$1,481 for the years ended December 31, 2020 and 2021, respectively. Business combinations, asset acquisitions and noncontrolling interests The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805 (“ASC 805”), “ Business Combinations” If investment involves the acquisition of an asset or group of assets that does not meet the definition of a business, the transaction is accounted for as an asset acquisition. An asset acquisition is recorded at cost, which includes capitalized transaction costs, and does not result in the recognition of goodwill. The cost of the acquisition is allocated to the assets acquired on the basis of relative fair values. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual legal criterion or the separability criterion. Identifiable intangible assets recognized in the Company’s acquisitions generally include brand name, strategic contract and unpatented technology. For the Company’s majority-owned subsidiaries, noncontrolling interests are recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. “Net loss” on the consolidated statements of comprehensive loss include the “net loss attributable to noncontrolling interests”. The cumulative results of operations attributable to non-controlling interests are also recorded as noncontrolling interests in the Company’s consolidated balance sheets. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Business combinations, asset acquisitions and noncontrolling interests (continued) The Group recognized changes in fair value of contingent consideration in the amount of a gain of US$13,936 and US$1,247 during the years ended December 31, 2021 and 2022, respectively, which was related to the remeasurement of the contingent consideration from the acquisition of Alliance International Technologies Limited, which operates the mining pool under the brand of BTC.com. The contingent consideration is settled as of December 31, 2022. See Note 5 for detailed discussion. Cash and cash equivalents Cash and cash equivalents represent cash on hand and time deposits, which have original maturities of three months or less when purchased and which are unrestricted as to withdrawal and use. In addition, highly liquid investments which have original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash Restricted cash represents cash held by banks which were granted by the government and designated only for certain approved projects and deposits in merchant banks where withdrawals are currently restricted. Short-term Investment Short-term investment represents fixed coupon notes with original maturities of greater than three months but less than a year. Allowance for doubtful accounts Receivables are carried at original invoiced amount less an allowance for doubtful accounts when collection of the amount is no longer probable. Collateral is not typically required, nor is interest charged on receivables. Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Group used a modified retrospective approach and the adoption does not have an impact on the Group’s consolidated financial statements. The Group’s accounts receivable and other receivables are within the scope of ASC Topic 326. To estimate expected credit losses, the Group has identified the relevant risk characteristics of the receivables which include size and nature. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions and future economic conditions (external data and macroeconomic factors). This is assessed at each quarter based on the Group’s specific facts and circumstances. There have been no significant changes in the assumptions since adoption. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cryptocurrency assets Cryptocurrency assets are included in current assets in the accompanying consolidated balance sheets. Cryptocurrency assets generated from the cryptocurrency mining business and the mining pool business are accounted for in connection with the Group’s revenue recognition policy disclosed below. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment quarterly, or more frequently, when events or changes in circumstances occur, principally decreases in the quoted prices of the cryptocurrencies, indicating that it is more likely than not that the indefinite-lived asset is impaired. In determining if an impairment has occurred, the Company considers the intraday lowest quoted price of one unit of cryptocurrency asset since acquiring the cryptocurrency asset. If the then current carrying value of the unit of cryptocurrency exceeds the fair value so determined, an impairment loss has occurred with respect to those units of cryptocurrencies in the amount equal to the difference between their carrying values and the fair value determined. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For the years ended December 31, 2020, 2021 and 2022, the Group recognized impairment loss of nil , US$ 38,319 and US $18,435 , respectively. Cryptocurrencies generated from the cryptocurrency mining business and the mining pool business as well as the cryptocurrencies distributed to mining pool participants are included within operating activities in the accompanying consolidated statements of cash flows. The sales of cryptocurrencies are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in gain or loss of disposal of cryptocurrencies in the consolidated statements of comprehensive loss. The Group accounts for its gains or losses in accordance with the first-in-first-out (FIFO) method of accounting. The Company also enters into transactions to transfer cryptocurrencies to pay for operating expense and to acquire certain assets. Such transactions are accounted for in accordance with ASC 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets”. Under ASC 610-20, if the Group does not have a controlling financial interest in the entity that holds the cryptocurrency and the arrangement meets the criteria to be accounted for as a contract, the Group would de-recognize the cryptocurrency and recognize a gain or loss on the transfer of the cryptocurrency when control of the cryptocurrency transfers to the counterparty. The gain or loss is measured as the difference between the amount of consideration allocated to the cryptocurrency and its carrying amount. For the years ended December 31, 2020, 2021 and 2022, the gain or loss recorded on such transactions was nil. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Property and equipment, net Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Estimated Residual Machinery and equipment-data center equipment 5 years 5 % Machinery and equipment- mining machine and other equipment 2-3 years — Electronics and office equipment 3-5 years 5 % Motor vehicles 5-10 years 5 % Leasehold improvements Shorter of lease term or the estimated useful lives of the assets — Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Intangible assets Intangible assets represent computer software, internet domain name, licensing agreement, and intangible assets arising from business combination and asset acquisitions. Computer software, internet domain name and licensing agreement purchased from third parties are initially recorded at cost and amortized on a straight-line basis over their estimated useful lives of the respective assets. The Group performs valuation of the intangible assets arising from business combination to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated useful life of the assets. Estimated useful lives of the respective assets are set out as follows: Category Estimated Useful Life Computer software 3-10 years Internet domain name 10 years Licensing agreement Agreement term Intangible assets arising from business combination and asset acquisitions Licenses and brand name 10 years Mobile applications and software 5 years Internet domain name and brand name 10 years Strategic contract 5 years Unpatented technology 3 years 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. The Group assesses goodwill for impairment in accordance with ASC 350-20 (“ASC 350-20”), “Intangibles–Goodwill and Other: Goodwill”, which requires that goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Group recognizes an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, up to the amount of goodwill allocated to that reporting unit. The Company identified the BTC.com Pool Business to be the reporting unit for goodwill impairment testing. During the year ended December 31, 2022, the Company performed both qualitative and quantitative assessment for goodwill impairment by comparing the fair value of BTC.com Pool Businesses to its carrying value. The Company used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation specialist to estimate fair value, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rate. As a result, the impairment loss on goodwill of US$26,569 was recognized for the year ended December 31, 2022. Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets or asset group, including property and equipment, intangible assets and right-of-use assets, with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value. The Group recorded an impairment loss of US$56 for intangible assets of Loto Interactive for the year ended December 31, 2021, and a total impairment of US$56,094 for intangible assets of Alliance International Technologies and Asgard for the year ended December 31, 2022. There was no such impairment for the year ended December 31, 2020. The Group recorded an impairment loss of US$22,392 for property and equipment and an impairment loss of US$387 for right-of-use assets, due to the closure and demolition of data centers in Sichuan, China, of Loto Interactive for the year ended December 31, 2021, and an impairment of US$35,224 mainly for the mining machines in Kazakhstan and the USA for the year ended December 31, 2022. There was no such impairment for the year ended December 31, 2020. Long-term investments The Group’s long-term investments consist of equity investments without readily determinable fair value and equity method investments. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group records them at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASC Topic 321 (“ASC 321”), “ Investments Equity Securities 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Long-term investments (continued) Management regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323 (“ASC 323”), “ Investments-Equity Method and Joint Ventures According to the above testing, impairment loss of US$4,787, nil and US$2,250 for the long-term investments was recognized during the years ended December 31, 2020, 2021 and 2022, respectively. Investments in limited partnerships greater than 5% are considered more than minor and accounted for using the equity method, unless it is readily apparent that the Group has virtually no influence over the partnership’s financial and operating policies. Cryptocurrency asset borrowings In April 2021, the Group borrowed cryptocurrency assets from a third party on an unsecured basis in connection with acquisition of the entire mining pool business of Blockchain Technologies Holding Company operated under BTC.com. The borrowing is interest-free and due in three months. In July 2021, the Group has repaid the borrowing in cryptocurrencies. The borrowings are accounted for as hybrid instruments, with a liability host contract that contains an embedded derivative based on the changes in the fair value of the underlying cryptocurrency asset. The host contract is carried at the fair value of the assets acquired. The embedded derivative is accounted for at fair value, with changes in fair value recognized as changes in fair value of derivative instrument in the consolidated statements of comprehensive loss. During the year ended December 31, 2021, the Company recognized changes in fair value of derivative instrument of $3,696 in the consolidated statements of comprehensive loss. There was no such event during the year ended December 31, 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cryptocurrency asset borrowings (Continued) Derivative contracts As a result of the Group entering into transactions to borrow cryptocurrencies, an embedded derivative is recognized relating to the differences between the cost of the cryptocurrencies borrowed on the contract effective date and the fair value of the cryptocurrencies that will ultimately be repaid, based on changes in the spot price of the cryptocurrencies over the term of the borrowing. The Group measures the fair value of the cryptocurrencies by taking the quoted prices from active markets, which the Group considers to be a Level 1 fair value input under ASC 820 “Fair Value Measurements and Disclosures”. Fair value measurements Financial instruments primarily include cash and cash equivalents, restricted cash, short-term investment, accounts receivable, prepayments and other receivables, equity security without readily determinable fair values, equity method investments, accounts payable and accrued expenses and other current liabilities. The Group carries the investment under the measurement alternative basis and equity method investment on other-than-temporary basis. Contingent consideration related to the acquisition of Alliance International Technologies is included in accrued expenses and other current liabilities in the consolidated balance sheets, the fair value of which was based on the number of shares of ordinary shares that were expected to be issued and the fair value of the ordinary shares of the Company. The carrying values of other financial instruments, approximate their fair values due to their short-term maturities. The Group’s non-financial assets, including cryptocurrency assets, intangible assets, goodwill and property and equipment are measured at fair value when an impairment charge is recognized. Fair value of cryptocurrencies is based on quoted prices in active markets. The Group applies ASC 820 (“ASC 820”), “Fair Value Measurements and Disclosures”. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2— Include other inputs that are directly or indirectly observable in the marketplace. Level 3— Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach, and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Related party transactions A related party is generally defined as (i) any person holds 10% or more of the Company’s securities and their immediate families (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Revenue recognition The Group’s revenues were derived principally from cryptocurrency mining, data center services, mining pool services and online gaming services. The Group also provided sports information service through its former lottery business related VIE subsidiaries and disposed of this business line together with the disposal of VIE structures on July 23, 2021. The Group accounts for revenues under ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The primary sources of the Group’s revenues are as follows: Cryptocurrency mining The Group has entered into a cryptocurrency mining pool, BTC.com, by executing contracts with the mining pool operator to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Group’s enforceable right to compensation only begins when the Group provides computing power to the mining pool operator. In exchange for providing computing power, the Group is entitled to considerations in the form of cryptocurrencies from the mining pool operator (less pool operator fees to the mining pool operator which are recorded net with revenues), which is calculated based on a predetermined formula agreed by the Group and the mining pool operator as a part of the contracts. Providing computing power is an output of the Group’s ordinary activities and is the only performance obligation in the Group’s contract with the pool operator. The Group is entitled to consideration even if a block is not successfully placed by the mining pool operator. The transaction consideration the Group receives is noncash consideration in the form of cryptocurrencies. The Group measures the cryptocurrencies at fair value at contract inception. All considerations are variable and revenue is recognized when the computing power is provided to the mining pool and there is no uncertainty associated with the variable consideration. There is no significant financing component in these transactions. Cryptocurrency mining revenue generated from providing computing power to the Group’s affiliated consolidated subsidiary, BTC.com, is eliminated in consolidation, along with corresponding intercompany cost of mining pool services. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition (continued) Data center services The Group provides data center services such as providing its customers with rack space, utility, and cloud services such as virtual services, virtual storage, and data backup services, generally based on monthly services provided at a defined price included in the contracts. The performance obligations are the services provided to a customer for the month based on the contract. The transaction price is the price agreed with the customer for the monthly services provided and the revenues are recognized monthly based on the services rendered for the month. Mining pool services The Group operates its mining pool, BTC.com, to enable providers of computing power (“pool participants”) to participate in crypto-mining activities in an efficient manner in the blockchain network. It receives all the mining rewards, and then allocates mining rewards to each pool participant net of the pool operator fees based on the sharing mechanism predetermined. Using computing power provided by the pool participants, the Group provides transaction verification services to the blockchain networks and transac |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2022 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | 3. CONCENTRATION OF RISKS Concentration of credit risk Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents and restricted cash. As of December 31, 2022, substantially all of the Group’s cash and cash equivalents and restricted cash were deposited in financial institutions located in the mainland China, Hong Kong, United States and Malta, which management believes are of high credit quality. Concentration of customers For the year ended December 31, 2021, no customer accounted for 10% or more of the Group’s revenues. For the year ended December 31, 2022, the customer accounted for 10% or more of the Group’s revenues was as follows: For the year ended December 31, 2021 2022 A — % 11.0 % Concentration of suppliers For the years ended December 31, 2021 and 2022, the supplier accounted for 10% or more of the Group’s costs was as follows: For the year ended December 31, 2021 2022 A 17.5 % 17.6 % Vulnerability due to change of regulations or policies The blockchain and cryptocurrency mining business could be significantly affected by, among other things, the regulatory and policy developments in international markets where the Company operates, such as the United States and Kazakhstan. Governmental authorities are likely to continue to issue new laws, rules and regulations governing the blockchain and cryptocurrency industry in and enhance enforcement of existing laws, rules and regulations. For example, the People’s Bank of China (the “PBOC”), Ministry of Industry and Information Technology, State Administration for Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission issued “Announcement on Preventing Token Fundraising Risks” on September 4, 2017, prohibiting all organizations and individual from engaging in initial coin offering transactions. On May 21, 2021, the Financial Stability and Development Committee of the State Council in mainland China called for the need to resolutely control financial risks and crack down on cryptocurrency mining and trading activities. On June 18, 2021, the “Notice of the Sichuan Provincial Development and Reform Commission and the Sichuan Provincial Energy Administration on the Cleanup and Shutdown of Virtual Currency Mining Projects” required electricity companies within Sichuan Province to close down power supply to businesses involved in cryptocurrency mining. On June 21, 2021, the Company terminated the operations of the two data centers in Sichuan according to the written notice from the Local Power Supplier. As of December 31, 2022, the mining pool subsidiary of the Company has completely exited the mainland China market, ceased registering new users from mainland China and retired accounts of existing users from mainland China. 3. CONCENTRATION OF RISKS (continued) The Group had begun the development of the international operations before these regulatory and policy developments in mainland China. In the second half of 2021, the Group has finished the migration of the cryptocurrency operations to international markets. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS Disposition of VIEs and VIE subsidiaries On July 23, 2021, the Group terminated all of its lottery business-related VIE contracts for nil consideration and disposed of its Chinese lottery-related business. From July 23, 2021, the Group no longer retained any financial interest over lottery business related VIEs and accordingly deconsolidated lottery business related VIEs’ financial statements from the Group’s consolidated financial statements. The disposal of lottery business related VIEs represented a strategic shift and has a major effect on the Group’s result of operations. Accordingly, revenues, expenses and cash flows related to lottery business related VIEs have been reclassified in the consolidated financial statements as discontinued operations for the years ended December 31, 2020 and 2021. On July 23, 2021, the Group calculated a loss resulting from such disposition as follows: As of July 23, 2021 US$ Consideration — Cash and cash equivalents 1,200 Restricted Cash 194 Prepayments and other receivables 2,032 Property and equipment, net 1,346 Intangible assets, net 102 Long-term investments 492 Other non-current assets 236 Accrued payroll and welfare payable (173) Accrued expenses and other current liabilities (833) Long-term payables (61) Net assets of lottery business related VIEs* 4,535 Noncontrolling interest of lottery business related VIEs 2,162 Less: Net assets of lottery business related VIEs contributable to the Company 6,697 Loss on disposal of lottery business related VIEs (6,697) * Net assets of lottery business related VIEs excluded payables of US $31,195 to the Company, which mainly consisted a loan of US $27,987 provided by the Company to the former VIE subsidiary, Shenzhen E-Sun Sky Network Technology Co.,Ltd. (“E-Sun Sky Network”) and the Company does not have an intention to collect. The exemption of debt filed by the Company and E-Sun Sky Network was approved by the PRC State Administration of Foreign Exchange and the State Taxation Administration in May 2022. 4. DISCONTINUED OPERATIONS (continued) Disposition of VIEs and VIE subsidiaries (continued) The condensed cash flows of lottery business related VIEs were as follows for the years ended December 31, 2020, and 2021: For the years ended December 31, 2020 2021* US$ US$ Net cash used in operating activities (5,960) (2,985) Net cash provided by investing activities 2,826 953 Net cash provided by (used in) financing activities 3,026 (26,955) Effect of foreign exchange on cash 1,889 381 The operating results from discontinued operations included in the Group’s consolidated statements of comprehensive loss were as follows for the years ended December 31, 2020 and 2021: For the years ended December 31, 2020 2021* US$ US$ Major classes of line items constituting pre-tax profit of discontinued operations Revenues 1,000 1,269 Cost of revenue (419) (192) Sales and marketing (1,284) (556) General and administrative (7,822) (2,322) Service development expenses (2,444) (496) Other income that are not major 1,690 73 Loss from discontinued operations, before income tax (9,279) (2,224) Income tax expense 500 — Loss from discontinued operations, net of income tax (8,779) (2,224) Loss on disposal of the subsidiary, net of income tax — (6,697) Net loss from discontinued operations, net of income tax (8,779) (8,921) * Included financial results of discontinued operations from January 1, 2021 to July 23, 2021. |
BUSINESS COMBINATION, ASSET ACQ
BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY | |
BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY | 5. BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY Acquisition and Disposal of Loto Interactive Loto Interactive (formerly known as MelcoLot Limited) is a company listed on the Hong Kong Stock Exchange (Stock Code: 8198). The Company’s investment in equity shares of Loto Interactive was 33.74% before the acquisition of Loto Interactive in 2021. On March 31, 2021, the Company completed the subscription for 169,354,839 shares of Loto Interactive, at a price of HK$0.62 per share for a total consideration of HK$105,000 (US$13,503) in cash (the “Share Subscription”). The Company’s ownership of Loto Interactive thereby increased to 54.2%, and Loto Interactive and its subsidiaries became subsidiaries of the Company. The Company recorded a gain on the previously-held equity interest of US$5,500 for the re-measurement of the previously-held equity interest in Loto Interactive at the acquisition date fair value. 5. BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (continued) Acquisition and Disposal of Loto Interactive (Continued) Concurrently with the completion of the Share Subscription, Loto Interactive has completed its acquisition of the remaining equity interests in its indirectly held subsidiary, Ganzi Changhe Hydropower Consumption Service Co., Ltd. (“Ganzi Changhe Data Center”), for a total consideration of RMB88,200 (US$13,841) in cash. The following table presents the calculation of the purchase consideration. The calculation of US$ amount was based on the exchange rate of 1.00 HKD to 0.1286 US$ of the acquisition date on March 31, 2021. Amount Amount HKD US$ Re-measurement of the fair value of previously-held equity interest 79,280 10,200 Purchase price at acquisition close on March 31, 2021 105,000 13,503 Fair value of noncontrolling shareholders 155,715 20,029 Total allocated purchase price 339,995 43,732 The following table presents the purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date. Amount Amount HKD US$ Current assets 232,103 29,854 Property and equipment, net 201,713 25,946 Other non-current assets 71,728 9,226 Total identifiable assets acquired 505,544 65,026 Current liabilities 163,161 20,987 Non-current liabilities 2,388 307 Total liabilities assumed 165,549 21,294 Net identifiable assets acquired 339,995 43,732 Total acquisition costs of US$796 were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the consolidated statements of comprehensive loss. On June 18, 2021, the Company completed its unconditional mandatory cash offer, all the shares in issue of Loto Interactive other than those already owned or agreed to be acquired by the Company and its parties acting in concert, pursuant to Rule 26.1 of the Hong Kong Code on Takeovers and Mergers (the “Share Offer”) and its cash offer for the cancellation of all options of Loto Interactive in accordance with Rule 13.5 of the Hong Kong Code on Takeovers and Mergers (the “Option Offer”). Upon closing of such cash offer, the Company acquired a total of 30,642,534 shares with a total consideration of approximately HKD26,224 (US$3,378) under the Share Offer. The Company’s ownership in Loto Interactive increased to 59.8% accordingly and the transaction was recorded as an equity transaction. 5. BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (continued) Acquisition and Disposal of Loto Interactive (continued) On July 12, 2022, the Company entered into a share sale and purchase agreement with Manful Kingdom Limited to sell 51% of total issued share capital of Loto Interactive, representing 279,673,200 shares of Loto Interactive at the price of HK$0.28 per share for a total consideration of HK$78,308 (the “Transaction”). The Transaction was completed on July 26, 2022. After the Transaction, the Company’s share ownership in Loto Interactive decreased to 8.79%. The sale of Loto Interactive did not constitute a strategic shift that would have a major effect on the Company’s operations or financial results and as such, Loto Interactive has not been reclassified as discontinued operations in the Group’s financial statements for the year ended December 31, 2021. The following table represents a summary of the assets and liabilities disposed of at the disposal date. The calculation of US$ amount was based on the exchange rate of 1.00 HKD to 0.1274 US$ of the disposal completion date on July 26, 2022. Amount Amount HKD US$ Net assets disposed of: Cash and cash equivalents 39,174 4,990 Amounts due from related parties 422 54 Prepayments and other receivables 37,534 4,781 Property and equipment, net 24,443 3,114 Long-term investments 3,514 448 Other non-current assets 33,488 4,266 Accounts payable (3,206) (408) Amounts due to related parties (6,099) (777) Accrued payroll and welfare payable (12,623) (1,608) Other current liabilities (4,756) (606) Income tax payable (3,278) (418) Other non-current liabilities (800) (102) Net assets of the subsidiaries 107,813 13,734 Noncontrolling interest of the subsidiaries (43,412) (5,542) Fair value of retained non-controlling interest in the subsidiaries (13,497) (1,719) Net assets of the subsidiaries attributable to the Company 50,904 6,473 Reclassification of accumulated translation adjustment into gain on disposal 1,241 184 Consideration 78,308 9,997 Gain from disposal of subsidiaries 26,163 3,340 Cash flows in respect of the disposal is as below: Amount Amount HKD US$ Cash flows of the disposal: Cash and cash equivalents deconsolidated (39,174) (4,990) Proceeds from the disposal of subsidiaries 78,308 9,997 Proceeds from disposal of subsidiaries, net of cash disposed 39,134 5,007 5. BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (continued) Acquisition of Alliance International Technologies Limited (formerly known as “Blockchain Alliance Technologies Limited”) On April 15, 2021, the Company announced the first closing of its previously announced transactions contemplated by the share exchange agreement, as amended (the “Share Exchange Agreement”), dated February 16, 2021, with Blockchain Alliance Technologies Holding Company (“Blockchain Alliance Holding”). Pursuant to the Share Exchange Agreement, the Company has issued an aggregate of 44,353,435 Class A ordinary shares of par value US$0.00005 per share of the Company to Blockchain Alliance Holding in exchange for the entire outstanding share capital of Alliance International Technologies Limited (“Alliance International Technologies”, formerly known as “Blockchain Alliance Technologies Limited”) held by Blockchain Alliance Holding. In accordance with the Share Exchange Agreement, the entire mining pool business of Bitdeer Technologies Holding Company (“Bitdeer”) operated under BTC.com, including the domain name BTC.com and the cryptocurrency wallet of BTC.com (collectively, the “BTC.com Pool Businesses”) have now been transferred to the Company. The Company and Blockchain Alliance Holding also agreed that, in the twelve-month period from April 1, 2021 to March 31, 2022, if the BTC.com Pool Businesses records net operating profit, the Company shall issue additional Class A ordinary shares to Blockchain Alliance Holding at par value and a maximum of 22,176,718 additional Class A ordinary shares shall be issuable. If the BTC.com Pool Businesses records net operating loss, the Company shall be entitled to repurchase certain Class A ordinary shares held by Blockchain Alliance Holding at par value and a maximum of 4,435,344 Class A ordinary shares shall be subject to such repurchase arrangement. The following table presents the calculation of the purchase consideration of the acquisition date on April 15, 2021. Amount USD Fair value of 44,353,435 Class A ordinary shares at acquisition close on April 15, 2021 69,945 Contingent consideration 15,183 Total allocated purchase price 85,128 5. BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (continued) Acquisition of Alliance International Technologies Limited (formerly known as “Blockchain Alliance Technologies Limited”) (continued) As of the acquisition date, the Group recognized US$15,183 as contingent consideration in accrued expenses and other current liabilities. As of December 31, 2021, the fair value of the contingent consideration, assessed by a third-party appraiser, was estimated to be US$1,247. The contingent consideration was settled as of December 31, 2022. The Group recognized changes in fair value of contingent consideration of US$13,936 and US$1,247, respectively, in the statement of comprehensive loss during the years ended December 31, 2021 and 2022. The following table presents the purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date. Amount Amortization Years USD Current assets 73,389 — Acquired intangible assets 58,559 10.0 Other non-current assets 31 — Total identifiable assets acquired 131,979 — Other current liabilities 73,420 — Total liabilities 73,420 — Net identifiable assets acquired 58,559 — Total Consideration 85,128 — Goodwill 26,569 — Total acquisition costs of US$766 were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the consolidated statements of comprehensive loss. Goodwill, which is not tax deductible, is primarily attributable to the excess of the consideration over the fair value of the net identifiable assets of the acquiree and is related to synergies expected to be achieved from the acquisition. The Group identified BTC.com Pool Businesses to be the reporting unit for goodwill impairment testing and recognized impairment loss on goodwill of US$26,569 during the year ended December 31, 2022. The Group used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation specialist to estimate the fair value of BTC.com Pool Businesses and recognized the impairment loss for the amount by which the carrying amount of BTC.com Pool Businesses exceeds its fair value. Acquired intangible assets consist primarily of brand name and internet domain, which have estimated useful lives of 10 years from the date of acquisition. The Group recognized impairment loss on the acquired intangible asset of US$48,555 during the year ended December 31, 2022 in view of its inability to generate sufficient operating cash flows as expected. The Group used the income approach with the multi-period excess-earnings valuation method with the assistance of a third-party valuation specialist to estimate the fair value, and recognized the impairment loss for the amount by which the carrying value of the intangible asset exceeds its fair value. 5. BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (continued) Acquisition of Bee Computing (HK) Limited On May 31, 2022, the Company completed the first closing of its previously announced share exchange agreement dated April 5, 2021 (as amended and restated in April 2022, the “Amended and Restated Share Exchange Agreement”) entered into by the Company and the shareholders (the “Selling Shareholders”) of the acquisition of Bee Computing (HK) Limited (“Bee Computing”). At the first closing of the Amended and Restated Share Exchange Agreement, the Company issued 16,038,930 of its Class A ordinary shares to the Selling Shareholders. Meanwhile, the Company’s preexisting loans to Bee Computing was considered effectively settled upon the acquisition. The settlement amount was included in the total purchase consideration. The transaction was accounted for as an asset acquisition as Bee Computing did not meet the definition of a business upon acquisition. The following table presents the calculation of the purchase consideration of the acquisition date. Amount US$ Fair value of 16,038,930 Class A ordinary shares at acquisition close on May 31, 2022 3,416 Effective settlement of preexisting loans 18,397 Total purchase consideration 21,813 The following is a summary of the estimated fair value of the assets acquired as of the acquisition date. Amount Amortization Years US$ Cash 25 Prepayments and other receivables 18,155 Acquired intangible asset 3,633 3.0 Total identifiable assets acquired 21,813 Total purchase consideration 21,813 The acquired intangible asset was the unpatented technology for the Litecoin ASIC mining machines, which has an estimated useful life of 3 years from the date of acquisition. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS | |
INVESTMENTS | 6. INVESTMENTS Long-term Investments As of As of December 31, December 31, 2021 2022 US$ US$ Carrying amount of equity investments without readily determinable fair value 7,670 5,058 Carrying amount of equity method investments 2,380 2,991 Carrying amount of long-term investments 10,050 8,049 6. INVESTMENTS (continued) Long-term Investments (Continued) Equity investments without readily determinable fair value In accordance with ASC 321, the Group elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The carrying amount of the Group’s equity investments measured using the measurement alternative was US$9,543, net of US$1,873 in accumulated impairment and US$9,181, net of US$4,123 in accumulated impairment as of December 31, 2021 and 2022, respectively. The Group recognized an impairment of nil, nil and US$2,250 for the years ended December 31, 2020, 2021 and 2022, respectively. Impairment charges for the year ended December 31, 2022 included in the net loss consisted of impairment on equity investment in PTE (Hong Kong) LTD of US$1,000 and impairment on equity investment in Cheerful Interactive Limited of US$1,250. Equity method investments Investments were classified as equity method investments as the Group has significant influence over the entities. The net operating income (loss) from equity method investments from continuing operations recognized for the years ended December 31, 2020, 2021 and 2022 were US$(1,865), US$(1,184) and US$164, respectively. The net operating income (loss) from equity method investments included in net loss from discontinued operations recognized for the years ended December 31, 2020, 2021 and 2022 were US$299, US$(399) and nil, respectively. The Group recognized an impairment of US$4,787, nil and nil in Loto Interactive for the years ended December 31, 2020, 2021 and 2022, respectively. |
CRYPTOCURRENCY ASSETS
CRYPTOCURRENCY ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
CRYPTOCURRENCY ASSETS | |
CRYPTOCURRENCY ASSETS | 7. CRYPTOCURRENCY ASSETS The amounts represented the cryptocurrencies held by the Group as of December 31, 2021 and 2022. For the year ended December 31, 2021 and 2022, the Group generated cryptocurrencies through cryptocurrency mining business and the mining pool business. The movement of cryptocurrencies was as follows: For the year For the year ended December ended December 31, 2021 31, 2022 US$ US$ Beginning balance — 53,190 Receipts from issuance of ordinary shares for private placement 19,289 — Cryptocurrencies acquired in connection with business combination 73,184 — Cryptocurrencies borrowing 10,222 — Cryptocurrencies mined from mining pool business 1,275,238 592,583 Cryptocurrencies mined from mining business 39,013 47,126 Cryptocurrency to be distributed for promotion activities on behalf of a third party 3,179 — Deposits received from customers of mining data center 3,965 2,192 Distribution to pool participants (1,282,143) (611,747) Repayment of deposit in the form of cryptocurrencies (6,586) — Repayment of cryptocurrencies borrowings (6,523) — Payment of service expense and long-lived assets (2,295) (6,939) Cryptocurrencies paid in connection with asset acquisition (1,731) — Disposal of cryptocurrency assets* (32,924) (43,787) Utility fee received from customers of mining data center — 3,658 Cyberattack loss — (3,100) Others (379) 231 Impairment of cryptocurrency assets (38,319) (18,435) Ending balance of cryptocurrency assets, net 53,190 14,972 * In January 2022, the Company entered into a loan agreement and a pledge agreement for one year, pursuant to which the lender agreed to lend to the Company funds equal to approximately US$6,306,which was 65% of the current fair market value of 4,000 Ethereum, with a fixed interest rate of 3.25% per annum. In June 2022, the loan has been fully settled by rendering the pledged Ethereum to the lender. Disposal of cryptocurrencies for the year ended December 31, 2022 included the carrying amount of the pledged Ethereum of US$9,628 rendered to the lender and the Group recorded a loss on disposal of cryptocurrencies in the amount of approximately US$3,322. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 8. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consist of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Receivables from third-party payment service providers 574 504 Utility deposits 2,820 630 Deferred expense* 401 1,640 Loans to the third parties** 9,328 1,259 Deductible value-added input tax 7,458 3,535 Others 944 742 Prepayments and other receivables 21,525 8,310 * Deferred expense represents cash paid in advance to vendors, such as consultant expense and compliance expense, which would be amortized according to their respective service periods. ** Loans to the third parties as of December 31, 2021 mainly consist of the free interest and due on demand loans of US$7,965 to Bee Computing which engages in the research and development of cryptocurrency mining chips and mining machines. The preexisting loans were effectively settled on the acquisition date. See Note 5 for detailed discussion. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 9. PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Machinery and equipment 95,979 79,941 Electronics and office equipment 1,280 512 Motor vehicles 966 901 Leasehold improvements 9,082 5,704 Construction in progress 7,662 8,703 Property and equipment, cost 114,969 95,761 Less: Accumulated depreciation (22,284) (34,151) Less: Provision for impairment (22,486) (34,390) Property and equipment, net 70,199 27,220 9. PROPERTY AND EQUIPMENT, NET (continued) Depreciation expenses from continuing operations for the years ended December 31, 2020, 2021 and 2022 were approximately US$2,253, US$14,328 and US$24,050, respectively. Depreciation expenses from discontinued operations were approximately US$4,075, US$734 and nil for the years ended December 31, 2020, 2021 and 2022, respectively. Impairment of property and equipment for the year ended December 31, 2021 was approximately US$22,392, mainly due to the closure and demolition of data centers in Sichuan, China. Impairment for the year ended December 31, 2022 was approximately US$35,224, which was mainly due to the impairment of mining machines in Kazakhstan and the USA and impairment of mining machines of Loto Interactive in Kazakhstan prior to the disposal of Loto Interactive. See Note 5 for detailed discussion of the disposal of Loto Interactive. There was no such impairment for the years ended December 31, 2020. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET Intangible assets consist of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Cost: Computer software 3,988 3,538 License agreement 22,252 22,252 Internet domain name 150 150 Brand name 71,292 71,292 Strategic contract 18,199 10,010 Unpatented technology — 3,633 115,881 110,875 Accumulated amortization: Computer software (3,317) (2,953) License agreement (5,470) (5,470) Internet domain name (10) (25) Brand name (7,279) (13,135) Strategic contract (909) (2,471) Unpatented technology — (505) (16,985) (24,559) Impairment* : Computer software (581) (524) License agreement (16,782) (16,782) Brand name (9,602) (58,157) Strategic Contract — (7,539) (26,965) (83,002) Intangible assets, net 71,931 3,314 * The impairment as of December 31, 2021 include impairment of US$26,909 related to the acquired intangible assets of the Multi Group that were recognized during the year ended December 31, 2019, and impairment of US$56 related to the intangible assets of computer software of Loto Interactive during the year ended December 31, 2021. During the year ended December 31, 2022, the Group recorded additional impairment of US$48,555 related to the brand name and domain name of Alliance International Technologies and impairment of US$7,539 for the strategy contract of Asgard. The Group derecognized accumulated impairment of US$56 as a result of the disposal of Loto Interactive during the year ended December 31, 2022. 10. INTANGIBLE ASSETS, NET (continued) Amortization expenses from continuing operations for the years ended December 31, 2020, 2021 and 2022 were approximately US$252, US$5,261 and US$9,132, respectively. Amortization expenses from discontinued operations were approximately US$66, US$32 and nil for the years ended December 31, 2020, 2021 and 2022, respectively. Annual estimated amortization expense for each of the five succeeding years is as follows: US$ 2023 1,273 2024 1,238 2025 723 2026 15 2027 15 2028 and thereafter 50 Total 3,314 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2022 | |
OPERATING LEASES | |
OPERATING LEASES | 11. OPERATING LEASES The Group entered into various operating lease agreements for offices space. The remaining lease terms range from 0.67 to 3.75 years. The Group’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table presents the operating lease related assets and liabilities recorded on the Group’s consolidated balance sheet. As of As of December 31, December 31, 2021 2022 US$ US$ Right-of-use assets 6,553 4,135 Impairment of right-of-use assets (387) — Right-of-use assets, net 6,166 4,135 Operating lease liabilities - current 2,213 1,367 Operating lease liabilities - non-current 4,569 2,837 Total operating lease liabilities 6,782 4,204 For the year ended December 31, 2020, the Group had operating lease costs from continuing operations of US$121 and recorded short-term lease costs of US$405. For the year ended December 31, 2021, the Group had operating lease costs from continuing operations of US$1,223 and recorded short-term lease costs of US$270. For the year ended December 31, 2022, the Group had operating lease costs from continuing operations of US$1,611 and recorded short-term lease costs of US$976. Cash paid for amounts included in the measurement of operating lease liabilities were US$52, US$735 and US$1,725 for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2022, the weighted average remaining lease term was 3.65 years and the weighted average discount rate was 3.35%. The impairment of right-of-use assets of US$387 for the year ended December 31, 2021, was related to the impairment of Loto Interactive due to the closure of data centers business in Sichuan, China and was recorded in the other operating expenses in the statement of comprehensive loss. 11. OPERATING LEASES (continued) The following table summarizes the maturity of operating lease liabilities as of December 31, 2022: US$ 2023 1,345 2024 1,134 2025 1,134 2026 850 Total 4,463 Less: imputed interest (259) Present value of lease liabilities 4,204 |
ACCOUNTS PAYABLES
ACCOUNTS PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS PAYABLES | |
ACCOUNTS PAYABLES | 12. ACCOUNTS PAYABLES Accounts payables consist of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Pool participants payable* 53,400 19,761 Utility and service cost payable 983 3,636 Others 55 28 54,438 23,425 * Pool participants payable represents payments to pool participants in the mining pool business which are settled in cryptocurrencies. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Advance from end users* 5,237 384 Deposit from customers** 3,965 1,302 Business tax and other taxes payable 255 228 Professional fees and services payable 4,033 1,762 Promotional events payables 394 370 Decoration payables — 670 Contingent consideration 1,247 — Others 3,607 439 18,738 5,155 * Advance from end users represents payments received by the Group in advance from the end users prior to the services to be provided. ** Deposit from customers represents payments received by the Group in advance from customers in the data center business. |
STATUTORY RESERVE AND RESTRICTE
STATUTORY RESERVE AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | 14. STATUTORY RESERVE AND RESTRICTED NET ASSETS The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant mainland China statutory laws and regulations permit payments of dividends by the Company’s mainland China subsidiaries only out of its retained earnings, if any, as determined in accordance with mainland China accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s mainland China subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and its Articles of Association, the Company’s mainland China subsidiaries, E-Sun Sky Computer and Guixinyanghang being foreign-invested enterprises established in the mainland China, are required to provide for certain statutory reserves, namely the general reserve fund, enterprise expansion fund and staff welfare and bonus fund, all of which are appropriated from net profit as reported in its mainland China statutory accounts. E-Sun Sky Computer and Guixinyanghang are required to allocate at least 10% of its after-tax profits In accordance with the China Company Laws, the Company’s mainland China domestic companies must make appropriations from their after-tax profits as reported in their mainland China statutory accounts to non-distributable reserve funds, namely statutory surplus fund, statutory public welfare fund and discretionary surplus fund. The mainland China domestic companies are required to allocate at least 10% of their after-tax profits to the statutory surplus fund until such fund has reached 50% of their respective registered capital. Appropriation to discretionary surplus is made at the discretion of each individual company. The general reserve fund and statutory surplus fund are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company. The staff welfare and bonus fund and statutory public welfare fund are restricted to the capital expenditures for the collective welfare of employees. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they available for distribution except under liquidation. 14. STATUTORY RESERVE AND RESTRICTED NET ASSETS (continued) Under mainland China laws and regulations, there are restrictions on the Company’s mainland China subsidiaries with respect to transferring certain of their net assets to the Company either in the form dividends, loans, or advances. Amounts restricted include paid-in capital and statutory reserve funds of the Company’s mainland China subsidiaries, as determined pursuant to mainland China generally accepted accounting principles, totaling approximately US$44,215 as of December 31, 2022. Therefore, in accordance with Rules 504 and 4.08(e)(3) of Regulation S-X, the condensed parent company only financial statements as of December 31, 2021 and 2022 and for each of the three years in the period ended December 31, 2022 are disclosed in Note 26. Furthermore, cash transfers from the Company’s mainland China subsidiaries to its subsidiaries outside of China are subject to mainland China government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the mainland China subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 15. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. USA Summit Bend, Ohio I, Ohio II and Asgard is incorporated in the USA. Under the current laws, profits tax in USA is generally assessed at the rate 21% of taxable income. British Virgin Islands Under the current laws of the British Virgin Islands, subsidiaries incorporated in British Virgin Islands are not subject to tax on income or capital gains. Curacao Multi Pay N.V. is incorporated in the Curacao, Under the current laws, profits tax in Curacao is generally assessed at the rate of 2% of taxable income. Malta Under the current laws, profits tax in Malta is generally assessed at the rate of 35% of taxable income. When dividend is paid or declared to the holding company, the paying entity is entitled to claim 6/7 of the profit tax paid as refund, which may effectively reduce income tax rate to 5%. Cyprus Round Spot Services Ltd is incorporated in Cyprus and does not conduct any substantive operations of its own. No provision for Cyprus income tax has been made in the financial statements as Round Spot Services Ltd had no assessable income for the years ended December 31, 2020, 2021 and 2022. 15. INCOME TAXES (continued) Hong Kong 500wan HK, Sunstar Technology and Skill Esport are incorporated in Hong Kong, under the current laws, profits tax in Hong Kong is generally assessed at the rate of 8.25% of taxable income up to HKD2,000 and assessed at the rate of 16.5% of taxable income over HKD2,000. Mainland China A new enterprise income tax law (the “EIT Law”) in mainland China was enacted and became effective on January 1, 2008. The EIT Law applies a uniform 25% enterprise income tax (“EIT”) rate Loss before income taxes from continuing operations consists of: 2020 2021 2022 US$ US$ US$ Cayman Islands (17,673) (7,732) (60,061) USA (80) (1,292) (31,506) Hong Kong (710) (26,926) (62,300) Japan (79) — — Malta (1,410) (1,152) (421) Curacao 160 114 (30) Cyprus (6) — — Mainland China (3,556) (28,824) (2,355) British Virgin Islands — — (1,754) (23,354) (65,812) (158,427) The current and deferred components of the income tax expense from continuing operations in the consolidated statements of comprehensive loss are as follows: 2020 2021 2022 US$ US$ US$ Current tax benefit (expense) (1) — — Deferred tax benefit 31 359 — Income tax benefit 30 359 — 15. INCOME TAXES (continued) The reconciliation of tax computed by applying the statutory income tax rate of 16.5% applicable to Hong Kong operations for 2022 and 2021, and 25% applicable to mainland China operations for 2020 to income tax benefit from continuing operations is as follows: 2020 2021 2022 US$ US$ US$ Loss before income taxes (23,354) (65,812) (158,427) Income tax computed at applicable tax rates (5,839) (10,859) (26,140) Effect of different tax rates in different jurisdictions 323 (858) (144) Non-deductible expenses 3,940 5,792 12,320 Change in valuation allowance 1,812 6,188 14,358 Effect of EIT reversal for previous years (22) (359) — Research and development super-deduction (235) (263) (394) Others (9) — — (30) (359) — The components of deferred taxes are as follows: 2021 2022 US$ US$ Deferred tax assets Loss from equity method investment 53 50 Bad debt provision 887 887 Impairment of long-lived asset 7,526 30,019 Net operating losses (“NOLs”) 16,286 26,477 Less: valuation allowance (24,752) (57,433) Total deferred tax assets, net — — The Group records a valuation allowance on its deferred tax assets that is sufficient to reduce the deferred tax assets to an amount that is more likely than not to be realized. Future reversal of the valuation allowance will be recognized either when the benefit is realized or when it has been determined that it is more likely than not that the benefit in future earnings will be realized. As of December 31, 2022, the Group had NOLs of approximately US$61,513 from mainland China subsidiaries, and US$43,342 from Hong Kong subsidiaries, which can be carried forward to offset future net profit for income tax purposes. The NOLs from mainland China subsidiaries as of December 31, 2022 will expire in years 2023 to 2027 if not utilized. The Group recorded a full valuation allowance against the deferred tax assets as we have determined that it was more likely than not that all of our deferred tax assets will not be realized in the future due to our continuing pre-tax and taxable losses. The cumulative amount of the temporary differences in respect of investments in foreign subsidiaries were nil as of December 31, 2021 and 2022. Upon repatriation of the foreign subsidiaries, in the form of dividends or otherwise, the Company would be subject to various mainland China income taxes including withholding income tax. The related unrecognized deferred tax liabilities were nil as of December 31, 2021 and 2022. The Group accounted for uncertainties in income taxes in accordance with ASC 740. The management evaluated the Group’s tax positions and concluded that no provision for uncertainty in income taxes was necessary as of December 31, 2021 and 2022. |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 16. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in mainland China participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the mainland China subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. Such employee benefits, which were expensed as incurred, amounted to approximately US$126, US$828 and US$1,020 for the years ended December 31, 2020, 2021 and 2022, respectively. |
SHARE-BASED PAYMENT
SHARE-BASED PAYMENT | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED PAYMENT | |
SHARE-BASED PAYMENT | 17. SHARE-BASED PAYMENT On March 28, 2011, the shareholders and board of directors of the Company approved the 2011 Share Incentive Plan (the “Plan”). The Plan provides for the grant of options, restricted shares and other share-based awards. These options were granted with exercise prices denominated in US$, which is the functional currency of the Company. The board of directors has authorized under the Plan the issuance of up to 12% of the Company’s issued and outstanding ordinary shares from time to time, on an as-exercised and fully diluted basis, upon exercise of awards granted under the Plan. The maximum term of any issued share option is ten years from the grant date. On March 28, 2021, the shareholders and board of directors of the Company approved the 2021 Share Incentive Plan (the “Plan”). The Plan provides for the grant of options, restricted shares and other share-based awards. These options were granted with exercise prices denominated in US$, which is the functional currency of the Company. The board of directors has authorized under the Plan the issuance of up to 12% of the Company’s issued and outstanding ordinary shares from time to time, on an as-exercised and fully diluted basis, upon exercise of awards granted under the Plan. The maximum term of any issued share option is ten years from the grant date. A summary of share option and restricted shares activity and related information for the years ended December 31, 2020, 2021 and 2022 are as follows: Share options granted to employees and directors Weighted Weighted Weighted average average average grant date remaining Aggregated Number of exercise fair value per contractual intrinsic options price share year value US$ US$ (Years) US$ Outstanding, January 1, 2020 26,001,220 0.96 1.25 0.71 1,590 Granted — — — — — Forfeited (18,616,300) 3.01 1.32 — — Exercised (125,900) 0.20 0.38 — 88 Outstanding, December 31, 2020 7,259,020 0.99 1.09 0.51 907 Granted — — — — — Expired (3,708,680) 2.70 1.15 — — Exercised (3,508,990) 0.71 1.00 — 524 Outstanding, December 31, 2021 41,350 0.40 0.97 1.81 9 Granted — — — — — Expired — — — — — Exercised — — — — — Outstanding, December 31, 2022 41,350 0.40 0.97 0.81 — Vested and expected to vest at December 31, 2022 41,350 0.40 0.97 0.81 — Exercisable at December 31, 2022 41,350 0.40 0.97 0.81 — 17. SHARE-BASED PAYMENT (continued) Restricted shares granted to employees and directors Weighted Weighted average average grant date remaining Aggregated Number of fair value contractual intrinsic options per share year value US$ (Years) US$ Outstanding, January 1, 2020 13,406,560 0.93 8.52 11,530 Granted 17,477,740 0.36 9.61 15,730 Forfeited — — — — Exercised — — — — Outstanding, December 31, 2020 30,884,300 0.62 8.98 27,796 Granted 25,777,390 0.42 9.55 15,827 Forfeited — — — — Exercised (34,632,130) 0.60 — 21,264 Outstanding, December 31, 2021 22,029,560 0.42 9.55 13,526 Granted — — — — Forfeited — — — — Exercised (22,029,560) (0.42) — 348 Outstanding, December 31, 2022 — — — — Vested and expected to vest at December 31, 2022 — — — — Exercisable at December 31, 2022 — — — — The aggregate intrinsic value in the table above represents the difference between the fair value of Company’s ordinary share as of December 31, 2021 and 2022 and the exercise price. As of December 31, 2022, there was no unrecognized share-based compensation costs related to equity awards granted to employees and directors that is expected to be recognized. As of December 31, 2022, there was no unrecognized restricted share compensation costs related to equity awards granted to employees that is expected to be recognized. Total share-based compensation expenses relating to options and restricted shares granted to employees and directors for the years ended December 31, 2020, 2021 and 2022 are included in: For the year ended December 31, 2020 Employees Directors Total US$ US$ US$ Sales and marketing 694 — 694 General and administrative 4,568 1,355 5,923 Service development expenses 1,430 — 1,430 6,692 1,355 8,047 17. SHARE-BASED PAYMENT (continued) Restricted shares granted to employees and directors (Continued) For the year ended December 31, 2021 Employees Directors Total US$ US$ US$ Cost of services 1,665 — 1,665 Sales and marketing 16 — 16 General and administrative 2,843 1,613 4,456 Service development expenses 309 — 309 4,833 1,613 6,446 For the year ended December 31, 2022 Employees Directors Total US$ US$ US$ Cost of services 1,372 — 1,372 General and administrative 919 2,046 2,965 Service development expenses 137 — 137 2,428 2,046 4,474 Warrant issued for private placement On July 12, 2021, the Company completed a private placement, in which it issued warrants to purchase up to 1,000,000 ADSs (given the effect of the ADS Ratio Change). Each warrant is exercisable for one ADS at an exercise price of US$68.10 per ADS (given the effect of the ADS Ratio Change). The warrants are exercisable six months following their issuance date and will expire on the 3rd anniversary of the issuance date. Also see Note 21. On June 27, 2022, the Company completed a private placement, in which it issued certain pre-funded warrants to purchase 480,000 ADSs (given the effect of the ADS Ratio Change), Series A warrants to purchase 1,600,000 ADSs (given the effect of the ADS Ratio Change) and Series B warrants to purchase 1,600,000 ADSs (given the effect of the ADS Ratio Change). The pre-funded warrants are exercisable immediately at an exercise price of US$0.10 per ADS (given the effect of the ADS Ratio Change) and were exercised in full in August 2022. Each Series A warrant is exercisable for one ADS at an exercise price of US$11.00 per ADS (given the effect of the ADS Ratio Change). The Series A warrants are immediately exercisable and will expire on the fifth anniversary of the issuance date. Each Series B warrant is exercisable for one ADS at an exercise price of US$10.00 per ADS (given the effect of the ADS Ratio Change). The Series B warrants are immediately exercisable and will expire on the 2½th anniversary of the issuance date. Also see Note 21. On August 16, 2022, the Company completed a private placement, in which it issued Series A warrants to purchase 1,556,667 ADSs (given the effect of the ADS Ratio Change) and Series B warrants to purchase 1,556,667 ADS (given the effect of the ADS Ratio Change). The Series A Warrants have an exercise price of US$6.60 per ADS (given the effect of the ADS Ratio Change), are immediately exercisable and will expire on the fifth anniversary of the issuance date. The Series B Warrants have an exercise price of US$6.00 per ADS (given the effect of the ADS Ratio Change), are immediately exercisable and will expire on the 2½th anniversary of the issuance date. Also see Note 21. 17. SHARE-BASED PAYMENT (continued) Warrant issued for private placement (continued) A summary of warrants and pre-funded warrants activity and related information for the years ended December 31, 2021 and 2022 are as follows: Weighted Average Class A Weighted Average Remaining Aggregate Ordinary Shares Exercise Price Contractual Life Intrinsic Value US$ (Years) US$ Outstanding, January 1, 2021 — — — — Granted 100,000,000 0.68 2.53 — Forfeited — — — — Exercised — — — — Outstanding, December 31, 2021 100,000,000 0.68 2.53 — Granted 679,333,300 0.09 3.31 — Forfeited — — — — Exercised (48,000,000) 0.07 — — Outstanding, December 31, 2022 731,333,300 0.17 3.07 — Vested and expected to vest at December 31, 2022 731,333,300 0.17 3.07 — Exercisable at December 31, 2022 731,333,300 0.17 3.07 — |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS Amounts due from related party – non-current As of December 31, 2021, the balance of prepayments to related party was in the amount of US$11,504. The balance consisted of prepayments for assets purchased from Viking Data Centers, the then minority interest shareholder of a subsidiary. In June 2022, the Company purchased all remaining equity interest of the subsidiary from Viking Data Centers and it ceased to be a related party of the Company. See Note 22 for detailed discussion. As of December 31, 2022, the amount due from related party was zero. 18. RELATED PARTY TRANSACTIONS (continued) Amounts due to related parties As of December 31, 2021, the balance of due to related parties was in the amount of US$8,021, which mainly consisted of (i) US$6,320 of the payable to the minority interest shareholders of a subsidiary for the remaining consideration of the asset acquisition of Asgard Data Centers; (ii) US$1,325 of the payable to the minority interest shareholders of a subsidiary for the data center operation costs; (iii) US$59 of the payment of property and equipment made by a former shareholder of a subsidiary of the Group on behalf of Loto Interactive; (iv) US$299 of payable for business cooperation expense due to a minority interest shareholder of a subsidiary of Loto Interactive, and (v) US$18 of the expense paid by a director of a subsidiary of the Group on behalf of Loto Interactive. In June 2022, the Company purchased all remaining equity interest of the subsidiary from Viking Data Centers and it ceased to be a related party of the Company. See Note 22 for detailed discussion. The amounts related to Loto Interactive Limited were disposed on July 25, 2022. See Note 5 for detailed discussion. As of December 31, 2022, the amount due to related parties was zero. Equity transaction with a related party Good Luck Information Technology Co., Limited (“Good Luck Information”), a company incorporated in Hong Kong, is controlled by Mr. Man San Vincent Law, a founder of the Company. In December 2020, the Company entered into a definitive share subscription agreement with Good Luck Information for the issuance and sale of 85,572,963 Class A ordinary shares for a total purchase price of approximately US$23,019. The per Class A ordinary share purchase price of US$0.269 is the closing trading price of the Company’s Class A ordinary shares on December 18, 2020, the last trading day immediately preceding the date of the purchase agreement. In January 2021, the Company determined that approximately 50% of the subscription price, or approximately US$11,500 shall be settled by U.S. dollars, with the remaining approximately 50% of the subscription price, or approximately US$11,519, being settled by bitcoins. The applicable bitcoin to U.S. dollars exchange rate was US$32,326.29 to one bitcoin, being the average of the closing trading prices for bitcoin published by Coinmarketcap for each of the 31 days ended January 20, 2021. On February 23, 2021, the Company closed the private placement transaction pursuant to the definitive share subscription agreement with Good Luck Information. The Company received 356.04342 bitcoins and US$11,500 in cash from Good Luck Information, and the Company issued 85,572,963 Class A ordinary shares to Good Luck Information. The fair value of the bitcoins on the date of closing is US$19,289. 18. RELATED PARTY TRANSACTIONS (continued) Equity transaction with a related party (continued) Effective as of April 5, 2021, the Company’s Board of Directors has appointed Mr. Man San Vincent Law as its Executive Director and authorized the Company to issue 65,000 Class A preference shares (the “Preference Shares”) at US$1.0 per share, for a total consideration of US$65,000, to Good Luck Capital Limited (“Good Luck”), a BVI company wholly-owned by Mr. Law. Following the issuance of the Preference Shares, Mr. Man San Vincent Law’s aggregate voting power increased from approximately 17.66% to approximately 54.90% (based on the Company’s total outstanding share capital as of December 31, 2021) and assuming issuance of all shares under the Share Exchange Agreement). The following is a summary of the key terms associated with the Preference Shares. (1) The voting power of each Preference Share is equal to that of 10,000 Class A ordinary shares of the Company, subject to proportional reduction commensurate with the number of Class A ordinary shares beneficial owned by Good Luck; (2) The Preference Shares cannot be converted into Class A ordinary shares, Class B ordinary shares, or ADRs; (3) The Preference Shares are not entitled to receive dividends; (4) If Good Luck transfers the Preference Shares to a third party which is not an affiliate of Good Luck, or when Good Luck ceases to be controlled by any person holding executive office in or being a member of the board of director of the Company, Class A Preference Shares shall cease to have any voting right and (5) If Mr. Law ceases to serve as a director of the Company, the Company shall be entitled to redeem the Class A Preference Shares at the original subscription price. Related Party transactions For the year For the year For the year ended ended ended December 31, December 31, December 31, 2020 2021 2022 US$ US$ US$ Interest from loan to Loto Interactive Information 20 — — Other operating income from management service provided to Loto Interactive Information 32 — — Data center operation costs for services provided by a minority interest shareholder of a subsidiary — 1,325 9,108 52 1,325 9,108 During the year ended December 31, 2020, the Company also paid expense on behalf of Loto Interactive in the amount of US$17. As of December 31, 2020, Loto Interactive has repaid the full amount to the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Contractual arrangements among the Company and the former VIEs Under applicable tax laws and regulations in mainland China, arrangements and transactions among related parties may be subject to audit or scrutiny by the tax authorities in mainland China within ten years after the taxable year when the arrangements or transactions are conducted. The Company could face material and adverse tax consequences if the tax authorities in mainland China were to determine that the Contractual Arrangements among the Company and the respective VIEs were not entered into on an arm’s-length basis and therefore constituted unfavorable transfer pricing arrangements. Unfavorable transfer pricing arrangements could, among other things, result in an upward adjustment on taxation. In addition, the tax authorities in mainland China may impose interest on late payments on the Company and the respective VIEs for the adjusted but unpaid taxes. In the opinion of management, the likelihood of such an upward adjustment on taxation and related interest is remote based on current facts and circumstances. Guarantees The Group accounts for guarantees in accordance with ASC topic 460 (“ASC 460”), “ Guarantees” The memorandum and articles of association of the Company require that the Company indemnify its officers and directors, as well as those who act as directors and officers of other entities at the Company’s request, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with any proceedings arising out of their services to the Company. The indemnification obligations are more fully described in the memorandum and articles of association. The Company purchases standard directors’ and officers’ insurance to cover claims or a portion of the claims made against its directors and officers. Since a maximum obligation is not explicitly stated in the Company’s memorandum and articles of association and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, the Group has not been required to make payments related to these obligations, and the fair value for these obligations is zero as of December 31, 2021 and 2022. Indemnity cost There was no indemnity cost occurred in 2020, 2021 and 2022. Legal proceedings From time to time, the Group is subject to legal proceedings and claims in the ordinary course of business. The Group records a liability when it is both probable that a liability will be incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis and has not recorded any material liabilities in this regard during 2020, 2021 and 2022. Operating lease commitments The information of lease commitments is provided in Note 11. |
LOSSES PER SHARE
LOSSES PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
LOSSES PER SHARE | |
LOSSES PER SHARE | 20. LOSSES PER SHARE Basic and diluted losses per share for each of the years presented is calculated as follows: For the years ended December 31, 2020 2021 2022 US$ US$ US$ US$ US$ US$ Class A Class B Class A Class B Class A Class B Losses per share from continuing operations—basic: Numerator: Allocation of net loss from continuing operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating losses per ordinary share—basic (23,278) (46) (53,661) — (155,415) — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic losses per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Denominator used for losses per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Losses per share from continuing operations — basic (0.05) (0.05) (0.09) — (0.18) — Losses per share from continuing operations—diluted: Numerator: Allocation of net loss from continuing operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating loss per ordinary share— diluted (23,278) (46) (53,661) — (155,415) — Reallocation of net loss from continuing operations attributable to BIT Mining Limited’s ordinary shareholders as a result of conversion of Class B to Class A shares (46) — — — — — Net loss from continuing operations attributable to ordinary shareholders (23,324) (46) (53,661) — (155,415) — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic losses per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Conversion of Class B to Class A ordinary shares 847,093 — 99 — 99 — Denominator used for losses per share 430,011,263 847,093 622,337,974 99 871,036,499 99 Losses per share from continuing operations—diluted (0.05) (0.05) (0.09) — (0.18) — Losses from continuing operations per ADS*: Denominator used for losses per ADS - basic 4,291,642 — 6,223,379 — 8,710,364 — Denominator used for losses per ADS - diluted 4,300,113 — 6,223,380 — 8,710,365 — Losses from continuing operations per ADS – basic (5.42) — (8.62) — (17.84) — Losses from continuing operations per ADS – diluted (5.42) — (8.62) — (17.84) — 20. LOSSES PER SHARE (continued) For the years ended December 31, 2020 2021 2022 US$ US$ US$ US$ US$ US$ Class A Class B Class A Class B Class A Class B Losses per share from discontinued operations—basic: Numerator: Allocation of net loss from discontinued operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating losses per ordinary share—basic (9,070) (18) (8,742) — — — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic loss per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Denominator used for loss per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Losses per share from discontinued operations — basic (0.02) (0.02) (0.01) — — — Losses per share from discontinued operations—diluted: Numerator: Allocation of net loss from discontinued operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating loss per ordinary share— diluted (9,070) (18) (8,742) — — — Reallocation of net loss from discontinued operations attributable to BIT Mining Limited’s ordinary shareholders as a result of conversion of Class B to Class A shares (18) — — — — — Net loss from discontinued operations attributable to ordinary shareholders (9,088) (18) (8,742) — — — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic loss per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Conversion of Class B to Class A ordinary shares 847,093 — 99 — 99 — Denominator used for loss per share 430,011,263 847,093 622,337,974 99 871,036,499 99 Losses per share from discontinued operations—diluted (0.02) (0.02) (0.01) — — — Losses from discontinued operations per ADS *: Denominator used for loss per ADS - basic 4,291,642 — 6,223,379 — 8,710,364 — Denominator used for loss per ADS - diluted 4,300,113 — 6,223,380 — 8,710,365 — Losses from discontinued operations per ADS – basic (2.11) — (1.40) — — — Losses from discontinued operations per ADS – diluted (2.11) — (1.40) — — — * American Depositary Shares, which are traded on the NYSE. Each ADS represents one hundred Class A ordinary shares of the Company. Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, to the current ADS Ratio of 1 ADS to 100 Class A ordinary shares, effective on December 23, 2022. |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
EQUITY TRANSACTIONS | |
EQUITY TRANSACTIONS | 21. EQUITY TRANSACTIONS The authorized share capital consisted of 2,000,000,000 ordinary shares at a par value of US$0.00005 per share, of which 1,599,935,000 shares were designated as Class A ordinary shares, 65,000 shares as Class A preference shares and 400,000,000 as Class B ordinary shares. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to ten votes per share and is convertible into one Class A ordinary share at any time by the holder thereof. The voting power of each Class A preference share is equal to that of 10,000 Class A ordinary shares. The Class A preference shares cannot be converted into Class A ordinary shares, Class B ordinary shares, or ADRs and are not entitled to receive dividends. 21. EQUITY TRANSACTIONS (continued) The Company’s Board of Directors has appointed Mr. Man San Vincent Law as its Executive Director, effective as of April 5, 2021, and authorized the Company to issue 65,000 Class A preference shares (the “Preference Shares”) at US$1.0 per share, for a total consideration of US$65,000, to Good Luck Capital Limited (“Good Luck”), a company wholly-owned by Mr. Law. Following the issuance of the Preference Shares, Mr. Man San Vincent Law’s aggregate voting power increased from approximately 17.66% to approximately 44.17%(based on the Company’s total outstanding share capital as of December 31, 2022) and assuming issuance of all shares under the Share Exchange Agreement). See more detail in Note 18. In 2020, 125,900 share options were exercised at the exercise prices of US$0.2 per share, resulting in the issuance of 125,900 Class A ordinary shares at US$0.00005 each for an aggregate consideration of US$27. During the year of 2020, 10,000,000 Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2020, 430,127,692 and 99 Class A and Class B ordinary shares were issued outstanding In 2021, 3,508,990 share options were exercised at the exercise prices of US$0.2 to US$1.0 per share resulting in the issuance of 3,508,990 Class A ordinary shares at US$0.00005 each for an aggregate consideration of US$2,496, and 34,632,130 restricted shares were vested and exercised without exercise prices. During the year ended December 31, 2021, 185,572,963 Class A ordinary shares were issued for private placement and 56,236,295 Class A ordinary shares were issued for business combinations. As of December 31, 2021, 710,078,070 and 99 Class A and Class B ordinary shares were issued and outstanding, respectively. In 2022, 22,029,560 restricted shares were vested and exercised without exercise price. On May 31, 2022, 16,038,930 Class A ordinary shares were issued for the asset acquisition. See Note 5 for detailed discussion. On July 12, 2021, the Company completed a private placement, in which it has offered (1) 1,000,000 ADSs (given the effect of the ADS Ratio Change), (2) warrants to purchase up to 1,000,000 ADSs (given the effect of the ADS Ratio Change). The combined purchase price of each ADS and the accompanying warrants is US$50.00 (given the effect of the ADS Ratio Change). Each warrant is exercisable for one ADS at an exercise price of US$68.10 per ADS (given the effect of the ADS Ratio Change). On June 27, 2022, the Company completed a private placement, in which it has offered (1) 1,120,000 ADSs (given the effect of the ADS Ratio Change), (2) certain pre-funded warrants to purchase 480,000 ADSs (given the effect of the ADS Ratio Change) (the “Pre-Funded Warrants”) in lieu of the ADSs being offered, and (3) certain warrants including (i) Series A warrants to purchase up to 1,600,000 ADSs (the “Series A Warrants”) (given the effect of the ADS Ratio Change) and (ii) Series B warrants to purchase up to 1,600,000 ADSs (the “Series B Warrants”) (the Series A Warrants and Series B Warrants are collectively referred as the “Warrants”) (given the effect of the ADS Ratio Change), to certain institutional investors. The Warrants are offered together with the ADSs or the Pre-Funded Warrants. The combined purchase price of each ADS and the accompanying Warrants is US$10.00 (given the effect of the ADS Ratio Change). The combined purchase price of each Pre-Funded Warrant and the accompanying Warrants is US$9.90. Each Pre-Funded Warrant is exercisable for one ADS at an exercise price of US$0.10 (given the effect of the ADS Ratio Change). The Pre-Funded Warrants have been exercised in full in August 2022. Each Series A Warrants and Series B warrants is exercisable for one ADS at an exercise price of US$11.00 (given the effect of the ADS Ratio Change) and US$10.00 (given the effect of the ADS Ratio Change), respectively. 21. EQUITY TRANSACTIONS (continued) On August 19, 2022, the Company completed a private placement, in which it has offered (1) 1,556,667 ADSs (given the effect of the ADS Ratio Change), (2) certain warrants including (i) Series A warrants to purchase up to 1,556,667 ADSs (the “Series A Warrants”) (given the effect of the ADS Ratio Change) and (ii) Series B warrants to purchase up to 1,556,667 ADSs (the “Series B Warrants”) (the Series A Warrants and Series B Warrants are collectively referred as the “Warrants”) (given the effect of the ADS Ratio Change), to certain institutional investors. The combined purchase price of each Warrants is US$6.00 (given the effect of the ADS Ratio Change). Each Series A Warrants and Series B warrants is exercisable for one ADS at an exercise price of US$6.60 (given the effect of the ADS Ratio Change) and US$6.00 (given the effect of the ADS Ratio Change), respectively. Effective on December 23, 2022, the ratio of the ADS to its ordinary shares changed from 1 ADS representing 10 Class A ordinary shares to 1 ADS representing 100 Class A ordinary shares (“ADS Ratio Change”). The ADS Ratio Change affected all ADS holders uniformly and did not reduce any ADS holder’s percentage ownership interest. Proportionate voting rights and other rights and preferences of the ADS holders were not reduced by the ADS Ratio Change. All ADS and per ADS data have been retrospectively adjusted to give effect to the ADS Ratio Change. As of December 31 2022, 1,063,813,210 and 99 Class A and Class B ordinary shares were issued outstanding |
PURCHASE OF NONCONTROLLING INTE
PURCHASE OF NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
PURCHASE OF NONCONTROLLING INTEREST | |
PURCHASE OF NONCONTROLLING INTEREST | 22. PURCHASE OF NONCONTROLLING INTEREST In September 2021, the Company entered into a Membership Interest Purchase Agreement and certain other auxiliary agreements with Viking Data Centers, LLC (“Viking Data Centers”) to acquire the 51% equity interest in Asgard Data Centers LLC (“Asgard”), which intended to operate a cryptocurrency mining data center in Ohio (the “Ohio Mining Site”). In October 2021, the Company increased its equity interest ownership in the Ohio Mining Site to 55%. The Ohio mining site has a total planned power capacity up to 150 megawatts (“MW”). In June 2022, the Company entered into an agreement with Viking Data Centers that the Company agreed to purchase all remaining equity interest from Viking Data Centers for approximately US$17,785, by transferring certain assets that represent 67.5MW, or 45%, of total planned power capacity at the Ohio Mining Site. After completion of the transaction, the Company has exclusive access to 82.5MW of planned electrical power and Viking Data Centers has exclusive access to the remaining 67.5MW, in accordance to their respective equity ownership immediately prior to the transaction. The following table summarizes the assets transferred: Amount US$ Construction in progress 5,863 Other non-current assets 4,902 Intangible assets, net 7,020 Total 17,785 Net book value of the noncontrolling interest purchased was approximately US$16,689 and the difference between the assets transferred and net book of the noncontrolling interest purchased was recognized in additional paid-in capital. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 23. FAIR VALUE MEASUREMENT As of December 31, 2021, information about inputs into the fair value measurement of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair value measurement at December 31, 2021 Quoted prices in active Total fair markets for Significant other Significant value at identical observable unobservable December 31, assets inputs inputs 2021 (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Description Liabilities Contingent consideration 1,247 — — 1,247 Total liabilities 1,247 — — 1,247 The Group’s financial liability based on Level 3 inputs consists of a contingent consideration arrangement related to the acquisition of BTC.com Pool Business. The Company is contractually obligated to pay contingent consideration payments to Blockchain Alliance Holding if BTC.com Pool Business realizes certain net profit. The contingent consideration is settled as of December 31, 2022. As of December 31, 2022, the Group has no asset or liability measured at fair value on a recurring basis. The Group measures certain financial assets, including the investment under the measurement alternative method and equity method at fair value on a nonrecurring basis only if they were determined to be impaired. The Group’s non-financial assets, such as intangible assets, cryptocurrency assets, goodwill and property and equipment, would be measured at fair value when an impairment charge is recognized. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 24. SEGMENT REPORTING The Group continually monitors the reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. In December 2020, the Group announced the entrance into the cryptocurrency industry. As of December 31, 2021, the Group has completed the transformation of its business to become a cryptocurrency mining enterprise. In accordance with ASC topic 280, “Segment Reporting”, the Group’s chief operating decision maker has been identified as the Board of Directors and the chief executive officer, who makes resource allocation decisions and assesses performance based on the different business operating results. As a result, the Group has three reportable segments since 2021, including the mining pool business, the data center business and the cryptocurrency mining. The Group’s other business, mainly consisting of online gaming in Europe, was not material for the years ended December 31, 2021 and 2022. 24. SEGMENT REPORTING (continued) The following table presents summary information by segment for continuing operations for the years ended December 31, 2020, 2021 and 2022, respectively. For the years ended December 31, 2020 2021 2022 US$ US$ US$ Reportable segment revenues: Mining pool 1 — 1,310,970 636,937 Data center — 14,593 17,580 Cryptocurrency mining — 39,429 46,839 Others 2,167 2,516 199 Inter-segment 2 — (38,632) (51,328) Total segment and consolidated revenues 2,167 1,328,876 650,227 Reportable segment cost of revenue-exclusive depreciation and amortization: Mining pool — (1,315,621) (635,300) Data center — (10,982) (12,673) Cryptocurrency mining — (14,900) (28,119) Others (1,787) (1,667) (3,425) Inter-segment 2 — 38,632 51,328 Total segment and consolidated cost of revenue-exclusive depreciation and amortization (1,787) (1,304,538) (628,189) Reportable segment cost of revenue-depreciation and amortization: Mining pool — (4,148) (9,090) Data center — (3,269) (1,485) Cryptocurrency mining — (11,649) (21,448) Others (229) (106) (2) Inter-segment 3 — 295 — Total segment and consolidated cost of revenue-depreciation and amortization (229) (18,877) (32,025) Total segment and consolidated cost (2,016) (1,323,415) (660,214) Reconciling items: Operating expenses (17,419) (29,569) (27,084) Other operating income 534 8,140 590 Government grant 21 — 29 Other operating expenses (273) (14,686) (5,477) Net gain on disposal of cryptocurrency assets — 11,392 8,360 Impairment of cryptocurrency assets — (38,319) (18,435) Changes in fair value of derivative instrument — 3,696 — Impairment of property and equipment — (22,392) (35,224) Changes in fair value of contingent considerations — 13,936 1,247 Impairment of intangible assets — (56) (56,094) Impairment of goodwill — — (26,569) Inter-segment 3 — (7,840) — Operating loss (16,986) (70,237) (168,644) Other income, net 42 594 9,031 Interest income 242 56 150 Interest expense — (775) (218) Loss from equity method investments (1,865) (1,184) 164 Gain on previously held equity interest — 5,500 — Impairment of long-term investments (4,787) — (2,250) Gain from disposal of subsidiaries — 234 3,340 Income tax benefit 30 359 — Net loss (23,324) (65,453) (158,427) 24. SEGMENT REPORTING (continued) 1 The mining pool revenues for the year ended December 31, 2022 include US $535,890 from providing primary mining pool services and US $101,047 from providing sub mining pool services. The mining pool revenues for the year ended December 31, 2021 were all from providing primary mining pool services. See Note 2 – Revenue recognition for additional information. 2 The inter-segment eliminations mainly consist of (a) cryptocurrency mining revenue of US $35,864 and US $43,735 generated from computing power provided by cryptocurrency mining segment to mining pool segment for the years ended December 31, 2021 and 2022, respectively and corresponding cost of revenue of US $35,864 and US $43,735 incurred by mining pool segment for the years ended December 31, 2021 and 2022, respectively, and (b) data center revenue of US $2,768 and US$ 7,593 generated from data center services provided by data center segment to cryptocurrency mining segment for the years ended December 31, 2021 and 2022, respectively, and corresponding data center services cost of US $2,768 and US $7,593 incurred by cryptocurrency mining segment for the years ended December 31, 2021 and 2022, respectively, which have been eliminated upon consolidation. 3 The inter-segment eliminations mainly consist of internal transfer costs related to the transfer of cryptocurrency mining machines out of China, all of which have been eliminated upon consolidation. The following table presents the revenue from continuing operations by geographical locations for the years ended December 31, 2020, 2021 and 2022, respectively. For the year ended December 31 Revenues 2020 2021 2022 US$ US$ US$ Hong Kong — 40,035 47,038 USA — 2,829 17,580 Europe 2,167 2,214 — Mainland China — 11,460 — British Virgin Islands — — 492,155 Cayman Islands — — 2,898 Blockchain — 1,310,970 141,884 Inter-segment — (38,632) (51,328) 2,167 1,328,876 650,227 The following table presents the long-lived assets (including property and equipment, net and right-of-use assets) by geographical locations as of December 31, 2021 and December 31, 2022, respectively. Long-lived assets As of December 31, 2021 As of December 31, 2022 US$ US$ USA 35,873 29,317 Hong Kong 31,745 1,365 Mainland China 6,435 300 Kazakhstan 2,310 373 Europe 2 — 76,365 31,355 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 25. SUBSEQUENT EVENTS Grant and Vesting of Restricted Shares On January 3, 2023, the Company granted 474,190 ADSs, or 47,419,000 Class A ordinary shares, as restricted shares under the Company’s 2021 Share Incentive Plan to certain employees, directors, and consultants of the Company. On March 10, 2023, 47,419,000 restricted shares were vested and exercised without exercise price. Sale of Remaining Shares of Loto Interactive Limited On March 15, 2023, the Company entered into a share sale and purchase agreement with an unaffiliated third party (the “Buyer”), pursuant to which the Company agreed to sell, and the Buyer agreed to purchase, all of the Company’s remaining share ownership in Crypto Flow Technology Limited (“Crypto Flow”), previously known as Loto Interactive Limited, namely, 48,195,605 shares of Crypto Flow, representing approximately 8.79% of the total issued share capital of Crypto Flow, at the price of HK$0.38 per share for the total consideration of HK$18,314 (US$2,333) which was fully received on March 16, 2023. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 26. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test on the restricted net assets of the consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only. The subsidiaries did not pay any dividend to the Company for the periods presented. Certain information and note disclosures generally included in the financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The note disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. As of December 31, 2022, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements. 26. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (continued) The following is the condensed financial information of the Company on a parent company only basis. Condensed balance sheets As of As of December 31, December 31, 2021 2022 US$ US$ ASSETS Current assets: Cash and cash equivalents 126 137 Short-term investment — 2,360 Cryptocurrency assets 16,807 2,811 Other current assets 44,362 32,285 Amounts due from intergroup companies 95,697 169,459 Total current assets 156,992 207,052 Non-current assets: Investment in subsidiaries and VIEs 37,355 (129,151) Intangible assets, net 140 125 Total non-current assets 37,495 (129,026) TOTAL ASSETS 194,487 78,026 As of As of December 31, December 31, 2021 2022 US$ US$ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued payroll and welfare payable 73 159 Accrued expenses and other liabilities 3,531 619 Amounts due to intergroup companies 10,993 24,120 Total current liabilities 14,597 24,898 TOTAL LIABILITIES 14,597 24,898 Shareholders’ equity: Class A ordinary shares, par value US $0.00005 per share; 1,599,935,000 shares authorized as of December 31, 2021 and December 31, 2022; 710,078,070 and 1,063,813,210 shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively 36 54 Class A preference shares, par value US $0.00005 per share; 65,000 shares authorized as of December 31, 2021 and December 31, 2022; 65,000 shares issued and outstanding as of December 31, 2021 and December 31, 2022 — — Class B ordinary shares, par value US $0.00005 per share; 400,000,000 shares authorized as of December 31, 2021 and December 31, 2022; 99 shares issued and outstanding as of December 31, 2021 and December 31, 2022 — — Additional paid-in capital 590,567 620,807 Treasury shares (21,604) (21,604) Accumulated other comprehensive loss (2,355) (3,960) Accumulated deficit and statutory reserve (386,754) (542,169) Total shareholder’s equity 179,890 53,128 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 194,487 78,026 26. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (continued) Condensed statements of comprehensive loss For the years ended December 31, 2020 2021 2022 US$ US$ US$ Revenues — 39,414 40,274 Operating costs and expenses: Cost of revenue — (6,279) (15,595) Sales and marketing expenses (4) (244) (72) General and administrative expenses (8,347) (8,047) (3,307) Total operating costs and expenses (8,351) (14,570) (18,974) Net loss on disposal of cryptocurrency assets — (6,582) (9,349) Impairment of cryptocurrency assets — (4,436) (7,360) Operating profit (loss) (8,351) 13,826 4,591 Interest income 34 9 — Interest expense — (708) (60) Equity in loss of subsidiaries and VIEs (24,095) (75,530) (159,946) Loss before income tax (32,412) (62,403) (155,415) Net loss (32,412) (62,403) (155,415) Other comprehensive income (loss) Foreign currency translation gain (loss) 2,317 1,481 (1,605) Reclassification into loss of loss from equity method investments — 131 — Share of other comprehensive (loss) income from an equity method investee (177) 631 — Comprehensive loss (30,272) (60,160) (157,020) Condensed statements of cash flows For the years ended December 31, 2020 2021 2022 US$ US$ US$ Net cash used in operating activities (2,606) (135,484) (12,259) Net cash (used in) provided by investing activities (1,842) 33,227 9,925 Net cash provided by financing activities 4,081 101,873 2,345 Net decrease (increase) in cash and cash equivalents (367) (384) 11 Cash and cash equivalents at beginning of the year 877 510 126 Cash and cash equivalents at end of the year 510 126 137 26. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (continued) Basis of presentation Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company used the equity method to account for its investment in its subsidiaries and the former VIEs. The parent company records its investment in its subsidiaries and the former VIEs under the equity method of accounting as prescribed in ASC 323, “ Investments-Equity Method and Joint Ventures”. The parent company’s condensed financial information should be read in conjunction with the Group’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, allowance for credit losses, useful lives of property and equipment and intangible assets, impairment of long-lived assets, long-term investments and goodwill, the valuation of cryptocurrencies, realization of deferred tax assets, uncertain income tax positions, share-based compensation, valuation of contingent consideration from business combination and purchase price allocation for business combinations and asset acquisitions. Actual results could materially differ from those estimates. |
Principles of consolidation | Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries. The results of the subsidiaries are consolidated from the date on which the Company obtains control and continue to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All significant intercompany balances and transactions among the Company and its subsidiaries have been eliminated on consolidation. |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements During the preparation of this Annual Report, the Company identified and corrected an immaterial error related to the impairment calculation of cryptocurrency assets. The Company has been historically calculating the impairment of cryptocurrency assets on a daily basis using a spot price at a standard cutoff time. The Company determined such a method was not in compliance with ASC 350-30-35-19 which requires the recognition of impairment when carrying value exceeds fair value. The Company further determined that the intraday lowest quoted price should be utilized in calculating impairment of the Company’s cryptocurrency assets. Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements For the year ended December 31, 2021 As Effect of Consolidated Statement of Comprehensive Loss Reported Adjustment As Revised Net gain on disposal of cryptocurrency assets $ 6,717 $ 4,675 $ 11,392 Impairment of cryptocurrency assets (31,757) (6,562) (38,319) Operating loss from continuing operations (68,350) (1,887) (70,237) Loss before income tax from continuing operations (63,925) (1,887) (65,812) Net loss from continuing operations (63,566) (1,887) (65,453) Net loss (72,487) (1,887) (74,374) Net loss attributable to BIT Mining Limited (60,516) (1,887) (62,403) Losses per share for Class A and Class B ordinary shares outstanding-Basic and Diluted: Net loss from continuing operations (0.08) (0.01) (0.09) Net loss (0.09) (0.01) (0.10) Losses per American Depositary Share ("ADS*") (1 ADS represents 100 Class A ordinary shares)-Basic and Diluted: Net loss from continuing operations (8.32) (0.30) (8.62) Net loss (9.72) (0.30) (10.02) * American Depositary Shares, which are traded on the NYSE. Each ADS represents one hundred Class A ordinary shares of the Company. Note: Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, to the current ADS Ratio of 1 ADS to 100 Class A ordinary shares, effective on December 23, 2022. For the year ended December 31, 2021 Consolidated Statement of Cash Flows As Reported Effect of Adjustment As Revised Net loss $ (72,487) $ (1,887) $ (74,374) Impairment of cryptocurrency assets 31,757 6,562 38,319 Net gain on disposal of cryptocurrency assets (6,717) (4,675) (11,392) For the year ended December 31, 2021 Consolidated Statement of Changes in Accumulated deficit and Total shareholders' Shareholders' Equity statutory reserve equity Net loss for the year (as reported) $ (60,516) $ (72,487) Net loss for the year (effect of adjustment) (1,887) (1,887) Net loss for the year (as revised) (62,403) (74,374) Balance as of December 31, 2021 (as reported) (384,867) 207,150 Balance as of December 31, 2021 (effect of adjustment) (1,887) (1,887) Balance as of December 31, 2021 (as revised) (386,754) 205,263 |
Foreign currency translation and change in reporting currency | Foreign currency translation and change in reporting currency The functional currency of the Company, BVI, 500wan HK, Bee Computing, Alliance Technologies, Sunstar Technology, Skill Esport, Summit Bend, Ohio I, Ohio II and Asgard is the US$. The functional currency of the Multi Group and its subsidiaries is EUR. The functional currency of Loto Interactive and its subsidiaries is HKD. E-Sun Sky Computer with its former VIEs and Beijing Guixinyanghang determined their functional currencies to be RMB, which is their respective local currencies based on the criteria of ASC 830, “ Foreign Currency Matters” Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Exchange gains and losses resulting from foreign currency transactions are included in the consolidated statements of comprehensive loss. Starting from the third quarter of 2021, the Group changed its reporting currency from RMB to US$, to reduce the impact of increased volatility of the US$ to RMB exchange rate on the Group’s reported operating results. The aligning of the reporting currency with the underlying operations will better depict the Group’s results of operations for each period. The related financial statements prior to July 1, 2021 have been recasted to US$ as if the financial statements originally had been presented in US$ since the earliest periods presented. The change in reporting currency resulted in cumulative foreign currency translation gain to the Group’s comprehensive loss of US$2,317 and US$1,481 for the years ended December 31, 2020 and 2021, respectively. |
Business combinations, asset acquisitions and noncontrolling interests | Business combinations, asset acquisitions and noncontrolling interests The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805 (“ASC 805”), “ Business Combinations” If investment involves the acquisition of an asset or group of assets that does not meet the definition of a business, the transaction is accounted for as an asset acquisition. An asset acquisition is recorded at cost, which includes capitalized transaction costs, and does not result in the recognition of goodwill. The cost of the acquisition is allocated to the assets acquired on the basis of relative fair values. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual legal criterion or the separability criterion. Identifiable intangible assets recognized in the Company’s acquisitions generally include brand name, strategic contract and unpatented technology. For the Company’s majority-owned subsidiaries, noncontrolling interests are recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. “Net loss” on the consolidated statements of comprehensive loss include the “net loss attributable to noncontrolling interests”. The cumulative results of operations attributable to non-controlling interests are also recorded as noncontrolling interests in the Company’s consolidated balance sheets. The Group recognized changes in fair value of contingent consideration in the amount of a gain of US$13,936 and US$1,247 during the years ended December 31, 2021 and 2022, respectively, which was related to the remeasurement of the contingent consideration from the acquisition of Alliance International Technologies Limited, which operates the mining pool under the brand of BTC.com. The contingent consideration is settled as of December 31, 2022. See Note 5 for detailed discussion. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand and time deposits, which have original maturities of three months or less when purchased and which are unrestricted as to withdrawal and use. In addition, highly liquid investments which have original maturities of three months or less when purchased are classified as cash equivalents. |
Restricted cash | Restricted cash Restricted cash represents cash held by banks which were granted by the government and designated only for certain approved projects and deposits in merchant banks where withdrawals are currently restricted. |
Short-term investments | Short-term Investment Short-term investment represents fixed coupon notes with original maturities of greater than three months but less than a year. |
Allowance for doubtful accounts | Allowance for doubtful accounts Receivables are carried at original invoiced amount less an allowance for doubtful accounts when collection of the amount is no longer probable. Collateral is not typically required, nor is interest charged on receivables. Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Group used a modified retrospective approach and the adoption does not have an impact on the Group’s consolidated financial statements. The Group’s accounts receivable and other receivables are within the scope of ASC Topic 326. To estimate expected credit losses, the Group has identified the relevant risk characteristics of the receivables which include size and nature. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions and future economic conditions (external data and macroeconomic factors). This is assessed at each quarter based on the Group’s specific facts and circumstances. There have been no significant changes in the assumptions since adoption. |
Cryptocurrency assets | Cryptocurrency assets Cryptocurrency assets are included in current assets in the accompanying consolidated balance sheets. Cryptocurrency assets generated from the cryptocurrency mining business and the mining pool business are accounted for in connection with the Group’s revenue recognition policy disclosed below. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment quarterly, or more frequently, when events or changes in circumstances occur, principally decreases in the quoted prices of the cryptocurrencies, indicating that it is more likely than not that the indefinite-lived asset is impaired. In determining if an impairment has occurred, the Company considers the intraday lowest quoted price of one unit of cryptocurrency asset since acquiring the cryptocurrency asset. If the then current carrying value of the unit of cryptocurrency exceeds the fair value so determined, an impairment loss has occurred with respect to those units of cryptocurrencies in the amount equal to the difference between their carrying values and the fair value determined. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For the years ended December 31, 2020, 2021 and 2022, the Group recognized impairment loss of nil , US$ 38,319 and US $18,435 , respectively. Cryptocurrencies generated from the cryptocurrency mining business and the mining pool business as well as the cryptocurrencies distributed to mining pool participants are included within operating activities in the accompanying consolidated statements of cash flows. The sales of cryptocurrencies are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in gain or loss of disposal of cryptocurrencies in the consolidated statements of comprehensive loss. The Group accounts for its gains or losses in accordance with the first-in-first-out (FIFO) method of accounting. The Company also enters into transactions to transfer cryptocurrencies to pay for operating expense and to acquire certain assets. Such transactions are accounted for in accordance with ASC 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets”. Under ASC 610-20, if the Group does not have a controlling financial interest in the entity that holds the cryptocurrency and the arrangement meets the criteria to be accounted for as a contract, the Group would de-recognize the cryptocurrency and recognize a gain or loss on the transfer of the cryptocurrency when control of the cryptocurrency transfers to the counterparty. The gain or loss is measured as the difference between the amount of consideration allocated to the cryptocurrency and its carrying amount. For the years ended December 31, 2020, 2021 and 2022, the gain or loss recorded on such transactions was nil. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Estimated Residual Machinery and equipment-data center equipment 5 years 5 % Machinery and equipment- mining machine and other equipment 2-3 years — Electronics and office equipment 3-5 years 5 % Motor vehicles 5-10 years 5 % Leasehold improvements Shorter of lease term or the estimated useful lives of the assets — Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. |
Intangible assets | Intangible assets Intangible assets represent computer software, internet domain name, licensing agreement, and intangible assets arising from business combination and asset acquisitions. Computer software, internet domain name and licensing agreement purchased from third parties are initially recorded at cost and amortized on a straight-line basis over their estimated useful lives of the respective assets. The Group performs valuation of the intangible assets arising from business combination to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated useful life of the assets. Estimated useful lives of the respective assets are set out as follows: Category Estimated Useful Life Computer software 3-10 years Internet domain name 10 years Licensing agreement Agreement term Intangible assets arising from business combination and asset acquisitions Licenses and brand name 10 years Mobile applications and software 5 years Internet domain name and brand name 10 years Strategic contract 5 years Unpatented technology 3 years |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. The Group assesses goodwill for impairment in accordance with ASC 350-20 (“ASC 350-20”), “Intangibles–Goodwill and Other: Goodwill”, which requires that goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Group recognizes an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, up to the amount of goodwill allocated to that reporting unit. The Company identified the BTC.com Pool Business to be the reporting unit for goodwill impairment testing. During the year ended December 31, 2022, the Company performed both qualitative and quantitative assessment for goodwill impairment by comparing the fair value of BTC.com Pool Businesses to its carrying value. The Company used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation specialist to estimate fair value, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rate. As a result, the impairment loss on goodwill of US$26,569 was recognized for the year ended December 31, 2022. |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets or asset group, including property and equipment, intangible assets and right-of-use assets, with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value. The Group recorded an impairment loss of US$56 for intangible assets of Loto Interactive for the year ended December 31, 2021, and a total impairment of US$56,094 for intangible assets of Alliance International Technologies and Asgard for the year ended December 31, 2022. There was no such impairment for the year ended December 31, 2020. The Group recorded an impairment loss of US$22,392 for property and equipment and an impairment loss of US$387 for right-of-use assets, due to the closure and demolition of data centers in Sichuan, China, of Loto Interactive for the year ended December 31, 2021, and an impairment of US$35,224 mainly for the mining machines in Kazakhstan and the USA for the year ended December 31, 2022. There was no such impairment for the year ended December 31, 2020. |
Long-term investments | Long-term investments The Group’s long-term investments consist of equity investments without readily determinable fair value and equity method investments. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group records them at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASC Topic 321 (“ASC 321”), “ Investments Equity Securities Management regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323 (“ASC 323”), “ Investments-Equity Method and Joint Ventures According to the above testing, impairment loss of US$4,787, nil and US$2,250 for the long-term investments was recognized during the years ended December 31, 2020, 2021 and 2022, respectively. Investments in limited partnerships greater than 5% are considered more than minor and accounted for using the equity method, unless it is readily apparent that the Group has virtually no influence over the partnership’s financial and operating policies. |
Cryptocurrency asset borrowings | Cryptocurrency asset borrowings In April 2021, the Group borrowed cryptocurrency assets from a third party on an unsecured basis in connection with acquisition of the entire mining pool business of Blockchain Technologies Holding Company operated under BTC.com. The borrowing is interest-free and due in three months. In July 2021, the Group has repaid the borrowing in cryptocurrencies. The borrowings are accounted for as hybrid instruments, with a liability host contract that contains an embedded derivative based on the changes in the fair value of the underlying cryptocurrency asset. The host contract is carried at the fair value of the assets acquired. The embedded derivative is accounted for at fair value, with changes in fair value recognized as changes in fair value of derivative instrument in the consolidated statements of comprehensive loss. During the year ended December 31, 2021, the Company recognized changes in fair value of derivative instrument of $3,696 in the consolidated statements of comprehensive loss. There was no such event during the year ended December 31, 2022. |
Derivative contracts | Derivative contracts As a result of the Group entering into transactions to borrow cryptocurrencies, an embedded derivative is recognized relating to the differences between the cost of the cryptocurrencies borrowed on the contract effective date and the fair value of the cryptocurrencies that will ultimately be repaid, based on changes in the spot price of the cryptocurrencies over the term of the borrowing. The Group measures the fair value of the cryptocurrencies by taking the quoted prices from active markets, which the Group considers to be a Level 1 fair value input under ASC 820 “Fair Value Measurements and Disclosures”. |
Fair Value measurements | Fair value measurements Financial instruments primarily include cash and cash equivalents, restricted cash, short-term investment, accounts receivable, prepayments and other receivables, equity security without readily determinable fair values, equity method investments, accounts payable and accrued expenses and other current liabilities. The Group carries the investment under the measurement alternative basis and equity method investment on other-than-temporary basis. Contingent consideration related to the acquisition of Alliance International Technologies is included in accrued expenses and other current liabilities in the consolidated balance sheets, the fair value of which was based on the number of shares of ordinary shares that were expected to be issued and the fair value of the ordinary shares of the Company. The carrying values of other financial instruments, approximate their fair values due to their short-term maturities. The Group’s non-financial assets, including cryptocurrency assets, intangible assets, goodwill and property and equipment are measured at fair value when an impairment charge is recognized. Fair value of cryptocurrencies is based on quoted prices in active markets. The Group applies ASC 820 (“ASC 820”), “Fair Value Measurements and Disclosures”. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2— Include other inputs that are directly or indirectly observable in the marketplace. Level 3— Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach, and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Related party transactions | Related party transactions A related party is generally defined as (i) any person holds 10% or more of the Company’s securities and their immediate families (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Revenue recognition | Revenue recognition The Group’s revenues were derived principally from cryptocurrency mining, data center services, mining pool services and online gaming services. The Group also provided sports information service through its former lottery business related VIE subsidiaries and disposed of this business line together with the disposal of VIE structures on July 23, 2021. The Group accounts for revenues under ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The primary sources of the Group’s revenues are as follows: Cryptocurrency mining The Group has entered into a cryptocurrency mining pool, BTC.com, by executing contracts with the mining pool operator to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Group’s enforceable right to compensation only begins when the Group provides computing power to the mining pool operator. In exchange for providing computing power, the Group is entitled to considerations in the form of cryptocurrencies from the mining pool operator (less pool operator fees to the mining pool operator which are recorded net with revenues), which is calculated based on a predetermined formula agreed by the Group and the mining pool operator as a part of the contracts. Providing computing power is an output of the Group’s ordinary activities and is the only performance obligation in the Group’s contract with the pool operator. The Group is entitled to consideration even if a block is not successfully placed by the mining pool operator. The transaction consideration the Group receives is noncash consideration in the form of cryptocurrencies. The Group measures the cryptocurrencies at fair value at contract inception. All considerations are variable and revenue is recognized when the computing power is provided to the mining pool and there is no uncertainty associated with the variable consideration. There is no significant financing component in these transactions. Cryptocurrency mining revenue generated from providing computing power to the Group’s affiliated consolidated subsidiary, BTC.com, is eliminated in consolidation, along with corresponding intercompany cost of mining pool services. Data center services The Group provides data center services such as providing its customers with rack space, utility, and cloud services such as virtual services, virtual storage, and data backup services, generally based on monthly services provided at a defined price included in the contracts. The performance obligations are the services provided to a customer for the month based on the contract. The transaction price is the price agreed with the customer for the monthly services provided and the revenues are recognized monthly based on the services rendered for the month. Mining pool services The Group operates its mining pool, BTC.com, to enable providers of computing power (“pool participants”) to participate in crypto-mining activities in an efficient manner in the blockchain network. It receives all the mining rewards, and then allocates mining rewards to each pool participant net of the pool operator fees based on the sharing mechanism predetermined. Using computing power provided by the pool participants, the Group provides transaction verification services to the blockchain networks and transaction requesters (the “primary mining pool services" or the Company as the “primary mining pool operator”). During the year ended December 31, 2022, the Company entered into arrangements with certain third-party mining pool operators to contribute a portion of the computing power it obtained from BTC.com pool participants to the third-party mining pool operators. In exchange, the Company is entitled to considerations in the form of cryptocurrencies from the third-party mining pools operators calculated based on a predetermined formula regardless of whether the third-party mining pool operators successfully validate the blocks (the “sub mining pool services" or the Company as the “sub mining pool operator”) (primary mining pool services and sub mining pool services collectively referred as the “mining pool services”). Primary mining pool services As the primary mining pool operator, the Group provides transaction verification services. Transaction verification services are an output of the Group’s ordinary activities. The mining rewards the Group receives from the blockchain network include the block rewards and the transaction verification fees related to the transactions included in the block. For block rewards, the customer is the blockchain as the Group attempts to be the first vendor to solve an algorithm that it will then place as a successful block on the blockchain in exchange for cryptocurrency block rewards awarded by the blockchain protocols. For transaction verification fees, the requester for each blockchain transaction request is the customer. A contract with the blockchain for the block rewards or with the transaction requester for the transaction verification fees exists upon the transfer of a verified block to the blockchain. The performance obligation is to validate each block. Revenue is recognized at the point when the block validation is successfully completed, which is also when the Group receives the rewards. Revenue, which is noncash consideration, is measured at the fair value of block rewards and transaction verification fees earned at contract inception. The Group considers itself the principal in transactions with the blockchain networks as it coordinates all the computing power within the mining pool, utilizes such aggregated computing power to validate blocks, collects centrally all mining rewards and distributes them in accordance with the predetermined sharing mechanisms. The Group has control over the pool participants’ computing power. Although the pool participants can enter and exit the pool at will and deploy the qualifying types of mining machines at the choices of the pool participants, during the mining process, the Group dictates the tasks and the participants’ mining machines merely follow the allocation prescribed by the Group. As a result, the Group is primarily responsible for fulfilling the promise to provide the specified service, which is to transfer a verified block to the blockchain. Further, under existing sharing mechanisms, the Group is exposed to the risk that actual block rewards may differ from expected rewards, therefore, bears the inventory risk before the specified service has been transferred to the blockchain network. Therefore, the Group recognizes the mining pool revenue on a gross basis by recording all of the transaction fees and block rewards earned under the primary mining pool services as revenue, and the portion of the transaction fees and block rewards remitted to pool participants as cost of revenue. Sub mining pool services As the sub mining pool operator, using computing power obtained from pool participants, the Group provides computing power to certain third-party mining pool operators in exchange for considerations in the form of cryptocurrencies from the third-party mining pool operators. As the Group is entitled to consideration, which is calculated based on a predetermined formula agreed by the Group and the mining pool operators as a part of the contracts, even if a block is not successfully placed by the third-party mining pool operators, the Group entered into such arrangements to stabilize the mining rewards it is entitled to. Same to cryptocurrency mining arrangements, the contracts are terminable at any time by either party and the Group’s enforceable right to compensation only begins when the Group provides computing power to the third-party mining pool operators. Providing computing power is an output of the Group’s ordinary activities and is the only performance obligation in the Group’s contract with the third-party pool operators. The transaction consideration the Group receives is noncash variable consideration in the form of cryptocurrencies. The Group measures the cryptocurrencies at fair value at contract inception. The revenue is recognized when the computing power is provided to the third-party mining pool operators and there is no uncertainty associated with the variable consideration. There is no significant financing component in these transactions. The Group considers itself the principal in sub mining pool service transactions as the pool participants of BTC.com do not directly enter into contracts with the third-party mining pool operators and the Group is primarily responsible for fulfilling the promise to provide the computing power and to remit a portion of the mining rewards to the pool participants. In case of the non-performance of the third-party mining pool operators, the Group is obligated to compensate the pool participants for considerations they are entitled to. As a result, the Group determined that it controls the computing power before it is provided to the third-party mining pool operators. The Group recognizes the mining pool revenue on a gross basis by recording all of the mining rewards earned under the sub mining pool services as revenue, and the portion of mining rewards remitted to pool participants as cost of revenue. Online gaming services The Group also provided online lottery betting and online casino platforms through the Group’s designated website after the acquisition of TMG in July 2017. The Group earned difference between betting and winning for online lottery betting services and online casino platforms as revenues that were generated from the registered users. The registered users entered into certain terms and conditions when they first opened their accounts with the Group. Lottery and Casino purchase orders were placed by users through the Group’s online platforms view website. Then the Group processed these orders. Prior to processing orders, users prepaid all purchase amounts. The Group paid users prizes when there were any winnings attributable to users. The Group recorded revenues on a net basis by deducting the winning amounts from betting amounts. Revenue comprised the fair value of the consideration received for the provision of internet gaming in the ordinary course of the Group’s activities, which was recognized when the outcome of an event is known. The Company had fully terminated its online lottery business in Europe which was operated under TMG in January 2022. Contract balances The Group does not have any contract assets. The Group’s contract liabilities include advance from customers, which is recorded when consideration is received from a customer prior to providing services to the customer under the terms of a contract. As of December 31, 2021 and 2022, the Group recorded advance from customers balance of US$744 and US$384 respectively, which was included in “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheets. US$753, US$640 and US$361 of deferred revenue included in the opening balances of advance from customers was recognized during the years ended December 31, 2020, 2021 and 2022, respectively. The amounts were included in revenues on the accompanying statements of comprehensive loss. Refer to Note 24 regarding the discussion of the Group’s disaggregate revenue data. |
Cost of services | Cost of services Cost of mining pool services Cost of mining pool services which was offered under BTC.com consists primarily of the mining rewards allocated to each pool participant in exchange for their computing power contributed to the mining pool. The mining rewards allocated to the pool participants include both the block rewards as well as the transaction verification fees related to the transactions included in the block, depending on the sharing mechanism chosen by individual pool participants. Cost of mining pool services also consists of other direct costs related to providing the mining pool service such as server fees and labor for maintaining the mining pool service. Cost of mining pool services before inter-segment elimination were US$1,315,621 from April 15, 2021 to December 31, 2021 and US$635,300 for the year ended December 31, 2022. Cost of mining pool services after inter-segment elimination were US$1,279,757 from April 15, 2021 to December 31, 2021 and US$591,565 for the year ended December 31, 2022. These costs are expensed as incurred. Cost of data center services The cost of data center services, which consist primarily of direct production costs related to data center service, including the direct service charges for operations. The amounts were US$10,982 and US$12,673 for the years ended December 31, 2021 and 2022, respectively. These costs are expensed as incurred. Cost of cryptocurrency mining The cost of cryptocurrency mining, which consist primarily of direct costs related to cryptocurrency mining machines, including the server leasing and maintenance charges. The amounts before inter-segment elimination were US$14,900 and US$28,119 for the years ended December 31, 2021 and 2022, respectively. The amounts after inter-segment elimination were US$12,132 and US$20,526 for the years ended December 31, 2021 and 2022, respectively. These costs are expensed as incurred. Depreciation fees Depreciation fees, which consist primarily of depreciation of machinery and equipment related to cryptocurrency mining and data center services, were nil, US$13,819 and US$22,935 for the years ended December 31, 2020, 2021 and 2022, respectively. These costs are recorded in consolidated statements of comprehensive loss on a straight-line basis over the useful life of the machinery and equipment. Amortization fees Amortization fees, which consist primarily of amortization of intangible assets arising from business combinations, were US$229, US$5,058 and US$9,090 for the years ended December 31, 2020, 2021 and 2022, respectively. These costs are recorded in consolidated statements of comprehensive loss on a straight-line basis over the useful life of the intangible assets. Cost of services also comprise lottery insurance expenses, regulatory and compliance fees, platform fees, account handling expense and other direct costs incurred in providing services. These costs are expensed as incurred. |
Sales and marketing expenses | Sales and marketing expenses Sales and marketing expenses consist primarily of employee costs, commission to certain internet companies and expenses related to promotional activities. These costs are expensed as incurred. |
Service development expenses | Service development expenses Service development expenses consist primarily of personnel-related expenses incurred for the development of, enhancement to, and maintenance of the Group’s website that either (i) did not meet the capitalization criteria in accordance with ASC 350, “Intangibles - Goodwill and other” |
Leases | Leases On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (together with all amendments subsequently issued thereto, “ASC Topic 842”), using the modified retrospective method. The Group elected not to record assets and liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Group recognizes lease expenses for such leases on a straight-line basis over the lease term. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Group’s incremental borrowing rate, on a secured basis. The initial measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. When a lease is terminated, the right-of-use asset and operating lease liability associated with the lease are derecognized and any difference between the carrying amounts of the right-of-use asset and the lease liability is recognized in the consolidated statements of comprehensive loss as a gain or loss. The Group does not have finance lease arrangements as of December 31, 2022. All right-of-use assets are reviewed for impairment. The Group recorded impairment of nil, US387 and nil on the right-of-use lease assets during the years ended December 31, 2020, 2021 and 2022, respectively. These costs are expensed as incurred. |
Income taxes | Income taxes The Group follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period that includes the enactment date. Interest and penalties arising from underpayment of income taxes are computed in accordance with the applicable tax law and is classified in the consolidated statements of comprehensive loss as income tax expense. The amount of interest expense is computed by applying the applicable statutory rate of interest to difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. In accordance with the provisions of ASC 740 (“ASC 740”), “Income taxes” In conjunction with ASC 740, the Group also applied ASC 740-30 (“ASC 740-30”), “ Income Taxes: Other Considerations or Special Areas” In December 2019, the FASB issued ASU 2019-12, “ Simplifying the Accounting for Income Taxes |
Share-based compensation | Share-based compensation Share options and restricted shares granted to employees and directors are accounted for under ASC 718 (“ASC 718”), “ Compensation - Stock compensation” ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in the subsequent period if actual forfeitures differ from initial estimates. Forfeiture rate is estimated based on historical and future expectation of employee turnover rate and is adjusted to reflect future change in circumstances and facts, if any. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those share-based awards that are expected to vest. To the extent the Group revises this estimate in the future, the share-based payments could be materially impacted in the period of revision, as well as in following periods. The compensation costs associated with a modification of the terms of the award (“Modification Award”) are recognized if either the original vesting condition or the new vesting condition has been achieved. Such compensation costs cannot be less than the grant-date fair value of the original award. The incremental compensation cost is measured as the excess of the fair value of the Modification Award over the fair value of the original award at the modification date. Therefore, in relation to the Modification Award, the Group recognizes share-based compensation over the vesting periods of the new options, which comprises, (1) the amortization of the incremental portion of share-based compensation over the remaining vesting term, and (2) any unrecognized compensation cost of original award, using either the original term or the new term, whichever is higher for each reporting period. The Group, with the assistance of an independent valuation firm, determined the fair values of the share options recognized in the consolidated financial statements. The binomial option pricing model is applied in determining the estimated fair value of the share options granted to employees and non-employees. |
Loss per share | Loss per share The Company computes loss per Class A and Class B ordinary shares in accordance with ASC 260 (“ASC 260”), “ Earnings Per Share” The liquidation and dividend rights of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B ordinary shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B ordinary shares is assumed in the computation of the diluted net loss per share of Class A ordinary shares, the undistributed earnings are equal to net loss for that computation. For the purposes of calculating the Company’s basic and diluted loss per Class A and Class B ordinary shares, the ordinary shares relating to the options that were exercised are assumed to have been outstanding from the date of exercise of such options. |
Government grants | Government grants Government grants are recognized when there is reasonable assurance that the attached conditions will be complied with. When the grant relates to an expense item, it is recognized in the consolidated statements of comprehensive loss over the period necessary to match the grant on a systematic basis to the related costs. Where the grant relates to an asset acquisition, it is recognized in the consolidated statements of comprehensive loss in proportion to the depreciation of the related assets. |
Treasury shares | Treasury shares The Group accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. |
Recent accounting pronouncements | Recent accounting pronouncements The Group has considered all recent accounting pronouncements and has concluded that there are no recent accounting pronouncements that may have a material impact on its Consolidated Financial Statements, based on current information. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION | |
Schedule of variable interest entities | Percentage of ownership Place of by the Entity Date of establishment establishment Company Principal activities Subsidiaries Fine Brand Limited (“BVI”) February 9, 2011 British Virgin Islands 100 % Investment Holding BT Mining Limited (BT Mining) April 19, 2021 Cayman Islands 100 % Investment Holding 500wan HK Limited (“500wan HK”) March 8, 2011 Hong Kong 100 % Investment Holding Bee Computing (HK) Limited(“Bee Computing”) May 17,2016 Hong Kong 100 % Miner Manufacturing E-Sun Sky Computer (Shenzhen) Co., Ltd. (“E-Sun Sky Computer”) June 18, 2007 Mainland China 100 % Technology Service Star Light Inc. (“Star Light”) January 29, 2021 Cayman Islands 100 % Investment Holding Skill Esport Limited(“Skill Esport”) May 23, 2018 Hong Kong 100 % Cryptocurrency Mining Summit Bend US Corporation(“Summit Bend”) September 22, 2021 USA 100 % Investment Holding Star Light Ohio I Corporation(“Ohio I”) September 23, 2021 USA 100 % Cryptocurrency Mining Star Light Ohio II Corporation(“Ohio II”) September 23, 2021 USA 100 % Investment Holding Asgard Data Centers LLC (“Asgard”) September 16, 2021 USA 100 % Data Center Service Alliance International Technologies Limited(“Alliance International Technologies”) March 11, 2020 British Virgin Islands 100 % Cryptocurrency Mining Hong Kong Sunstar Technology Co., Limited (“Sunstar Technology”) April 9, 2020 Hong Kong 100 % Mining Pool Service Beijing Guixinyanghang Technology Limited(“Guixinyanghang“) June 12, 2020 Mainland China 100 % Technology Service E-Sun Kazakhstan Limited August 23, 2021 Kazakhstan 100 % Investment Holding 1324492 B.C.Ltd September 16, 2021 Canada 100 % Investment Holding The Multi Group Ltd (“The Multi Group” or “TMG”) June 26, 2015 Malta 100 % Investment Holding Multi Warehouse Ltd* December 3, 2014 Malta 100 % Online Gaming Multi Brand Gaming Ltd* October 3, 2014 Malta 100 % Online Gaming Multilotto UK Ltd* September1, 2016 Malta 100 % Online Gaming Lotto Warehouse Ltd* September1, 2016 Malta 100 % Online Gaming Wasp Media Ltd* August 12, 2016 Malta 100 % Online Gaming Round Spot Services Ltd* May 6, 2015 Cyprus 100 % Online Gaming Multi Pay N.V.* August 25, 2011 Curacao 100 % Online Gaming Oddson Europe Ltd* January10, 2018 Malta 100 % Online Gaming * A subsidiary of the Multi Group Information on Variable Interest Entities (“VIEs”) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of property and equipment | Category Estimated Useful Life Estimated Residual Machinery and equipment-data center equipment 5 years 5 % Machinery and equipment- mining machine and other equipment 2-3 years — Electronics and office equipment 3-5 years 5 % Motor vehicles 5-10 years 5 % Leasehold improvements Shorter of lease term or the estimated useful lives of the assets — |
Schedule of estimated useful lives of intangible assets | Category Estimated Useful Life Computer software 3-10 years Internet domain name 10 years Licensing agreement Agreement term Intangible assets arising from business combination and asset acquisitions Licenses and brand name 10 years Mobile applications and software 5 years Internet domain name and brand name 10 years Strategic contract 5 years Unpatented technology 3 years |
Schedule of impact of error on financial statements | As of December 31, 2021 Consolidated Balance Sheet As Reported Effect of Adjustment As Revised Cryptocurrency assets $ 55,077 $ (1,887) $ 53,190 Total current assets 95,143 (1,887) 93,256 Total assets 296,116 (1,887) 294,229 Accumulated deficit and statutory reserve (384,867) (1,887) (386,754) Total shareholders' equity 207,150 (1,887) 205,263 Total liabilities and shareholders' equity 296,116 (1,887) 294,229 For the year ended December 31, 2021 As Effect of Consolidated Statement of Comprehensive Loss Reported Adjustment As Revised Net gain on disposal of cryptocurrency assets $ 6,717 $ 4,675 $ 11,392 Impairment of cryptocurrency assets (31,757) (6,562) (38,319) Operating loss from continuing operations (68,350) (1,887) (70,237) Loss before income tax from continuing operations (63,925) (1,887) (65,812) Net loss from continuing operations (63,566) (1,887) (65,453) Net loss (72,487) (1,887) (74,374) Net loss attributable to BIT Mining Limited (60,516) (1,887) (62,403) Losses per share for Class A and Class B ordinary shares outstanding-Basic and Diluted: Net loss from continuing operations (0.08) (0.01) (0.09) Net loss (0.09) (0.01) (0.10) Losses per American Depositary Share ("ADS*") (1 ADS represents 100 Class A ordinary shares)-Basic and Diluted: Net loss from continuing operations (8.32) (0.30) (8.62) Net loss (9.72) (0.30) (10.02) * American Depositary Shares, which are traded on the NYSE. Each ADS represents one hundred Class A ordinary shares of the Company. Note: Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, to the current ADS Ratio of 1 ADS to 100 Class A ordinary shares, effective on December 23, 2022. For the year ended December 31, 2021 Consolidated Statement of Cash Flows As Reported Effect of Adjustment As Revised Net loss $ (72,487) $ (1,887) $ (74,374) Impairment of cryptocurrency assets 31,757 6,562 38,319 Net gain on disposal of cryptocurrency assets (6,717) (4,675) (11,392) For the year ended December 31, 2021 Consolidated Statement of Changes in Accumulated deficit and Total shareholders' Shareholders' Equity statutory reserve equity Net loss for the year (as reported) $ (60,516) $ (72,487) Net loss for the year (effect of adjustment) (1,887) (1,887) Net loss for the year (as revised) (62,403) (74,374) Balance as of December 31, 2021 (as reported) (384,867) 207,150 Balance as of December 31, 2021 (effect of adjustment) (1,887) (1,887) Balance as of December 31, 2021 (as revised) (386,754) 205,263 |
CONCENTRATION OF RISKS (Tables)
CONCENTRATION OF RISKS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CONCENTRATION OF RISKS | |
Schedule of concentration of credit risk | Concentration of customers For the year ended December 31, 2021, no customer accounted for 10% or more of the Group’s revenues. For the year ended December 31, 2022, the customer accounted for 10% or more of the Group’s revenues was as follows: For the year ended December 31, 2021 2022 A — % 11.0 % Concentration of suppliers For the years ended December 31, 2021 and 2022, the supplier accounted for 10% or more of the Group’s costs was as follows: For the year ended December 31, 2021 2022 A 17.5 % 17.6 % |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DISCONTINUED OPERATIONS | |
Schedule of group calculated a loss resulting from such disposition | As of July 23, 2021 US$ Consideration — Cash and cash equivalents 1,200 Restricted Cash 194 Prepayments and other receivables 2,032 Property and equipment, net 1,346 Intangible assets, net 102 Long-term investments 492 Other non-current assets 236 Accrued payroll and welfare payable (173) Accrued expenses and other current liabilities (833) Long-term payables (61) Net assets of lottery business related VIEs* 4,535 Noncontrolling interest of lottery business related VIEs 2,162 Less: Net assets of lottery business related VIEs contributable to the Company 6,697 Loss on disposal of lottery business related VIEs (6,697) * Net assets of lottery business related VIEs excluded payables of US $31,195 to the Company, which mainly consisted a loan of US $27,987 provided by the Company to the former VIE subsidiary, Shenzhen E-Sun Sky Network Technology Co.,Ltd. (“E-Sun Sky Network”) and the Company does not have an intention to collect. The exemption of debt filed by the Company and E-Sun Sky Network was approved by the PRC State Administration of Foreign Exchange and the State Taxation Administration in May 2022. |
Schedule of condensed cash flows of lottery business related VIE | For the years ended December 31, 2020 2021* US$ US$ Net cash used in operating activities (5,960) (2,985) Net cash provided by investing activities 2,826 953 Net cash provided by (used in) financing activities 3,026 (26,955) Effect of foreign exchange on cash 1,889 381 |
Schedule of operating results from discontinued operations included in the Group's consolidated statements of comprehensive loss | For the years ended December 31, 2020 2021* US$ US$ Major classes of line items constituting pre-tax profit of discontinued operations Revenues 1,000 1,269 Cost of revenue (419) (192) Sales and marketing (1,284) (556) General and administrative (7,822) (2,322) Service development expenses (2,444) (496) Other income that are not major 1,690 73 Loss from discontinued operations, before income tax (9,279) (2,224) Income tax expense 500 — Loss from discontinued operations, net of income tax (8,779) (2,224) Loss on disposal of the subsidiary, net of income tax — (6,697) Net loss from discontinued operations, net of income tax (8,779) (8,921) * Included financial results of discontinued operations from January 1, 2021 to July 23, 2021. |
BUSINESS COMBINATION, ASSET A_2
BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of assets and liabilities disposed | Amount Amount HKD US$ Net assets disposed of: Cash and cash equivalents 39,174 4,990 Amounts due from related parties 422 54 Prepayments and other receivables 37,534 4,781 Property and equipment, net 24,443 3,114 Long-term investments 3,514 448 Other non-current assets 33,488 4,266 Accounts payable (3,206) (408) Amounts due to related parties (6,099) (777) Accrued payroll and welfare payable (12,623) (1,608) Other current liabilities (4,756) (606) Income tax payable (3,278) (418) Other non-current liabilities (800) (102) Net assets of the subsidiaries 107,813 13,734 Noncontrolling interest of the subsidiaries (43,412) (5,542) Fair value of retained non-controlling interest in the subsidiaries (13,497) (1,719) Net assets of the subsidiaries attributable to the Company 50,904 6,473 Reclassification of accumulated translation adjustment into gain on disposal 1,241 184 Consideration 78,308 9,997 Gain from disposal of subsidiaries 26,163 3,340 |
Schedule of cash flows disposal | Amount Amount HKD US$ Cash flows of the disposal: Cash and cash equivalents deconsolidated (39,174) (4,990) Proceeds from the disposal of subsidiaries 78,308 9,997 Proceeds from disposal of subsidiaries, net of cash disposed 39,134 5,007 |
Loto Interactive | |
Summary of the fair values of the assets acquired and liabilities assumed at the acquisition date | The following table presents the purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date. Amount Amount HKD US$ Current assets 232,103 29,854 Property and equipment, net 201,713 25,946 Other non-current assets 71,728 9,226 Total identifiable assets acquired 505,544 65,026 Current liabilities 163,161 20,987 Non-current liabilities 2,388 307 Total liabilities assumed 165,549 21,294 Net identifiable assets acquired 339,995 43,732 |
Summary of calculation of the purchase consideration | Concurrently with the completion of the Share Subscription, Loto Interactive has completed its acquisition of the remaining equity interests in its indirectly held subsidiary, Ganzi Changhe Hydropower Consumption Service Co., Ltd. (“Ganzi Changhe Data Center”), for a total consideration of RMB88,200 (US$13,841) in cash. The following table presents the calculation of the purchase consideration. The calculation of US$ amount was based on the exchange rate of 1.00 HKD to 0.1286 US$ of the acquisition date on March 31, 2021. Amount Amount HKD US$ Re-measurement of the fair value of previously-held equity interest 79,280 10,200 Purchase price at acquisition close on March 31, 2021 105,000 13,503 Fair value of noncontrolling shareholders 155,715 20,029 Total allocated purchase price 339,995 43,732 |
Blockchain Alliance Technologies | |
Summary of the fair values of the assets acquired and liabilities assumed at the acquisition date | Amount Amortization Years USD Current assets 73,389 — Acquired intangible assets 58,559 10.0 Other non-current assets 31 — Total identifiable assets acquired 131,979 — Other current liabilities 73,420 — Total liabilities 73,420 — Net identifiable assets acquired 58,559 — Total Consideration 85,128 — Goodwill 26,569 — |
Summary of calculation of the purchase consideration | Amount USD Fair value of 44,353,435 Class A ordinary shares at acquisition close on April 15, 2021 69,945 Contingent consideration 15,183 Total allocated purchase price 85,128 |
Acquisition of Bee Computing (HK) Limited | |
Summary of the fair values of the assets acquired and liabilities assumed at the acquisition date | Amount Amortization Years US$ Cash 25 Prepayments and other receivables 18,155 Acquired intangible asset 3,633 3.0 Total identifiable assets acquired 21,813 Total purchase consideration 21,813 |
Summary of calculation of the purchase consideration | Amount US$ Fair value of 16,038,930 Class A ordinary shares at acquisition close on May 31, 2022 3,416 Effective settlement of preexisting loans 18,397 Total purchase consideration 21,813 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS | |
Schedule of long term investments | As of As of December 31, December 31, 2021 2022 US$ US$ Carrying amount of equity investments without readily determinable fair value 7,670 5,058 Carrying amount of equity method investments 2,380 2,991 Carrying amount of long-term investments 10,050 8,049 |
CRYPTOCURRENCY ASSETS (Tables)
CRYPTOCURRENCY ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CRYPTOCURRENCY ASSETS. | |
Indefinite-lived Intangible Assets [Line Items] | |
Summary of continuity of cryptocurrencies | For the year For the year ended December ended December 31, 2021 31, 2022 US$ US$ Beginning balance — 53,190 Receipts from issuance of ordinary shares for private placement 19,289 — Cryptocurrencies acquired in connection with business combination 73,184 — Cryptocurrencies borrowing 10,222 — Cryptocurrencies mined from mining pool business 1,275,238 592,583 Cryptocurrencies mined from mining business 39,013 47,126 Cryptocurrency to be distributed for promotion activities on behalf of a third party 3,179 — Deposits received from customers of mining data center 3,965 2,192 Distribution to pool participants (1,282,143) (611,747) Repayment of deposit in the form of cryptocurrencies (6,586) — Repayment of cryptocurrencies borrowings (6,523) — Payment of service expense and long-lived assets (2,295) (6,939) Cryptocurrencies paid in connection with asset acquisition (1,731) — Disposal of cryptocurrency assets* (32,924) (43,787) Utility fee received from customers of mining data center — 3,658 Cyberattack loss — (3,100) Others (379) 231 Impairment of cryptocurrency assets (38,319) (18,435) Ending balance of cryptocurrency assets, net 53,190 14,972 * In January 2022, the Company entered into a loan agreement and a pledge agreement for one year, pursuant to which the lender agreed to lend to the Company funds equal to approximately US$6,306,which was 65% of the current fair market value of 4,000 Ethereum, with a fixed interest rate of 3.25% per annum. In June 2022, the loan has been fully settled by rendering the pledged Ethereum to the lender. Disposal of cryptocurrencies for the year ended December 31, 2022 included the carrying amount of the pledged Ethereum of US$9,628 rendered to the lender and the Group recorded a loss on disposal of cryptocurrencies in the amount of approximately US$3,322. |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Summary of Prepayments and Other current assets | As of As of December 31, December 31, 2021 2022 US$ US$ Receivables from third-party payment service providers 574 504 Utility deposits 2,820 630 Deferred expense* 401 1,640 Loans to the third parties** 9,328 1,259 Deductible value-added input tax 7,458 3,535 Others 944 742 Prepayments and other receivables 21,525 8,310 * Deferred expense represents cash paid in advance to vendors, such as consultant expense and compliance expense, which would be amortized according to their respective service periods. ** Loans to the third parties as of December 31, 2021 mainly consist of the free interest and due on demand loans of US$7,965 to Bee Computing which engages in the research and development of cryptocurrency mining chips and mining machines. The preexisting loans were effectively settled on the acquisition date. See Note 5 for detailed discussion. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property and Equipment | Property and equipment consists of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Machinery and equipment 95,979 79,941 Electronics and office equipment 1,280 512 Motor vehicles 966 901 Leasehold improvements 9,082 5,704 Construction in progress 7,662 8,703 Property and equipment, cost 114,969 95,761 Less: Accumulated depreciation (22,284) (34,151) Less: Provision for impairment (22,486) (34,390) Property and equipment, net 70,199 27,220 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
Schedule of Intangible Assets | As of As of December 31, December 31, 2021 2022 US$ US$ Cost: Computer software 3,988 3,538 License agreement 22,252 22,252 Internet domain name 150 150 Brand name 71,292 71,292 Strategic contract 18,199 10,010 Unpatented technology — 3,633 115,881 110,875 Accumulated amortization: Computer software (3,317) (2,953) License agreement (5,470) (5,470) Internet domain name (10) (25) Brand name (7,279) (13,135) Strategic contract (909) (2,471) Unpatented technology — (505) (16,985) (24,559) Impairment* : Computer software (581) (524) License agreement (16,782) (16,782) Brand name (9,602) (58,157) Strategic Contract — (7,539) (26,965) (83,002) Intangible assets, net 71,931 3,314 * The impairment as of December 31, 2021 include impairment of US$26,909 related to the acquired intangible assets of the Multi Group that were recognized during the year ended December 31, 2019, and impairment of US$56 related to the intangible assets of computer software of Loto Interactive during the year ended December 31, 2021. During the year ended December 31, 2022, the Group recorded additional impairment of US$48,555 related to the brand name and domain name of Alliance International Technologies and impairment of US$7,539 for the strategy contract of Asgard. The Group derecognized accumulated impairment of US$56 as a result of the disposal of Loto Interactive during the year ended December 31, 2022. |
Schedule of Estimated Amortization Expense | US$ 2023 1,273 2024 1,238 2025 723 2026 15 2027 15 2028 and thereafter 50 Total 3,314 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OPERATING LEASES | |
Schedule of operating lease related assets and liabilities | As of As of December 31, December 31, 2021 2022 US$ US$ Right-of-use assets 6,553 4,135 Impairment of right-of-use assets (387) — Right-of-use assets, net 6,166 4,135 Operating lease liabilities - current 2,213 1,367 Operating lease liabilities - non-current 4,569 2,837 Total operating lease liabilities 6,782 4,204 |
Summary of maturity of operating lease liabilities | US$ 2023 1,345 2024 1,134 2025 1,134 2026 850 Total 4,463 Less: imputed interest (259) Present value of lease liabilities 4,204 |
ACCOUNTS PAYABLES (Tables)
ACCOUNTS PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS PAYABLES | |
Schedule of accounts payables | As of As of December 31, December 31, 2021 2022 US$ US$ Pool participants payable* 53,400 19,761 Utility and service cost payable 983 3,636 Others 55 28 54,438 23,425 * Pool participants payable represents payments to pool participants in the mining pool business which are settled in cryptocurrencies. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other liabilities | Accrued expenses and other current liabilities consist of the following: As of As of December 31, December 31, 2021 2022 US$ US$ Advance from end users* 5,237 384 Deposit from customers** 3,965 1,302 Business tax and other taxes payable 255 228 Professional fees and services payable 4,033 1,762 Promotional events payables 394 370 Decoration payables — 670 Contingent consideration 1,247 — Others 3,607 439 18,738 5,155 * Advance from end users represents payments received by the Group in advance from the end users prior to the services to be provided. ** Deposit from customers represents payments received by the Group in advance from customers in the data center business. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of Loss before income taxes | 2020 2021 2022 US$ US$ US$ Cayman Islands (17,673) (7,732) (60,061) USA (80) (1,292) (31,506) Hong Kong (710) (26,926) (62,300) Japan (79) — — Malta (1,410) (1,152) (421) Curacao 160 114 (30) Cyprus (6) — — Mainland China (3,556) (28,824) (2,355) British Virgin Islands — — (1,754) (23,354) (65,812) (158,427) |
Schedule of current and deferred components | 2020 2021 2022 US$ US$ US$ Current tax benefit (expense) (1) — — Deferred tax benefit 31 359 — Income tax benefit 30 359 — |
Reconciliation of tax computed by applying the statutory income tax rate | 2020 2021 2022 US$ US$ US$ Loss before income taxes (23,354) (65,812) (158,427) Income tax computed at applicable tax rates (5,839) (10,859) (26,140) Effect of different tax rates in different jurisdictions 323 (858) (144) Non-deductible expenses 3,940 5,792 12,320 Change in valuation allowance 1,812 6,188 14,358 Effect of EIT reversal for previous years (22) (359) — Research and development super-deduction (235) (263) (394) Others (9) — — (30) (359) — |
Schedule components of deferred taxes | 2021 2022 US$ US$ Deferred tax assets Loss from equity method investment 53 50 Bad debt provision 887 887 Impairment of long-lived asset 7,526 30,019 Net operating losses (“NOLs”) 16,286 26,477 Less: valuation allowance (24,752) (57,433) Total deferred tax assets, net — — |
SHARE-BASED PAYMENT (Tables)
SHARE-BASED PAYMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Summary of share option granted to employees and directors information | Weighted Weighted Weighted average average average grant date remaining Aggregated Number of exercise fair value per contractual intrinsic options price share year value US$ US$ (Years) US$ Outstanding, January 1, 2020 26,001,220 0.96 1.25 0.71 1,590 Granted — — — — — Forfeited (18,616,300) 3.01 1.32 — — Exercised (125,900) 0.20 0.38 — 88 Outstanding, December 31, 2020 7,259,020 0.99 1.09 0.51 907 Granted — — — — — Expired (3,708,680) 2.70 1.15 — — Exercised (3,508,990) 0.71 1.00 — 524 Outstanding, December 31, 2021 41,350 0.40 0.97 1.81 9 Granted — — — — — Expired — — — — — Exercised — — — — — Outstanding, December 31, 2022 41,350 0.40 0.97 0.81 — Vested and expected to vest at December 31, 2022 41,350 0.40 0.97 0.81 — Exercisable at December 31, 2022 41,350 0.40 0.97 0.81 — |
Schedule of share-based payment award, stock options, valuation assumptions | Weighted Average Class A Weighted Average Remaining Aggregate Ordinary Shares Exercise Price Contractual Life Intrinsic Value US$ (Years) US$ Outstanding, January 1, 2021 — — — — Granted 100,000,000 0.68 2.53 — Forfeited — — — — Exercised — — — — Outstanding, December 31, 2021 100,000,000 0.68 2.53 — Granted 679,333,300 0.09 3.31 — Forfeited — — — — Exercised (48,000,000) 0.07 — — Outstanding, December 31, 2022 731,333,300 0.17 3.07 — Vested and expected to vest at December 31, 2022 731,333,300 0.17 3.07 — Exercisable at December 31, 2022 731,333,300 0.17 3.07 — |
Schedule of share-based compensation expenses relating to options and restricted shares granted to employees and directors | For the year ended December 31, 2020 Employees Directors Total US$ US$ US$ Sales and marketing 694 — 694 General and administrative 4,568 1,355 5,923 Service development expenses 1,430 — 1,430 6,692 1,355 8,047 For the year ended December 31, 2021 Employees Directors Total US$ US$ US$ Cost of services 1,665 — 1,665 Sales and marketing 16 — 16 General and administrative 2,843 1,613 4,456 Service development expenses 309 — 309 4,833 1,613 6,446 For the year ended December 31, 2022 Employees Directors Total US$ US$ US$ Cost of services 1,372 — 1,372 General and administrative 919 2,046 2,965 Service development expenses 137 — 137 2,428 2,046 4,474 |
Restricted shares granted to employees and directors | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of share-based compensation, restricted stock units award activity | Weighted Weighted average average grant date remaining Aggregated Number of fair value contractual intrinsic options per share year value US$ (Years) US$ Outstanding, January 1, 2020 13,406,560 0.93 8.52 11,530 Granted 17,477,740 0.36 9.61 15,730 Forfeited — — — — Exercised — — — — Outstanding, December 31, 2020 30,884,300 0.62 8.98 27,796 Granted 25,777,390 0.42 9.55 15,827 Forfeited — — — — Exercised (34,632,130) 0.60 — 21,264 Outstanding, December 31, 2021 22,029,560 0.42 9.55 13,526 Granted — — — — Forfeited — — — — Exercised (22,029,560) (0.42) — 348 Outstanding, December 31, 2022 — — — — Vested and expected to vest at December 31, 2022 — — — — Exercisable at December 31, 2022 — — — — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | For the year For the year For the year ended ended ended December 31, December 31, December 31, 2020 2021 2022 US$ US$ US$ Interest from loan to Loto Interactive Information 20 — — Other operating income from management service provided to Loto Interactive Information 32 — — Data center operation costs for services provided by a minority interest shareholder of a subsidiary — 1,325 9,108 52 1,325 9,108 |
LOSSES PER SHARE (Tables)
LOSSES PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOSSES PER SHARE | |
Calculation of Basic and Diluted Earnings Per Share | For the years ended December 31, 2020 2021 2022 US$ US$ US$ US$ US$ US$ Class A Class B Class A Class B Class A Class B Losses per share from continuing operations—basic: Numerator: Allocation of net loss from continuing operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating losses per ordinary share—basic (23,278) (46) (53,661) — (155,415) — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic losses per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Denominator used for losses per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Losses per share from continuing operations — basic (0.05) (0.05) (0.09) — (0.18) — Losses per share from continuing operations—diluted: Numerator: Allocation of net loss from continuing operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating loss per ordinary share— diluted (23,278) (46) (53,661) — (155,415) — Reallocation of net loss from continuing operations attributable to BIT Mining Limited’s ordinary shareholders as a result of conversion of Class B to Class A shares (46) — — — — — Net loss from continuing operations attributable to ordinary shareholders (23,324) (46) (53,661) — (155,415) — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic losses per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Conversion of Class B to Class A ordinary shares 847,093 — 99 — 99 — Denominator used for losses per share 430,011,263 847,093 622,337,974 99 871,036,499 99 Losses per share from continuing operations—diluted (0.05) (0.05) (0.09) — (0.18) — Losses from continuing operations per ADS*: Denominator used for losses per ADS - basic 4,291,642 — 6,223,379 — 8,710,364 — Denominator used for losses per ADS - diluted 4,300,113 — 6,223,380 — 8,710,365 — Losses from continuing operations per ADS – basic (5.42) — (8.62) — (17.84) — Losses from continuing operations per ADS – diluted (5.42) — (8.62) — (17.84) — |
Schedule of basic and diluted losses per share | For the years ended December 31, 2020 2021 2022 US$ US$ US$ US$ US$ US$ Class A Class B Class A Class B Class A Class B Losses per share from discontinued operations—basic: Numerator: Allocation of net loss from discontinued operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating losses per ordinary share—basic (9,070) (18) (8,742) — — — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic loss per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Denominator used for loss per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Losses per share from discontinued operations — basic (0.02) (0.02) (0.01) — — — Losses per share from discontinued operations—diluted: Numerator: Allocation of net loss from discontinued operations attributable to BIT Mining Limited’s ordinary shareholders used in calculating loss per ordinary share— diluted (9,070) (18) (8,742) — — — Reallocation of net loss from discontinued operations attributable to BIT Mining Limited’s ordinary shareholders as a result of conversion of Class B to Class A shares (18) — — — — — Net loss from discontinued operations attributable to ordinary shareholders (9,088) (18) (8,742) — — — Denominator: Weighted average number of ordinary shares outstanding used in calculating basic loss per share 429,164,170 847,093 622,337,875 99 871,036,400 99 Conversion of Class B to Class A ordinary shares 847,093 — 99 — 99 — Denominator used for loss per share 430,011,263 847,093 622,337,974 99 871,036,499 99 Losses per share from discontinued operations—diluted (0.02) (0.02) (0.01) — — — Losses from discontinued operations per ADS *: Denominator used for loss per ADS - basic 4,291,642 — 6,223,379 — 8,710,364 — Denominator used for loss per ADS - diluted 4,300,113 — 6,223,380 — 8,710,365 — Losses from discontinued operations per ADS – basic (2.11) — (1.40) — — — Losses from discontinued operations per ADS – diluted (2.11) — (1.40) — — — |
PURCHASE OF NONCONTROLLING IN_2
PURCHASE OF NONCONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PURCHASE OF NONCONTROLLING INTEREST | |
Summary of purchase price and accounting of the transaction | Amount US$ Construction in progress 5,863 Other non-current assets 4,902 Intangible assets, net 7,020 Total 17,785 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENT | |
Summary of assets measured or disclosed at fair value | Fair value measurement at December 31, 2021 Quoted prices in active Total fair markets for Significant other Significant value at identical observable unobservable December 31, assets inputs inputs 2021 (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Description Liabilities Contingent consideration 1,247 — — 1,247 Total liabilities 1,247 — — 1,247 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
Schedule of Segment Reporting Information, by Segment | For the years ended December 31, 2020 2021 2022 US$ US$ US$ Reportable segment revenues: Mining pool 1 — 1,310,970 636,937 Data center — 14,593 17,580 Cryptocurrency mining — 39,429 46,839 Others 2,167 2,516 199 Inter-segment 2 — (38,632) (51,328) Total segment and consolidated revenues 2,167 1,328,876 650,227 Reportable segment cost of revenue-exclusive depreciation and amortization: Mining pool — (1,315,621) (635,300) Data center — (10,982) (12,673) Cryptocurrency mining — (14,900) (28,119) Others (1,787) (1,667) (3,425) Inter-segment 2 — 38,632 51,328 Total segment and consolidated cost of revenue-exclusive depreciation and amortization (1,787) (1,304,538) (628,189) Reportable segment cost of revenue-depreciation and amortization: Mining pool — (4,148) (9,090) Data center — (3,269) (1,485) Cryptocurrency mining — (11,649) (21,448) Others (229) (106) (2) Inter-segment 3 — 295 — Total segment and consolidated cost of revenue-depreciation and amortization (229) (18,877) (32,025) Total segment and consolidated cost (2,016) (1,323,415) (660,214) Reconciling items: Operating expenses (17,419) (29,569) (27,084) Other operating income 534 8,140 590 Government grant 21 — 29 Other operating expenses (273) (14,686) (5,477) Net gain on disposal of cryptocurrency assets — 11,392 8,360 Impairment of cryptocurrency assets — (38,319) (18,435) Changes in fair value of derivative instrument — 3,696 — Impairment of property and equipment — (22,392) (35,224) Changes in fair value of contingent considerations — 13,936 1,247 Impairment of intangible assets — (56) (56,094) Impairment of goodwill — — (26,569) Inter-segment 3 — (7,840) — Operating loss (16,986) (70,237) (168,644) Other income, net 42 594 9,031 Interest income 242 56 150 Interest expense — (775) (218) Loss from equity method investments (1,865) (1,184) 164 Gain on previously held equity interest — 5,500 — Impairment of long-term investments (4,787) — (2,250) Gain from disposal of subsidiaries — 234 3,340 Income tax benefit 30 359 — Net loss (23,324) (65,453) (158,427) 1 The mining pool revenues for the year ended December 31, 2022 include US $535,890 from providing primary mining pool services and US $101,047 from providing sub mining pool services. The mining pool revenues for the year ended December 31, 2021 were all from providing primary mining pool services. See Note 2 – Revenue recognition for additional information. 2 The inter-segment eliminations mainly consist of (a) cryptocurrency mining revenue of US $35,864 and US $43,735 generated from computing power provided by cryptocurrency mining segment to mining pool segment for the years ended December 31, 2021 and 2022, respectively and corresponding cost of revenue of US $35,864 and US $43,735 incurred by mining pool segment for the years ended December 31, 2021 and 2022, respectively, and (b) data center revenue of US $2,768 and US$ 7,593 generated from data center services provided by data center segment to cryptocurrency mining segment for the years ended December 31, 2021 and 2022, respectively, and corresponding data center services cost of US $2,768 and US $7,593 incurred by cryptocurrency mining segment for the years ended December 31, 2021 and 2022, respectively, which have been eliminated upon consolidation. 3 The inter-segment eliminations mainly consist of internal transfer costs related to the transfer of cryptocurrency mining machines out of China, all of which have been eliminated upon consolidation. |
Schedule of revenue from continuing operations by geographical locations | For the year ended December 31 Revenues 2020 2021 2022 US$ US$ US$ Hong Kong — 40,035 47,038 USA — 2,829 17,580 Europe 2,167 2,214 — Mainland China — 11,460 — British Virgin Islands — — 492,155 Cayman Islands — — 2,898 Blockchain — 1,310,970 141,884 Inter-segment — (38,632) (51,328) 2,167 1,328,876 650,227 |
Schedule of long-lived by geographical locations | Long-lived assets As of December 31, 2021 As of December 31, 2022 US$ US$ USA 35,873 29,317 Hong Kong 31,745 1,365 Mainland China 6,435 300 Kazakhstan 2,310 373 Europe 2 — 76,365 31,355 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Schedule of condensed balance sheets | As of As of December 31, December 31, 2021 2022 US$ US$ ASSETS Current assets: Cash and cash equivalents 126 137 Short-term investment — 2,360 Cryptocurrency assets 16,807 2,811 Other current assets 44,362 32,285 Amounts due from intergroup companies 95,697 169,459 Total current assets 156,992 207,052 Non-current assets: Investment in subsidiaries and VIEs 37,355 (129,151) Intangible assets, net 140 125 Total non-current assets 37,495 (129,026) TOTAL ASSETS 194,487 78,026 As of As of December 31, December 31, 2021 2022 US$ US$ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued payroll and welfare payable 73 159 Accrued expenses and other liabilities 3,531 619 Amounts due to intergroup companies 10,993 24,120 Total current liabilities 14,597 24,898 TOTAL LIABILITIES 14,597 24,898 Shareholders’ equity: Class A ordinary shares, par value US $0.00005 per share; 1,599,935,000 shares authorized as of December 31, 2021 and December 31, 2022; 710,078,070 and 1,063,813,210 shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively 36 54 Class A preference shares, par value US $0.00005 per share; 65,000 shares authorized as of December 31, 2021 and December 31, 2022; 65,000 shares issued and outstanding as of December 31, 2021 and December 31, 2022 — — Class B ordinary shares, par value US $0.00005 per share; 400,000,000 shares authorized as of December 31, 2021 and December 31, 2022; 99 shares issued and outstanding as of December 31, 2021 and December 31, 2022 — — Additional paid-in capital 590,567 620,807 Treasury shares (21,604) (21,604) Accumulated other comprehensive loss (2,355) (3,960) Accumulated deficit and statutory reserve (386,754) (542,169) Total shareholder’s equity 179,890 53,128 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 194,487 78,026 |
Schedule of condensed statements of comprehensive income (loss) | For the years ended December 31, 2020 2021 2022 US$ US$ US$ Revenues — 39,414 40,274 Operating costs and expenses: Cost of revenue — (6,279) (15,595) Sales and marketing expenses (4) (244) (72) General and administrative expenses (8,347) (8,047) (3,307) Total operating costs and expenses (8,351) (14,570) (18,974) Net loss on disposal of cryptocurrency assets — (6,582) (9,349) Impairment of cryptocurrency assets — (4,436) (7,360) Operating profit (loss) (8,351) 13,826 4,591 Interest income 34 9 — Interest expense — (708) (60) Equity in loss of subsidiaries and VIEs (24,095) (75,530) (159,946) Loss before income tax (32,412) (62,403) (155,415) Net loss (32,412) (62,403) (155,415) Other comprehensive income (loss) Foreign currency translation gain (loss) 2,317 1,481 (1,605) Reclassification into loss of loss from equity method investments — 131 — Share of other comprehensive (loss) income from an equity method investee (177) 631 — Comprehensive loss (30,272) (60,160) (157,020) |
Schedule of Condensed Statements of Cash Flows | For the years ended December 31, 2020 2021 2022 US$ US$ US$ Net cash used in operating activities (2,606) (135,484) (12,259) Net cash (used in) provided by investing activities (1,842) 33,227 9,925 Net cash provided by financing activities 4,081 101,873 2,345 Net decrease (increase) in cash and cash equivalents (367) (384) 11 Cash and cash equivalents at beginning of the year 877 510 126 Cash and cash equivalents at end of the year 510 126 137 |
ORGANIZATION (Schedule of Varia
ORGANIZATION (Schedule of Variable Interest Entity) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Fine Brand Limited ("BVI") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Feb. 09, 2011 |
Place of establishment | British Virgin Islands |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
BT Mining Limited (BT Mining) | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Apr. 19, 2021 |
Place of establishment | Cayman Islands |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
500wan HK Limited ("500wan HK") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Mar. 08, 2011 |
Place of establishment | Hong Kong |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
Bee Computing (HK) Limited("Bee Computing") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | May 17, 2016 |
Place of establishment | Hong Kong |
Percentage of ownership by the Company | 100% |
Principal activities | Miner Manufacturing |
E-Sun Sky Computer (Shenzhen) Co., Ltd. ("E-Sun Sky Computer") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Jun. 18, 2007 |
Place of establishment | Mainland China |
Percentage of ownership by the Company | 100% |
Principal activities | Technology Service |
Star Light Inc. ("Star Light") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Jan. 29, 2021 |
Place of establishment | Cayman Islands |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
Skill Esport Limited("Skill Esport") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | May 23, 2018 |
Place of establishment | Hong Kong |
Percentage of ownership by the Company | 100% |
Principal activities | Cryptocurrency Mining |
Summit Bend US Corporation("Summit Bend") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 22, 2021 |
Place of establishment | USA |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
Star Light Ohio I Corporation("Ohio I") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 23, 2021 |
Place of establishment | USA |
Percentage of ownership by the Company | 100% |
Principal activities | Cryptocurrency Mining |
Star Light Ohio II Corporation("Ohio II") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 23, 2021 |
Place of establishment | USA |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
Asgard Data Centers LLC ("Asgard") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 16, 2021 |
Place of establishment | USA |
Percentage of ownership by the Company | 100% |
Principal activities | Data Center Service |
Alliance International Technologies Limited("Alliance International Technologies") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Mar. 11, 2020 |
Place of establishment | British Virgin Islands |
Percentage of ownership by the Company | 100% |
Principal activities | Cryptocurrency Mining |
Hong Kong Sunstar Technology Co., Limited ("Sunstar Technology") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Apr. 09, 2020 |
Place of establishment | Hong Kong |
Percentage of ownership by the Company | 100% |
Principal activities | Mining Pool Service |
Beijing Guixinyanghang Technology Limited("Guixinyanghang") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Jun. 12, 2020 |
Place of establishment | Mainland China |
Percentage of ownership by the Company | 100% |
Principal activities | Technology Service |
E-Sun Kazakhstan Limited | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Aug. 23, 2021 |
Place of establishment | Kazakhstan |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
1324492 B.C.Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 16, 2021 |
Place of establishment | Canada |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
The Multi Group Ltd ("The Multi Group" or "TMG") | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Jun. 26, 2015 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Investment Holding |
Multi Warehouse Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Dec. 03, 2014 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Multi Brand Gaming Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Oct. 03, 2014 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Multilotto UK Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 01, 2016 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Lotto Warehouse Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Sep. 01, 2016 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Wasp Media Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Aug. 12, 2016 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Round Spot Services Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | May 06, 2015 |
Place of establishment | Cyprus |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Multi Pay N.V. | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Aug. 25, 2011 |
Place of establishment | Curacao |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
Oddson Europe Ltd | |
Variable Interest Entity And Subsidiaries | |
Date of establishment | Jan. 10, 2018 |
Place of establishment | Malta |
Percentage of ownership by the Company | 100% |
Principal activities | Online Gaming |
ORGANIZATION (Narrative) (Detai
ORGANIZATION (Narrative) (Details) $ in Thousands | 1 Months Ended | ||||||
May 31, 2022 shares | Jun. 18, 2021 | Mar. 31, 2021 | Jun. 30, 2022 MW | Oct. 31, 2021 MW | Sep. 30, 2021 MW | Dec. 31, 2022 USD ($) | |
Cryptocurrency assets stolen | $ | $ 3,100 | ||||||
Viking Data Centers LLC | |||||||
Number of exclusive access to remaining Megawatts | 67.5 | ||||||
Bee Computing (HK) Limited("Bee Computing") | |||||||
Number of shares issued for acquisition | shares | 16,038,930 | ||||||
Ohio Mining Site | |||||||
Percentage of equity interest ownership in Ohio Mining Site | 55% | 55% | |||||
Maximum planned power capacity in Megawatts | 150 | 150 | |||||
Number of consideration Megawatts in Site Facilities | 67.5 | ||||||
Percentage of total planned power capacity | 45% | ||||||
Viking Data Centers LLC | |||||||
Percentage of equity interest | 51% | ||||||
Number of consideration Megawatts in Site Facilities | 67.5 | ||||||
Number of access to Mega Watt of planned electrical power | 82.5 | ||||||
Viking Data Centers LLC | Viking Data Centers LLC | |||||||
Number of access to Mega Watt of planned electrical power | 82.5 | ||||||
Number of exclusive access to remaining Megawatts | 67.5 | ||||||
Loto Interactive | |||||||
Increase of minority interest ownership percentage by noncontrolling owners | 59.79% | 54.20% |
ORGANIZATION - Information on V
ORGANIZATION - Information on Variable Interest Entities (Details) - Loto Interactive $ / shares in Units, $ in Thousands, $ in Thousands | 3 Months Ended | |||||
Mar. 15, 2023 | Jul. 12, 2022 | Jun. 18, 2021 HKD ($) | Jun. 18, 2021 USD ($) | Mar. 31, 2021 HKD ($) $ / shares | Mar. 31, 2021 USD ($) | |
Price per share for business combination | $ 0.62 | |||||
Total consideration paid | $ 26,224 | $ 3,378 | $ 105,000 | $ 13,503 | ||
Sale and purchase agreement | ||||||
Percentage of equity interest acquired | 51% | |||||
Decrease of ownership interest percentage | 8.79% | 8.79% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revision of Previously Issued Financial Statements - Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revision of Previously Issued Financial Statements | ||||
Cryptocurrency assets | $ 14,972 | $ 53,190 | ||
Total current assets | 35,336 | 93,256 | ||
TOTAL ASSETS | 86,804 | 294,229 | ||
Accumulated deficit and statutory reserve | (542,169) | (386,754) | ||
Total shareholders' equity | 53,128 | 205,263 | $ 59,850 | $ 81,741 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 86,804 | 294,229 | ||
As Reported | ||||
Revision of Previously Issued Financial Statements | ||||
Cryptocurrency assets | 55,077 | |||
Total current assets | 95,143 | |||
TOTAL ASSETS | 296,116 | |||
Accumulated deficit and statutory reserve | (384,867) | |||
Total shareholders' equity | 207,150 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 296,116 | |||
Effect of Adjustment | ||||
Revision of Previously Issued Financial Statements | ||||
Cryptocurrency assets | (1,887) | |||
Total current assets | (1,887) | |||
TOTAL ASSETS | (1,887) | |||
Accumulated deficit and statutory reserve | (1,887) | |||
Total shareholders' equity | (1,887) | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (1,887) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revision of Previously Issued Financial Statements - Consolidated Statement of Comprehensive Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revision of Previously Issued Financial Statements | ||||
Net gain on disposal of cryptocurrency assets | $ 8,360 | $ 11,392 | ||
Impairment of cryptocurrency assets | (18,435) | (38,319) | $ 0 | |
Operating (loss) income from continuing operations | (168,644) | (70,237) | (16,986) | |
Loss before income tax from continuing operations | (158,427) | (65,812) | (23,354) | |
Net loss from continuing operations | (158,427) | (65,453) | (23,324) | |
Net loss | (158,427) | (74,374) | (32,103) | |
Net loss attributable to BIT Mining Limited | $ (155,415) | $ (62,403) | $ (32,412) | |
Net loss from continuing operations - Basic | $ (0.18) | $ (0.09) | $ (0.05) | |
Net loss from continuing operations - Diluted | (0.18) | (0.09) | (0.05) | |
Net loss per share, Basic | (0.18) | (0.10) | (0.07) | |
Net loss per share, Diluted | (0.18) | (0.10) | (0.07) | |
Losses per American Depositary Share ("ADS*") (1 ADS represnents 100 Class A ordinary shares)-Basic and Diluted: | ||||
Net loss from continuing operations | [1] | (17.84) | (8.62) | (5.42) |
Net loss | [1] | $ (17.84) | $ (10.02) | $ (7.53) |
Impairment of goodwill | $ (26,569) | |||
Class A Ordinary shares | ||||
Revision of Previously Issued Financial Statements | ||||
Net loss from continuing operations | $ (155,415) | $ (53,661) | $ (23,324) | |
Net loss from continuing operations - Basic | $ (0.18) | $ (0.09) | $ (0.05) | |
Net loss per share, Diluted | $ (0.18) | $ (0.09) | $ (0.05) | |
Class A Ordinary shares | Minimum | ||||
Losses per American Depositary Share ("ADS*") (1 ADS represnents 100 Class A ordinary shares)-Basic and Diluted: | ||||
Adjustment of ADS Ratio | 0.10% | |||
Class A Ordinary shares | Maximum | ||||
Losses per American Depositary Share ("ADS*") (1 ADS represnents 100 Class A ordinary shares)-Basic and Diluted: | ||||
Adjustment of ADS Ratio | 0.10% | |||
As Reported | ||||
Revision of Previously Issued Financial Statements | ||||
Net gain on disposal of cryptocurrency assets | $ 6,717 | |||
Impairment of cryptocurrency assets | (31,757) | |||
Operating (loss) income from continuing operations | (68,350) | |||
Loss before income tax from continuing operations | (63,925) | |||
Net loss from continuing operations | (63,566) | |||
Net loss | (72,487) | |||
Net loss attributable to BIT Mining Limited | $ (60,516) | |||
Net loss from continuing operations - Basic | $ (0.08) | |||
Net loss from continuing operations - Diluted | (0.08) | |||
Net loss per share, Basic | (0.09) | |||
Net loss per share, Diluted | (0.09) | |||
Losses per American Depositary Share ("ADS*") (1 ADS represnents 100 Class A ordinary shares)-Basic and Diluted: | ||||
Net loss from continuing operations | (8.32) | |||
Net loss | $ (9.72) | |||
Effect of Adjustment | ||||
Revision of Previously Issued Financial Statements | ||||
Net gain on disposal of cryptocurrency assets | $ 4,675 | |||
Impairment of cryptocurrency assets | (6,562) | |||
Operating (loss) income from continuing operations | (1,887) | |||
Loss before income tax from continuing operations | (1,887) | |||
Net loss from continuing operations | (1,887) | |||
Net loss | (1,887) | |||
Net loss attributable to BIT Mining Limited | $ (1,887) | |||
Net loss from continuing operations - Basic | $ (0.01) | |||
Net loss from continuing operations - Diluted | (0.01) | |||
Net loss per share, Basic | (0.01) | |||
Net loss per share, Diluted | (0.01) | |||
Losses per American Depositary Share ("ADS*") (1 ADS represnents 100 Class A ordinary shares)-Basic and Diluted: | ||||
Net loss from continuing operations | (0.30) | |||
Net loss | $ (0.30) | |||
[1]American Depositary Shares, which are traded on the NYSE. Each ADS represents one hundred Class A ordinary shares of the Company. Losses per ADS have been retrospectively adjusted for the ADS Ratio Change from the former ADS Ratio of 1 ADS to 10 Class A ordinary shares, to the current ADS Ratio of 1 ADS to 100 Class A ordinary shares, effective on December 23, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revision of Previously Issued Financial Statements - Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revision of Previously Issued Financial Statements | |||
Net loss | $ (158,427) | $ (74,374) | $ (32,103) |
Impairment of cryptocurrency assets | 18,435 | 38,319 | $ 0 |
Net gain on disposal of cryptocurrency assets | $ (8,360) | (11,392) | |
As Reported | |||
Revision of Previously Issued Financial Statements | |||
Net loss | (72,487) | ||
Impairment of cryptocurrency assets | 31,757 | ||
Net gain on disposal of cryptocurrency assets | (6,717) | ||
Effect of Adjustment | |||
Revision of Previously Issued Financial Statements | |||
Net loss | (1,887) | ||
Impairment of cryptocurrency assets | 6,562 | ||
Net gain on disposal of cryptocurrency assets | $ (4,675) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revision of Previously Issued Financial Statements - Consolidated Statement of Changes in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revision of Previously Issued Financial Statements | |||
Net (loss) income for the year | $ (158,427) | $ (74,374) | $ (32,103) |
Balance | 53,128 | 205,263 | 59,850 |
Accumulated deficit [Member] | |||
Revision of Previously Issued Financial Statements | |||
Net (loss) income for the year | (155,415) | (62,403) | (32,412) |
Balance | $ (542,169) | (386,754) | $ (324,351) |
As Reported | |||
Revision of Previously Issued Financial Statements | |||
Net (loss) income for the year | (72,487) | ||
Balance | 207,150 | ||
As Reported | Accumulated deficit [Member] | |||
Revision of Previously Issued Financial Statements | |||
Net (loss) income for the year | (60,516) | ||
Balance | (384,867) | ||
Effect of Adjustment | |||
Revision of Previously Issued Financial Statements | |||
Net (loss) income for the year | (1,887) | ||
Balance | (1,887) | ||
Effect of Adjustment | Accumulated deficit [Member] | |||
Revision of Previously Issued Financial Statements | |||
Net (loss) income for the year | (1,887) | ||
Balance | $ (1,887) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Machinery and equipment- Data Center equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Residual | 5% |
Electronics and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Residual | 5% |
Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated Residual | 5% |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements, Estimated Useful Life | Shorter of lease term or the estimated useful lives of the assets |
Minimum | Machinery and equipment- Data Center equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Minimum | Machinery and equipment- Mining Machinesand other equipments | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Minimum | Electronics and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum | Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Maximum | Machinery and equipment- Mining Machinesand other equipments | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | Electronics and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Maximum | Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Computer software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Internet domain name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Licensing agreement | |
Finite-Lived Intangible Assets [Line Items] | |
License agreement, Estimated Useful Life | Agreement term |
Licenses and brand name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Mobile applications and software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Internet domain name and brand name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Strategic contract | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Unpatented technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Jul. 26, 2022 | Jan. 31, 2021 | |
Summary Of Accounting Policies | ||||||||||
Currency exchange rate | 32,326.29 | |||||||||
Cumulative foreign currency translation adjustment | $ 1,481 | $ 2,317 | ||||||||
Cash and cash equivalents, maturities | three months | |||||||||
Impairment of cryptocurrencies | $ 18,435 | 38,319 | 0 | |||||||
Impairment of goodwill | 26,569 | |||||||||
Impairment of intangible assets | 56,094 | 56 | 0 | |||||||
Impairment of property and equipment | 35,224 | 22,392 | ||||||||
Impairment loss for right-of-use assets | 0 | 387 | 0 | |||||||
Impairment of long-term investments | 2,250 | 0 | 4,787 | |||||||
Cost of mining pool services | $ 1,315,621 | $ 1,315,621 | $ 1,315,621 | 635,300 | ||||||
Cost of mining pool services after inter segment elimination | $ 1,279,757 | 591,565 | ||||||||
Cost of data center services | 12,673 | 10,982 | ||||||||
Cost of Cryptocurrency Mining | 28,119 | 14,900 | ||||||||
Cost of cryptocurrency mining after inter-segment elimination | 20,526 | 12,132 | ||||||||
Depreciation fees | 24,050 | 15,062 | 6,328 | |||||||
Amortization of intangible assets | 9,132 | 5,293 | 318 | |||||||
Changes in fair value of derivative instrument | 3,696 | |||||||||
Cost of Services [Member] | ||||||||||
Summary Of Accounting Policies | ||||||||||
Depreciation fees | 22,935 | 13,819,000 | 0 | |||||||
Amortization of intangible assets | 9,090,000 | 5,058,000 | 229,000 | |||||||
accrued expenses and other current liabilities | ||||||||||
Summary Of Accounting Policies | ||||||||||
Advance from customers balance | $ 744 | $ 744 | 384 | 744 | ||||||
Deferred revenue | 361 | 640 | $ 753 | |||||||
Multi Group | ||||||||||
Summary Of Accounting Policies | ||||||||||
Impairment of intangible assets | $ (26,909) | |||||||||
Loto Interactive Limited | ||||||||||
Summary Of Accounting Policies | ||||||||||
Currency exchange rate | 0.1274 | |||||||||
Impairment of intangible assets | 56 | |||||||||
Impairment of property and equipment | 22,392 | |||||||||
Impairment loss for right-of-use assets | 387 | |||||||||
BTC.com and Asgard Data Centers | ||||||||||
Summary Of Accounting Policies | ||||||||||
Impairment of intangible assets | 56,094 | |||||||||
Impairment of property and equipment | 35,224 | |||||||||
Alliance International Technologies Limited | ||||||||||
Summary Of Accounting Policies | ||||||||||
Changes in fair value of contingent consideration in amount of gain | 1,247 | $ 13,936 | ||||||||
Impairment of intangible assets | $ 48,555 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplier Concentration Risk | Costs | Supplier A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 17.60% | 17.50% |
Customer Concentration Risk | Product A | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 11% |
DISCONTINUED OPERATIONS - Group
DISCONTINUED OPERATIONS - Group calculated a loss resulting from such disposition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 23, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
DISCONTINUED OPERATIONS | |||
Loss on disposal of lottery business related VIEs | $ (6,697) | ||
Discontinued Operations [Member] | Variable Interest Entity, Primary Beneficiary | |||
DISCONTINUED OPERATIONS | |||
Cash and cash equivalents | $ 1,200 | ||
Restricted Cash | 194 | ||
Prepayments and other receivables | 2,032 | ||
Property and equipment, net | 1,346 | ||
Intangible assets, net | 102 | ||
Long-term investments | 492 | ||
Other non-current assets | 236 | ||
Accrued payroll and welfare payable | (173) | ||
Accrued expenses and other current liabilities | (833) | ||
Long-term payables | (61) | ||
Total non-current assets | 4,535 | ||
Noncontrolling interest of lottery business related VIEs | 2,162 | ||
Less: Net assets of lottery business related VIEs contributable to the Company | 6,697 | ||
Loss on disposal of lottery business related VIEs | $ (6,697) | $ (6,697) | |
Related party payables | $ 31,195 | ||
Payment of related party debt | $ 27,987 |
DISCONTINUED OPERATIONS - Conde
DISCONTINUED OPERATIONS - Condensed cash flows of lottery business related VIEs (Details) - Discontinued Operations [Member] - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | ||
Net cash used in operating activities | $ (2,985) | $ (5,960) |
Net cash (used in) provided by investing activities | 953 | 2,826 |
Net cash provided by (used in) financing activities | (26,955) | 3,026 |
Effect of foreign exchange on cash | $ 381 | $ 1,889 |
DISCONTINUED OPERATIONS - Opera
DISCONTINUED OPERATIONS - Operating results from discontinued operations included in the Group's consolidated statements of comprehensive loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Major classes of line items constituting pre-tax profit of discontinued operations | |||
Income tax expense | $ (359) | $ (30) | |
Loss from discontinued operations, net of income tax | (2,224) | (8,779) | |
Loss on disposal of lottery business related VIEs | (6,697) | ||
Net loss from discontinued operations, net of applicable income taxes | (8,921) | (8,779) | |
Discontinued Operations [Member] | Variable Interest Entity, Primary Beneficiary | |||
Major classes of line items constituting pre-tax profit of discontinued operations | |||
Revenues | 1,269 | 1,000 | |
Cost of revenue | (192) | (419) | |
Sales and marketing | (556) | (1,284) | |
General and administrative | (2,322) | (7,822) | |
Service development expenses | (496) | (2,444) | |
Other income that are not major | 73 | 1,690 | |
Loss from discontinued operations, before income tax | (2,224) | (9,279) | |
Income tax expense | 500 | ||
Loss from discontinued operations, net of income tax | (2,224) | (8,779) | |
Loss on disposal of lottery business related VIEs | $ (6,697) | (6,697) | |
Net loss from discontinued operations, net of applicable income taxes | $ (8,921) | $ (8,779) |
BUSINESS COMBINATION AND ASSET
BUSINESS COMBINATION AND ASSET ACQUISITION (Calculation of the purchase consideration) (Details) ¥ in Thousands, $ in Thousands, $ in Thousands | 3 Months Ended | |||||||
Jun. 18, 2021 HKD ($) | Jun. 18, 2021 USD ($) | Apr. 15, 2021 USD ($) | Mar. 21, 2021 USD ($) | Mar. 21, 2021 CNY (¥) | Mar. 31, 2021 HKD ($) | Mar. 31, 2021 USD ($) | Jan. 31, 2021 | |
Business Acquisition [Line Items] | ||||||||
Exchange rate | 32,326.29 | |||||||
Total allocated purchase price | $ 85,128 | |||||||
Loto Interactive | ||||||||
Business Acquisition [Line Items] | ||||||||
Exchange rate | 0.1286 | 0.1286 | ||||||
Re-measurement of the fair value of previously-held equity interest | $ 79,280 | $ 10,200 | ||||||
Total consideration | $ 26,224 | $ 3,378 | 105,000 | 13,503 | ||||
Fair value of noncontrolling shareholders | 155,715 | 20,029 | ||||||
Total allocated purchase price | $ 339,995 | $ 43,732 | ||||||
Ganzi Changhe Data Center | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration | $ 13,841 | ¥ 88,200 |
BUSINESS COMBINATION AND ASSE_2
BUSINESS COMBINATION AND ASSET ACQUISITION (purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date) (Details) $ in Thousands, $ in Thousands | Jul. 12, 2022 HKD ($) | Jul. 12, 2022 USD ($) | Apr. 15, 2021 USD ($) | Mar. 31, 2021 HKD ($) | Mar. 31, 2021 USD ($) |
Purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date | |||||
Current assets | $ 73,389 | ||||
Other non-current assets | 31 | ||||
Assets transferred to Viking Data Centers | 131,979 | ||||
Current liabilities | 73,420 | ||||
Total liabilities assumed | 73,420 | ||||
Net identifiable assets acquired | $ 58,559 | ||||
Loto Interactive | |||||
Purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date | |||||
Current assets | $ 232,103 | $ 29,854 | |||
Property and equipment, net | $ 24,443 | $ 3,114 | 201,713 | 25,946 | |
Other non-current assets | 33,488 | 4,266 | 71,728 | 9,226 | |
Assets transferred to Viking Data Centers | 505,544 | 65,026 | |||
Current liabilities | 163,161 | 20,987 | |||
Non-current liabilities | 2,388 | 307 | |||
Total liabilities assumed | 165,549 | 21,294 | |||
Net identifiable assets acquired | $ (43,412) | $ (5,542) | $ 339,995 | $ 43,732 |
BUSINESS COMBINATION AND ASSE_3
BUSINESS COMBINATION AND ASSET ACQUISITION - Gain of disposal of subsidiaries (Details) $ in Thousands, $ in Thousands | Jul. 12, 2022 HKD ($) | Jul. 12, 2022 USD ($) | Apr. 15, 2021 USD ($) | Mar. 31, 2021 HKD ($) | Mar. 31, 2021 USD ($) |
Business Acquisition [Line Items] | |||||
Other non-current assets | $ 31 | ||||
Noncontrolling interest of the subsidiaries | $ 58,559 | ||||
Loto Interactive | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 39,174 | $ 4,990 | |||
Amounts due from related parties | 422 | 54 | |||
Prepayments and other receivables | 37,534 | 4,781 | |||
Property and equipment, net | 24,443 | 3,114 | $ 201,713 | $ 25,946 | |
Long-term investments | 3,514 | 448 | |||
Other non-current assets | 33,488 | 4,266 | 71,728 | 9,226 | |
Accounts payable | (3,206) | (408) | |||
Amounts due to related parties | (6,099) | (777) | |||
Accrued payroll and welfare payable | (12,623) | (1,608) | |||
Other current liabilities | (4,756) | (606) | |||
Income tax payable | (3,278) | (418) | |||
Other non-current liabilities | (800) | (102) | |||
Net assets of the subsidiaries | 107,813 | 13,734 | |||
Noncontrolling interest of the subsidiaries | (43,412) | (5,542) | $ 339,995 | $ 43,732 | |
Book basis of the non-controlling interest in Asgard | (13,497) | (1,719) | |||
Net assets of the subsidiaries attributable to the Company | 50,904 | 6,473 | |||
Reclassification of accumulated translation adjustment into gain on disposal | 1,241 | 184 | |||
Consideration | 78,308 | 9,997 | |||
Gain from disposal of subsidiaries | $ 26,163 | $ 3,340 |
BUSINESS COMBINATION AND ASSE_4
BUSINESS COMBINATION AND ASSET ACQUISITION - Cash flows of the disposal (Details) - Jul. 26, 2022 - Loto Interactive $ in Thousands, $ in Thousands | HKD ($) | USD ($) |
Business Acquisition [Line Items] | ||
Cash and cash equivalents deconsolidated | $ (39,174) | $ (4,990) |
Proceeds from the disposal of subsidiaries | 78,308 | 9,997 |
Proceeds from disposal of subsidiaries, net of cash disposed | $ 39,134 | $ 5,007 |
BUSINESS COMBINATION AND ASSE_5
BUSINESS COMBINATION AND ASSET ACQUISITION (The calculation of the purchase consideration) (Details) $ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 15, 2021 USD ($) shares | Mar. 31, 2021 HKD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 shares | Jan. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Exchange rate | 32,326.29 | ||||
Total allocated purchase price | $ 85,128 | ||||
Blockchain Alliance Technologies | |||||
Business Acquisition [Line Items] | |||||
Fair value of 16,038,930 Class A ordinary shares at acquisition close on May 31, 2022 | 69,945 | ||||
Contingent consideration | 15,183 | ||||
Total allocated purchase price | $ 85,128 | ||||
Loto Interactive | |||||
Business Acquisition [Line Items] | |||||
Exchange rate | 0.1286 | 0.1286 | |||
Fair value of 16,038,930 Class A ordinary shares at acquisition close on May 31, 2022 | $ 79,280 | $ 10,200 | |||
Total allocated purchase price | $ 339,995 | $ 43,732 | |||
Class A Ordinary shares | Blockchain Alliance Technologies | |||||
Business Acquisition [Line Items] | |||||
Ordinary shares already held at acquisition | shares | 44,353,435 | ||||
Number of shares issued for acquisition | shares | 44,353,435 | ||||
Class A Ordinary shares | Blockchain Alliance Technologies | if the BTC.com Pool Businesses records net operating profit | Maximum | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued for acquisition | shares | 22,176,718 |
BUSINESS COMBINATION AND ASSE_6
BUSINESS COMBINATION AND ASSET ACQUISITION (The purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date) (Details) - USD ($) $ in Thousands | Apr. 15, 2021 | Dec. 31, 2021 |
Purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date | ||
Current assets | $ 73,389 | |
Acquired intangible assets | 58,559 | |
Other non-current assets | 31 | |
Assets transferred to Viking Data Centers | 131,979 | |
Other current liabilities | 73,420 | |
Total liabilities assumed | 73,420 | |
Net identifiable assets acquired | 58,559 | |
Total consideration | 85,128 | |
Goodwill | $ 26,569 | $ 26,569 |
Amortization Years | 10 years | |
Blockchain Alliance Technologies | ||
Purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date | ||
Total consideration | $ 85,128 |
BUSINESS COMBINATION, ASSET A_3
BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (Calculation of the purchase consideration) (Details) - Acquisition of Bee Computing $ in Thousands | May 31, 2022 USD ($) shares |
Asset Acquisition [Line Items] | |
Number of shares issued to Selling Shareholders | shares | 16,038,930 |
Asset Acquisition, Consideration Transferred [Abstract] | |
Fair value of 16,038,930 Class A ordinary shares at acquisition close on May 31, 2022 | $ 3,416 |
Effective settlement of preexisting loans | 18,397 |
Total purchase consideration | $ 21,813 |
Class A Ordinary shares | if the BTC.com Pool Businesses records net operating profit | Maximum | |
Asset Acquisition [Line Items] | |
Number of shares issued to Selling Shareholders | shares | 16,038,930 |
BUSINESS COMBINATION, ASSET A_4
BUSINESS COMBINATION, ASSET ACQUISITION AND DISPOSAL OF SUBSIDIARY (Estimated fair value of the assets acquired) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Estimated fair value of the assets acquired | |||
Prepayments and other receivables | $ 8,310 | $ 21,525 | |
Total identifiable assets acquired | $ 86,804 | $ 294,229 | |
Unpatented technology | |||
Estimated fair value of the assets acquired | |||
Estimated Useful Life | 3 years | ||
Acquisition of Bee Computing | |||
Estimated fair value of the assets acquired | |||
Cash | $ 25 | ||
Prepayments and other receivables | 18,155 | ||
Acquired intangible asset | 3,633 | ||
Total identifiable assets acquired | 21,813 | ||
Total purchase consideration | $ 21,813 | ||
Acquisition of Bee Computing | Unpatented technology | |||
Estimated fair value of the assets acquired | |||
Estimated Useful Life | 3 years |
BUSINESS COMBINATION AND ASSE_7
BUSINESS COMBINATION AND ASSET ACQUISITION (Narrative 1) (Details) $ / shares in Units, $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jul. 12, 2022 USD ($) | Jul. 12, 2022 HKD ($) | Jun. 18, 2021 USD ($) shares | Jun. 18, 2021 HKD ($) shares | Mar. 31, 2021 USD ($) shares | Mar. 31, 2021 HKD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Jul. 26, 2022 | Jan. 31, 2021 | Dec. 31, 2020 $ / shares | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||||||||||
Shares issued per share | $ / shares | $ 0.269 | |||||||||||
Carrying amount of equity method investments | $ 2,380 | $ 2,991 | ||||||||||
Gain on previously held equity interest | $ 5,500 | |||||||||||
Exchange rate | 32,326.29 | |||||||||||
Loto Interactive | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Price per share for business combination | $ / shares | $ 0.62 | |||||||||||
Percentage of Equity Securities Without Readily Determinable Fair Value | 33.74% | 33.74% | ||||||||||
Number of shares acquired | shares | 30,642,534 | 30,642,534 | 169,354,839 | 169,354,839 | ||||||||
Total consideration paid | $ 3,378 | $ 26,224,000 | $ 13,503 | $ 105,000,000 | ||||||||
Ownership interest held | 59.80% | 59.80% | 54.20% | |||||||||
Gain on previously held equity interest | $ 5,500 | |||||||||||
Exchange rate | 0.1286 | |||||||||||
Loto Interactive Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of equity interest acquired | 8.79% | |||||||||||
Percentage of voting interests acquired | 8.79% | |||||||||||
Consideration on sale of ownership interest | $ 78,308 | $ 280 | ||||||||||
Exchange rate | 0.1274 | |||||||||||
Loto Interactive Limited | Manful Kingdom Limited [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of ownership interest sold | 51% | 51% |
BUSINESS COMBINATION AND ASSE_8
BUSINESS COMBINATION AND ASSET ACQUISITION (Narrative 2) (Details) - $ / shares | 12 Months Ended | |||||
Jul. 12, 2022 | May 31, 2022 | Apr. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||||
Ordinary shares, par value per share | $ 0.00005 | |||||
Bee Computing (HK) Limited("Bee Computing") | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued for acquisition | 16,038,930 | |||||
Loto Interactive Limited | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued for acquisition | 279,673,200 | |||||
Class A Ordinary shares | ||||||
Business Acquisition [Line Items] | ||||||
Ordinary shares, par value per share | $ 0.00005 | $ 0.00005 | ||||
Class A Ordinary shares | if the BTC.com Pool Businesses records net operating loss | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares repurchased for acquisition | 4,435,344 | |||||
Class A Ordinary shares | Blockchain Alliance Technologies | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued for acquisition | 44,353,435 | |||||
Ordinary shares, par value per share | $ 0.00005 | |||||
Class A Ordinary shares | Blockchain Alliance Technologies | if the BTC.com Pool Businesses records net operating profit | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued for acquisition | 22,176,718 |
BUSINESS COMBINATION AND ASSE_9
BUSINESS COMBINATION AND ASSET ACQUISITION (Narrative 3) (Details) - Loto Interactive $ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 18, 2021 HKD ($) shares | Jun. 18, 2021 USD ($) shares | Mar. 31, 2021 HKD ($) shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of shares acquired | shares | 30,642,534 | 30,642,534 | 169,354,839 | 169,354,839 | |
Total consideration paid | $ 26,224 | $ 3,378 | $ 105,000 | $ 13,503 | |
Ownership interest held | 59.80% | 59.80% | 54.20% | 54.20% | |
Total acquisition costs | $ | $ 796 |
BUSINESS COMBINATION AND ASS_10
BUSINESS COMBINATION AND ASSET ACQUISITION (Narrative 4) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Estimated useful lives | 10 years | |||
Amortization expense of acquired Intangible assets | $ 9,132 | $ 5,293 | $ 318 | |
Changes in fair value of contingent considerations | 1,247 | 13,936 | ||
Impairment of goodwill | 26,569 | |||
Blockchain Alliance Technologies | ||||
Business Acquisition [Line Items] | ||||
Total acquisition costs | $ 766 | |||
Fair value of the contingent consideration | 1,247 | |||
Changes in fair value of contingent considerations | 1,247 | $ 13,936 | ||
Internet domain name and brand name | Blockchain Alliance Technologies | ||||
Business Acquisition [Line Items] | ||||
Estimated useful lives | 10 years | |||
Impairment of goodwill | $ 48,555 |
BUSINESS COMBINATION AND ASS_11
BUSINESS COMBINATION AND ASSET ACQUISITION (Narrative 5) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Strategic contract | |
Business combination [Line Items] | |
Estimated Useful Life | 5 years |
INVESTMENTS - (Schedule of Long
INVESTMENTS - (Schedule of Long-term Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
INVESTMENTS | ||
Carrying amount of equity investments without readily determinable fair value | $ 5,058 | $ 7,670 |
Carrying amount of equity method investments | 2,991 | 2,380 |
Carrying amount of long-term investments | $ 8,049 | $ 10,050 |
INVESTMENTS (Schedule of Invest
INVESTMENTS (Schedule of Investments Categorized by Investment Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cost method and equity method investments | |||
Cost of equity investments without readily determinable fair value | $ 9,181 | $ 9,543 | |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount | 4,123 | 1,873 | |
Impairment on equity investment at fair value without readily determinable fair value | (2,250) | 0 | $ 0 |
Operating loss from equity method investments for discontinued operation | 0 | (399) | 299 |
Income (loss) from equity method investments | $ 164 | $ (1,184) | $ (1,865) |
Income (Loss), Equity Method Investment in Discontinued Operation after Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest |
PTE (HONG KONG) LTD | |||
Cost method and equity method investments | |||
Impairment on equity investment at fair value without readily determinable fair value | $ (1,000) | ||
Cheerful Interactive Limited | |||
Cost method and equity method investments | |||
Impairment on equity investment at fair value without readily determinable fair value | (1,250) | ||
Loto Interactive | |||
Cost method and equity method investments | |||
Impairment loss on equity investment | $ 0 | $ 0 | $ (4,787) |
CRYPTOCURRENCY ASSETS (Details)
CRYPTOCURRENCY ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CRYPTOCURRENCY ASSETS | |||
Beginning balance | $ 53,190 | ||
Receipts from issuance of ordinary shares for private placement | $ 19,289 | ||
Cryptocurrencies acquired in connection with business combination | 73,184 | $ 0 | |
Cryptocurrencies borrowing | 10,222 | ||
Cryptocurrencies to be distributed for promotion activities on behalf of a third party | 3,179 | 0 | |
Deposits received from customers of mining data center | 2,192 | 3,965 | |
Distribution to pool participants | (611,747) | (1,282,143) | |
Repayment of deposit in the form of cryptocurrencies | (6,586) | 0 | |
Repayment of cryptocurrencies borrowings | (6,523) | ||
Payment of service expense and long-lived assets | (6,939) | (2,295) | |
Cryptocurrencies paid in connection with asset acquisition | (1,731) | 0 | |
Disposal of cryptocurrency assets | (43,787) | (32,924) | |
Utility fee received from customers of mining data center | 3,658 | ||
Cyberattack loss | (3,100) | ||
Others | 231 | (379) | |
Impairment of cryptocurrency assets | (18,435) | (38,319) | $ 0 |
Ending balance of cryptocurrency assets, net | 14,972 | 53,190 | |
Mining pool business | |||
CRYPTOCURRENCY ASSETS | |||
Cryptocurrencies mined | 592,583 | 1,275,238 | |
Mining business | |||
CRYPTOCURRENCY ASSETS | |||
Cryptocurrencies mined | $ 47,126 | $ 39,013 |
CRYPTOCURRENCY ASSETS - Additio
CRYPTOCURRENCY ASSETS - Additional information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2022 USD ($) item | Dec. 31, 2022 USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | ||
Cash deposits pledged | $ 9,628 | |
Loss on disposal of cryptocurrencies | $ 3,322 | |
Loan and pledge agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Loan period | 1 year | |
Loan principal | $ 6,306 | |
Percentage of the current Fair Market Value considered for loan | 65% | |
Fixed interest rate per annum | 3.25% | |
Number of ethereum lend | item | 4,000 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Summary of Prepayments and Other Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables from third party payment service providers | $ 504 | $ 574 |
Utility deposits | 630 | 2,820 |
Deferred expense | 1,640 | 401 |
Loans to the third parties | 1,259 | 9,328 |
Deductible value-added input tax | 3,535 | 7,458 |
Others | 742 | 944 |
Prepayments and other receivables | $ 8,310 | 21,525 |
Bee Computing (HK) Limited("Bee Computing") | ||
Loans to the third parties | $ 7,965 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, cost | $ 95,761 | $ 114,969 |
Less: Accumulated depreciation | (34,151) | (22,284) |
Less: Provision for impairment | (34,390) | (22,486) |
Property and equipment, net | 27,220 | 70,199 |
Machinery and Equipment | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, cost | 79,941 | 95,979 |
Electronics and office equipments | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, cost | 512 | 1,280 |
Motor vehicles | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, cost | 901 | 966 |
Leasehold improvements | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, cost | 5,704 | 9,082 |
Construction in Progress | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, cost | $ 8,703 | $ 7,662 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |||
Depreciation expense of Continuing Operations | $ 24,050 | $ 14,328 | $ 2,253 |
Depreciation expense of discontinued Operations | 0 | 734 | 4,075 |
Provision for impairment from continuing operations | 34,390 | 22,486 | |
Mining machines | |||
PROPERTY AND EQUIPMENT, NET | |||
Provision for impairment from continuing operations | $ 35,224 | ||
Data center | |||
PROPERTY AND EQUIPMENT, NET | |||
Provision for impairment from continuing operations | $ 22,392 | $ 0 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |||
Cost: | $ 110,875 | $ 115,881 | |
Accumulated amortization: | (24,559) | (16,985) | |
Impairment : | (83,002) | (26,965) | |
Intangible assets, net | 3,314 | 71,931 | |
Impairment of intangible assets | (56,094) | (56) | $ 0 |
Computer software | |||
INTANGIBLE ASSETS, NET | |||
Cost: | 3,538 | 3,988 | |
Accumulated amortization: | (2,953) | (3,317) | |
Impairment : | (524) | (581) | |
License agreement | |||
INTANGIBLE ASSETS, NET | |||
Cost: | 22,252 | 22,252 | |
Accumulated amortization: | (5,470) | (5,470) | |
Impairment : | (16,782) | (16,782) | |
Internet domain name | |||
INTANGIBLE ASSETS, NET | |||
Cost: | 150 | 150 | |
Accumulated amortization: | (25) | (10) | |
Brand name | |||
INTANGIBLE ASSETS, NET | |||
Cost: | 71,292 | 71,292 | |
Accumulated amortization: | (13,135) | (7,279) | |
Impairment : | (58,157) | (9,602) | |
Strategic contract | |||
INTANGIBLE ASSETS, NET | |||
Cost: | 10,010 | 18,199 | |
Accumulated amortization: | (2,471) | $ (909) | |
Impairment : | (7,539) | ||
Unpatented technology | |||
INTANGIBLE ASSETS, NET | |||
Cost: | 3,633 | ||
Accumulated amortization: | $ (505) |
INTANGIBLE ASSETS, NET (Sched_2
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
INTANGIBLE ASSETS, NET | ||
2023 | $ 1,273 | |
2024 | 1,238 | |
2025 | 723 | |
2026 | 15 | |
2027 | 15 | |
2028 and thereafter | 50 | |
Intangible assets, net | $ 3,314 | $ 71,931 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | ||||
Impairment of intangible assets | $ 56,094 | $ 56 | $ 0 | |
Amortization expense continuing operations | 9,132 | 5,261 | 252 | |
Amortization expense discontinued operations | 0 | 32 | $ 66 | |
Alliance International Technologies Limited("Alliance International Technologies") | ||||
INTANGIBLE ASSETS, NET | ||||
Impairment of intangible assets | 48,555 | |||
Asgard Data Centers | ||||
INTANGIBLE ASSETS, NET | ||||
Impairment of intangible assets | 7,539 | |||
Multi Group | ||||
INTANGIBLE ASSETS, NET | ||||
Impairment of intangible assets | $ (26,909) | |||
Computer software Of loto interactive | ||||
INTANGIBLE ASSETS, NET | ||||
Impairment of intangible assets | $ 56 | |||
Disposal of Loto Interactive | ||||
INTANGIBLE ASSETS, NET | ||||
Impairment of intangible assets | $ 56 |
OPERATING LEASES (Operating lea
OPERATING LEASES (Operating lease related assets and liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING LEASES | |||
Right-of-use assets | $ 4,135 | $ 6,553 | |
Impairment of right-of-use assets | 0 | (387) | $ 0 |
Right-of-use assets, net | 4,135 | 6,166 | |
Operating lease liabilities - current | 1,367 | 2,213 | |
Operating lease liabilities - non-current | 2,837 | 4,569 | |
Total operating lease liabilities | $ 4,204 | $ 6,782 |
OPERATING LEASES (Summary of ma
OPERATING LEASES (Summary of maturity of operating leases liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
OPERATING LEASES | ||
2023 | $ 1,345 | |
2024 | 1,134 | |
2025 | 1,134 | |
2026 | 850 | |
Total | 4,463 | |
Less: imputed interest | (259) | |
Present value of lease liabilities | $ 4,204 | $ 6,782 |
OPERATING LEASES (Narratives) (
OPERATING LEASES (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING LEASES | |||
Operating lease costs | $ 1,611 | $ 1,223 | $ 121 |
Short term lease costs | 976 | 270 | 405 |
Cash paid amounts included in measurement of operating lease liabilities | $ 1,725 | 735 | $ 52 |
Weighted average remaining lease term | 3 years 7 months 24 days | ||
Weighted average discount rate | 3.35% | ||
Operating lease expenses | $ 387 | ||
Minimum | |||
OPERATING LEASES | |||
Operating lease remaining lease term | 8 months 1 day | ||
Maximum | |||
OPERATING LEASES | |||
Operating lease remaining lease term | 3 years 9 months |
ACCOUNTS PAYABLES (Details)
ACCOUNTS PAYABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ACCOUNTS PAYABLES | ||
Pool participants payable | $ 19,761 | $ 53,400 |
Utility and service cost payable | 3,636 | 983 |
Others | 28 | 55 |
Accounts payable | $ 23,425 | $ 54,438 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Advance from end users | $ 384 | $ 5,237 |
Deposit from customers | 1,302 | 3,965 |
Business tax and other taxes payable | 228 | 255 |
Professional fees and services payable | 1,762 | 4,033 |
Promotional events payables | 370 | 394 |
Decoration payables | 670 | |
Contingent consideration | 1,247 | |
Others | 439 | 3,607 |
Total | $ 5,155 | $ 18,738 |
STATUTORY RESERVE AND RESTRIC_2
STATUTORY RESERVE AND RESTRICTED NET ASSETS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | |
Percentage of after tax profits to be allocated to general reserve fund | 10% |
Variable Interest Entity, Primary Beneficiary | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | |
Percentage of after tax profits to be allocated to general reserve fund | 10% |
Percentage of registered capital | 50% |
PRC Subsidiary and VIEs restricted amount | $ 44,215 |
E-Sun Sky Computer (Shenzhen) Co., Ltd. ("E-Sun Sky Computer") | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | |
Percentage of after tax profits to be allocated to general reserve fund | 10% |
Percentage of registered capital | 50% |
INCOME TAXES (Narrative Summary
INCOME TAXES (Narrative Summary of Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shenzhen Kaisheng | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 25% | 25% | 25% |
Variable Interest Entity, Primary Beneficiary | High-tech Enterprise | Shangmeng Services | |||
INCOME TAXES | |||
Transitional income tax rate period | 3 years | ||
Hong Kong | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 16.50% | 16.50% | |
Taxable Income Upto HKD 2000 | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 8.25% | ||
Taxable Income Over HKD 2000 | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 16.50% | ||
Mainland China | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 25% | ||
Mainland China | Variable Interest Entity, Primary Beneficiary | Youlanguang Technology | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 25% | ||
MALTA | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 35% | ||
Effective income tax rate reconciliation, percent | 5% | ||
CURAAO | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 2% | ||
USA | |||
INCOME TAXES | |||
Statutory EIT rate on taxable income | 21% |
INCOME TAXES (Schedule of Loss
INCOME TAXES (Schedule of Loss before income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Loss before income taxes | $ (158,427) | $ (65,812) | $ (23,354) |
Cayman Islands [Member] | |||
INCOME TAXES | |||
Loss before income taxes | (60,061) | (7,732) | (17,673) |
British Virgin Islands | |||
INCOME TAXES | |||
Loss before income taxes | (1,754) | ||
USA | |||
INCOME TAXES | |||
Loss before income taxes | (31,506) | (1,292) | (80) |
Hong Kong | |||
INCOME TAXES | |||
Loss before income taxes | (62,300) | (26,926) | (710) |
Japan | |||
INCOME TAXES | |||
Loss before income taxes | (79) | ||
MALTA | |||
INCOME TAXES | |||
Loss before income taxes | (421) | (1,152) | (1,410) |
CURAAO | |||
INCOME TAXES | |||
Loss before income taxes | (30) | 114 | 160 |
Cyprus | |||
INCOME TAXES | |||
Loss before income taxes | (6) | ||
Mainland China | |||
INCOME TAXES | |||
Loss before income taxes | $ (2,355) | $ (28,824) | $ (3,556) |
INCOME TAXES (Schedule of Curre
INCOME TAXES (Schedule of Current and Deferred Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Current tax benefit (expense) | $ (1) | |
Deferred tax benefit | $ 359 | 31 |
Income tax benefit | $ 359 | $ 30 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Tax Computed Applying Statutory Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Loss before income taxes | $ (158,427) | $ (65,812) | $ (23,354) |
Income tax computed at applicable tax rates | (26,140) | (10,859) | (5,839) |
Effect of different tax rates in different jurisdictions | (144) | (858) | 323 |
Non-deductible expenses | 12,320 | 5,792 | 3,940 |
Change in valuation allowance | 14,358 | 6,188 | 1,812 |
Effect of EIT reversal for previous years | (359) | (22) | |
Research and development super-deduction | $ (394) | (263) | (235) |
Others | (9) | ||
Income tax expense (benefit) | $ (359) | $ (30) |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INCOME TAXES | |||
Cumulative temporary differences of investments in foreign subsidiaries | ¥ | ¥ 0 | ¥ 0 | |
Unrecognized deferred tax liabilities | ¥ | ¥ 0 | ¥ 0 | |
Entitlement of income tax refund, description | the paying entity is entitled to claim 6/7 of the profit tax paid as refund | ||
Mainland China | |||
INCOME TAXES | |||
Net operating losses | $ | $ 61,513 | ||
Hong Kong | |||
INCOME TAXES | |||
Net operating losses | $ | $ 43,342 | ||
Earliest Tax Year | |||
INCOME TAXES | |||
Net operating losses expiration year | 2023 | ||
Latest Tax Year | |||
INCOME TAXES | |||
Net operating losses expiration year | 2027 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Loss from equity method investment | $ 50 | $ 53 |
Bad debt provision | 887 | 887 |
Impairment of long-lived asset | 30,019 | 7,526 |
Net operating losses ("NOLs") | 26,477 | 16,286 |
Less: valuation allowance | (57,433) | (24,752) |
Total deferred tax assets, net | $ 0 | $ 0 |
EMPLOYEE DEFINED CONTRIBUTION_2
EMPLOYEE DEFINED CONTRIBUTION PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | |||
Amount of employee benefits expensed | $ 1,020 | $ 828 | $ 126 |
SHARE-BASED PAYMENT (Summary of
SHARE-BASED PAYMENT (Summary of Share Option Activity and Related Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of options | ||||
Exercised | (22,029,560) | (125,900) | ||
Weighted average exercise price | ||||
Exercised | $ 0.2 | |||
Restricted shares granted to employees and directors | ||||
Number of options | ||||
Outstanding, Beginning balance | 22,029,560 | 30,884,300 | 13,406,560 | |
Granted | 0 | 25,777,390 | 17,477,740 | |
Forfeited | 0 | 0 | 0 | |
Exercised | (22,029,560) | (34,632,130) | 0 | |
Outstanding, Ending balance | 0 | 22,029,560 | 30,884,300 | 13,406,560 |
Vested and expected to vest | 0 | |||
Exercisable | 0 | |||
Weighted average grant date fair value per share | ||||
Outstanding, Beginning balance | $ 0.42 | $ 0.62 | $ 0.93 | |
Granted | 0 | 0.42 | 0.36 | |
Forfeited | 0 | 0 | 0 | |
Exercised | (0.42) | 0.60 | 0 | |
Outstanding, Ending balance | 0 | $ 0.42 | $ 0.62 | $ 0.93 |
Vested and expected to vest | 0 | |||
Exercisable | $ 0 | |||
Weighted average remaining contractual year | ||||
Outstanding | 9 years 6 months 18 days | 8 years 11 months 23 days | 8 years 6 months 7 days | |
Granted | 9 years 6 months 18 days | 9 years 7 months 9 days | ||
Aggregated intrinsic value | ||||
Outstanding, Beginning balance | $ 13,526 | $ 27,796 | $ 11,530 | |
Granted | 0 | 15,827 | 15,730 | |
Forfeited | 0 | 0 | 0 | |
Exercised | 348 | 21,264 | 0 | |
Outstanding, Ending balance | 0 | $ 13,526 | $ 27,796 | $ 11,530 |
Vested and expected to vest | 0 | |||
Exercisable | $ 0 | |||
Employees and Directors | ||||
Number of options | ||||
Outstanding, Beginning balance | 41,350 | 7,259,020 | 26,001,220 | |
Forfeited | (3,708,680) | (18,616,300) | ||
Exercised | (3,508,990) | (125,900) | ||
Outstanding, Ending balance | 41,350 | 41,350 | 7,259,020 | 26,001,220 |
Vested and expected to vest | 41,350 | |||
Exercisable | 41,350 | |||
Weighted average exercise price | ||||
Outstanding, Beginning balance | $ 0.40 | $ 0.99 | $ 0.96 | |
Forfeited | 2.70 | 3.01 | ||
Exercised | 0.71 | 0.20 | ||
Outstanding, Ending balance | 0.40 | 0.40 | 0.99 | $ 0.96 |
Vested and expected to vest | 0.40 | |||
Exercisable | 0.40 | |||
Weighted average grant date fair value per share | ||||
Outstanding, Beginning balance | 0.97 | 1.09 | 1.25 | |
Forfeited | 1.15 | 1.32 | ||
Exercised | 1 | 0.38 | ||
Outstanding, Ending balance | 0.97 | $ 0.97 | $ 1.09 | $ 1.25 |
Vested and expected to vest | 0.97 | |||
Exercisable | $ 0.97 | |||
Weighted average remaining contractual year | ||||
Outstanding | 9 months 21 days | 1 year 9 months 21 days | 6 months 3 days | 8 months 15 days |
Vested and expected to vest | 9 months 21 days | |||
Exercisable | 9 months 21 days | |||
Aggregated intrinsic value | ||||
Outstanding, Beginning balance | $ 9 | $ 907 | $ 1,590 | |
Exercised | 524 | 88 | ||
Outstanding, Ending balance | $ 9 | $ 907 | $ 1,590 |
SHARE-BASED PAYMENT (Schedule o
SHARE-BASED PAYMENT (Schedule of Share-Based Compensation Expenses Relating to Options Granted) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | $ 4,474 | $ 6,446 | $ 8,047 |
Cost of services | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 1,372 | 1,665 | |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 16 | 694 | |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 2,965 | 4,456 | 5,923 |
Service development expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 137 | 309 | 1,430 |
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 2,428 | 4,833 | 6,692 |
Employees | Cost of services | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 1,372 | 1,665 | |
Employees | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 16 | 694 | |
Employees | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 919 | 2,843 | 4,568 |
Employees | Service development expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 137 | 309 | 1,430 |
Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | 2,046 | 1,613 | 1,355 |
Directors | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expenses | $ 2,046 | $ 1,613 | $ 1,355 |
SHARE-BASED PAYMENT (Narrative)
SHARE-BASED PAYMENT (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Mar. 28, 2021 | Mar. 28, 2011 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award expiration period | 10 years | 10 years | ||||
Maximum percentage of issued and outstanding ordinary shares authorized for issuance under plan | 12% | 12% | ||||
Prefunded Warrants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Exercise price of share | $ 0.09 | $ 0.68 | ||||
Employees and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Number of shares options vested | 41,350 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 3,708,680 | 18,616,300 | ||||
Intrinsic value of options exercised | $ 524 | $ 88 | ||||
Number of vested and non vested options | 41,350 | 41,350 | 7,259,020 | 26,001,220 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 0 | |||||
Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 0 | |||||
Restricted shares granted to employees and directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares granted during period | 0 | 25,777,390 | 17,477,740 | |||
Number of shares options vested | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | 0 | 0 | |||
Intrinsic value of options exercised | $ 348 | $ 21,264 | $ 0 | |||
Number of vested and non vested options | 0 | 22,029,560 | 30,884,300 | 13,406,560 | ||
Weighted-average grant-date fair value per share granted | $ 0 | $ 0.42 | $ 0.36 |
SHARE-BASED PAYMENT (summary _2
SHARE-BASED PAYMENT (summary of warrants (excluding pre-funded warrants) activity and related information ) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted average exercise price | |||
Exercised | $ 0.2 | ||
Prefunded Warrants | |||
Weighted average exercise price | |||
Outstanding, Beginning balance | $ 0.68 | ||
Granted | 0.09 | $ 0.68 | |
Exercised | 0.07 | ||
Outstanding, Ending balance | 0.17 | $ 0.68 | |
Vested and expected to vest | 0.17 | ||
Exercisable | $ 0.17 | ||
Weighted average remaining contractual life | |||
Outstanding | 3 years 25 days | 2 years 6 months 10 days | |
Granted | 3 years 3 months 21 days | 2 years 6 months 10 days | |
Vested and expected to vest | 3 years 25 days | ||
Exercisable | 3 years 25 days | ||
Prefunded Warrants | Class A Ordinary shares | |||
Number of options | |||
Ordinary shares, Beginning balance | 100,000,000 | ||
Ordinary shares, Granted | 679,333,300 | 100,000,000 | |
Ordinary shares, Exercised | (48,000,000) | ||
Ordinary shares, Ending balance | 731,333,300 | 100,000,000 | |
Number of shares options vested | 731,333,300 | ||
Ordinary shares, Exercisable | 731,333,300 |
SHARE-BASED PAYMENT (Additional
SHARE-BASED PAYMENT (Additional information) (Details) - $ / shares | Dec. 23, 2022 | Aug. 19, 2022 | Aug. 16, 2022 | Jun. 27, 2022 | Jul. 12, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Class of warrants to purchase shares | 480,000 | 1,000,000 | |||
Warrants exercise price | $ 6 | $ 0.10 | $ 68.10 | ||
Warrant convertible into common stock ratio | 1% | ||||
Series A Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants to purchase | 1,556,667 | ||||
Warrants exercise price | 6.60 | $ 6.60 | 11 | ||
Series B Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants to purchase | 1,556,667 | ||||
Warrants exercise price | $ 6 | $ 6 | $ 10 | ||
Series A Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Class of warrants to purchase shares | 1,600,000 | ||||
Warrants exercise price | $ 11 | ||||
Each warrant exercisable | 1 | ||||
Series B Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Class of warrants to purchase shares | 1,600,000 | ||||
Warrants exercise price | $ 10 | ||||
Each warrant exercisable | 1 | ||||
Prefunded Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants to purchase | 480,000 | ||||
Prefunded Warrants | Series A Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants to purchase | 1,600,000 | ||||
Prefunded Warrants | Series B Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants to purchase | 1,600,000 |
RELATED PARTY TRANSACTIONS (Amo
RELATED PARTY TRANSACTIONS (Amounts due from a Related Party-non current) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
RELATED PARTY TRANSACTIONS | ||
Amount due from a related party | $ 0 | $ 11,504 |
RELATED PARTY TRANSACTIONS (A_2
RELATED PARTY TRANSACTIONS (Amount due to Related Party) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
RELATED PARTY TRANSACTIONS | ||
Amount due to a related party | $ 0 | $ 8,021 |
Property and equipment, net | ||
RELATED PARTY TRANSACTIONS | ||
Amount due to a related party | 59 | |
Director | ||
RELATED PARTY TRANSACTIONS | ||
Amount due to a related party | 18 | |
Minority Interest Shareholders of Subsidiary for Consideration | ||
RELATED PARTY TRANSACTIONS | ||
Amount due to a related party | 6,320 | |
Data Center Operation | ||
RELATED PARTY TRANSACTIONS | ||
Amount due to a related party | 1,325 | |
Business Cooperation | ||
RELATED PARTY TRANSACTIONS | ||
Amount due to a related party | $ 299 |
RELATED PARTY TRANSACTIONS (Equ
RELATED PARTY TRANSACTIONS (Equity transaction with a related party) (Details) | 1 Months Ended | 12 Months Ended | |||||
Aug. 19, 2022 shares | Jun. 27, 2022 shares | Apr. 05, 2021 USD ($) $ / shares shares | Feb. 23, 2021 USD ($) | Jan. 31, 2021 USD ($) | Dec. 31, 2022 shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Related Party Transaction [Line Items] | |||||||
Number of shares issued during period | shares | 1,556,667 | 1,120,000 | 125,900 | ||||
Value of shares issued | $ 85,572,963 | $ 23,019,000 | |||||
Shares issued per share | $ / shares | $ 0.269 | ||||||
Percent of subscription price settled | 50% | ||||||
Subscription price settled | $ 11,500,000 | ||||||
Fair value of bitcoins | $ 19,289,000 | ||||||
Exchange rate | 32,326.29 | ||||||
Number of bitcoins received | 356.04342 | ||||||
Number of Class A Ordinary Shares Equivalent to Preference Share | shares | 10,000 | ||||||
Good Luck Information | |||||||
Related Party Transaction [Line Items] | |||||||
Subscription price settled | $ 11,500,000 | ||||||
United States of America, Dollars | |||||||
Related Party Transaction [Line Items] | |||||||
Percent of subscription price settled | 50% | ||||||
Subscription price settled | $ 11,519,000 | ||||||
Mr. Man San Vincent Law | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares issued during period | shares | 65,000 | ||||||
Share Price | $ / shares | $ 1 | ||||||
Aggregate consideration from shares issued from exercise of stock options | $ 65,000,000 | ||||||
Voting power (in percent) | 17.66% | ||||||
Mr. Man San Vincent Law | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Voting power (in percent) | 17.66% | ||||||
Mr. Man San Vincent Law | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Voting power (in percent) | 54.90% | 44.17% | |||||
Definitive Share Subscription Agreement with Good Luck Information Technology Co., Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares issued during period | shares | 85,572,963 |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Related Party transactions) (Details) - Loto Interactive Information Technology (Shenzhen) Limited [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |||
Amount | $ 9,108 | $ 1,325 | $ 52 |
Expense paid amount | 17 | ||
Interest on loans [Member] | |||
RELATED PARTY TRANSACTIONS | |||
Amount | 20 | ||
Service management [Member] | |||
RELATED PARTY TRANSACTIONS | |||
Amount | $ 32 | ||
Data Center Operation | |||
RELATED PARTY TRANSACTIONS | |||
Amount | $ 9,108 | $ 1,325 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES. | |||
Indemnity cost | $ 0 | $ 0 | $ 0 |
LOSSES PER SHARE (Details)
LOSSES PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,499 | 622,337,974 | 430,011,263 |
Net loss from continuing operations - Basic | $ (0.18) | $ (0.09) | $ (0.05) |
Numerator: | |||
Net loss from continuing operations attributable to ordinary shareholders | $ (158,427) | $ (65,453) | $ (23,324) |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,499 | 622,337,974 | 430,011,263 |
Denominator used for losses per share | 871,036,499 | 622,337,974 | 430,011,263 |
Losses per share from continuing operations-diluted | $ (0.18) | $ (0.10) | $ (0.07) |
Class B Ordinary shares | |||
Numerator: | |||
Allocation of net loss from continuing operations attributable to BIT Mining Limited's ordinary shareholders used in calculating income per ordinary share-basic | $ 0 | $ (46) | |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 99 | 99 | 847,093 |
Net loss from continuing operations - Basic | $ 0 | $ (0.05) | |
Numerator: | |||
Allocation of net loss from continuing operations attributable to BIT Mining Limited's ordinary shareholders used in calculating loss per ordinary share- diluted | $ 0 | $ (46) | |
Reallocation of net loss from continuing operations attributable to BIT Mining Limited's ordinary shareholders as a result of conversion of Class B to Class A shares | 0 | ||
Net loss from continuing operations attributable to ordinary shareholders | $ 0 | $ (46) | |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 99 | 99 | 847,093 |
Conversion of Class B to Class A ordinary shares | 0 | ||
Denominator used for losses per share | 99 | 99 | 847,093 |
Losses per share from continuing operations-diluted | $ 0 | $ (0.05) | |
Losses from continuing operations per ADS: | |||
Denominator used for losses per ADS - basic | 0 | ||
Denominator used for losses per ADS -diluted | 0 | ||
Losses from continuing operations per ADS - basic | $ 0 | ||
Losses from continuing operations per ADS - diluted | $ 0 | ||
Class A Ordinary shares | |||
Numerator: | |||
Allocation of net loss from continuing operations attributable to BIT Mining Limited's ordinary shareholders used in calculating income per ordinary share-basic | $ (155,415) | $ (53,661) | $ (23,278) |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,400 | 622,337,875 | 429,164,170 |
Net loss from continuing operations - Basic | $ (0.18) | $ (0.09) | $ (0.05) |
Numerator: | |||
Allocation of net loss from continuing operations attributable to BIT Mining Limited's ordinary shareholders used in calculating loss per ordinary share- diluted | $ (155,415) | $ (53,661) | $ (23,278) |
Reallocation of net loss from continuing operations attributable to BIT Mining Limited's ordinary shareholders as a result of conversion of Class B to Class A shares | 0 | (46) | |
Net loss from continuing operations attributable to ordinary shareholders | $ (155,415) | $ (53,661) | $ (23,324) |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,400 | 622,337,875 | 429,164,170 |
Conversion of Class B to Class A ordinary shares | 99 | 99 | 847,093 |
Denominator used for losses per share | 871,036,499 | 622,337,974 | 430,011,263 |
Losses per share from continuing operations-diluted | $ (0.18) | $ (0.09) | $ (0.05) |
Losses from continuing operations per ADS: | |||
Denominator used for losses per ADS - basic | 8,710,364 | 6,223,379 | 4,291,642 |
Denominator used for losses per ADS -diluted | 8,710,365 | 6,223,380 | 4,300,113 |
Losses from continuing operations per ADS - basic | $ (17.84) | $ (8.62) | $ (5.42) |
Losses from continuing operations per ADS - diluted | $ (17.84) | $ (8.62) | $ (5.42) |
LOSSES PER SHARE - Schedule of
LOSSES PER SHARE - Schedule of earnings per share basic and diluted from discontinued operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 23, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,499 | 622,337,974 | 430,011,263 | |
Net loss from discontinued operations - Basic | $ (0.01) | $ (0.02) | ||
Numerator: | ||||
Net loss from discontinued operations attributable to ordinary shareholders | $ (8,921) | $ (8,779) | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,499 | 622,337,974 | 430,011,263 | |
Denominator used for losses per share | 871,036,499 | 622,337,974 | 430,011,263 | |
Losses from discontinued operations per ADS: | ||||
Warrant convertible into common stock ratio | 1% | |||
Class B Ordinary shares | ||||
Numerator: | ||||
Allocation of net loss from discontinued operations attributable to BIT Mining Limited's ordinary shareholders used in calculating loss per ordinary share-basic | $ (18) | |||
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 99 | 99 | 847,093 | |
Net loss from discontinued operations - Basic | $ (0.02) | |||
Numerator: | ||||
Allocation of net loss from discontinued operations attributable to BIT Mining Limited's ordinary shareholders used in calculating loss per ordinary share- diluted | $ (18) | |||
Net loss from discontinued operations attributable to ordinary shareholders | $ (18) | |||
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 99 | 99 | 847,093 | |
Conversion of Class B to Class A ordinary shares | 0 | |||
Denominator used for losses per share | 99 | 99 | 847,093 | |
Losses per share from discontinued operations-diluted | $ (0.02) | |||
Class A Ordinary shares | ||||
Numerator: | ||||
Allocation of net loss from discontinued operations attributable to BIT Mining Limited's ordinary shareholders used in calculating loss per ordinary share-basic | $ (8,742) | $ (9,070) | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,400 | 622,337,875 | 429,164,170 | |
Net loss from discontinued operations - Basic | $ (0.01) | $ (0.02) | ||
Numerator: | ||||
Allocation of net loss from discontinued operations attributable to BIT Mining Limited's ordinary shareholders used in calculating loss per ordinary share- diluted | $ (8,742) | $ (9,070) | ||
Reallocation of net loss from discontinued operations attributable to BIT Mining Limited's ordinary shareholders as a result of conversion of Class B to Class A shares | (18) | |||
Net loss from discontinued operations attributable to ordinary shareholders | $ (8,742) | $ (9,088) | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic losses per share | 871,036,400 | 622,337,875 | 429,164,170 | |
Conversion of Class B to Class A ordinary shares | 99 | 99 | 847,093 | |
Denominator used for losses per share | 871,036,499 | 622,337,974 | 430,011,263 | |
Losses per share from discontinued operations-diluted | $ (0.01) | $ (0.02) | ||
Losses from discontinued operations per ADS: | ||||
Denominator used for income per ADS - basic | 8,710,364 | 6,223,379 | 4,291,642 | |
Denominator used for loss per ADS - diluted | 8,710,365 | 6,223,380 | 4,300,113 | |
Losses from discontinued operations per ADS - basic | $ (1.40) | $ (2.11) | ||
Losses from discontinued operations per ADS -diluted | $ (1.40) | $ (2.11) |
EQUITY TRANSACTIONS - Narrative
EQUITY TRANSACTIONS - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 23, 2022 | Aug. 19, 2022 $ / shares shares | Jun. 27, 2022 $ / shares shares | May 31, 2022 shares | Apr. 05, 2021 USD ($) $ / shares shares | Dec. 31, 2020 $ / shares shares | Dec. 31, 2022 Vote $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Aug. 16, 2022 $ / shares shares | Jul. 27, 2021 shares | Jul. 12, 2021 $ / shares shares | |
Class of Stock [Line Items] | ||||||||||||
Authorized share capital, ordinary shares | 2,000,000,000 | 3,508,990 | ||||||||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||
Number of shares issued | 1,556,667 | 1,120,000 | 125,900 | |||||||||
Warrants exercise price | $ / shares | $ 6 | $ 0.10 | $ 68.10 | |||||||||
Warrants offered to purchase shares | 480,000 | 1,000,000 | ||||||||||
Options exercise price per share | $ / shares | $ 0.2 | |||||||||||
Issuance of ordinary shares from exercise of share options, shares | 22,029,560 | 125,900 | ||||||||||
Combined purchase price of each ADS and accompanying Warrants | $ / shares | $ 10 | |||||||||||
Combined purchase price of each Pre-Funded Warrant and accompanying Warrants | $ / shares | 9.90 | |||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 34,632,130 | 10,000,000 | ||||||||||
Number of Class A ordinary shares equivalent to preference share | 10,000 | |||||||||||
Warrant convertible into common stock ratio | 1% | |||||||||||
ADS | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants exercise price | $ / shares | $ 50 | |||||||||||
Warrants offered to purchase shares | 1,000,000 | 1,000,000 | ||||||||||
Series A Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants exercise price | $ / shares | $ 11 | |||||||||||
Warrants offered to purchase shares | 1,600,000 | |||||||||||
Series B Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants exercise price | $ / shares | $ 10 | |||||||||||
Warrants offered to purchase shares | 1,600,000 | |||||||||||
Series A Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants to purchase | 1,556,667 | |||||||||||
Warrants exercise price | $ / shares | 6.60 | $ 11 | $ 6.60 | |||||||||
Series B Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants to purchase | 1,556,667 | |||||||||||
Warrants exercise price | $ / shares | $ 6 | $ 10 | $ 6 | |||||||||
Mr. Man San Vincent Law | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares issued | 65,000 | |||||||||||
Aggregate consideration from shares issued from exercise of stock options | $ | $ 65,000,000 | |||||||||||
Share price | $ / shares | $ 1 | |||||||||||
Voting power (in percent) | 17.66% | |||||||||||
Minimum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Options exercise price per share | $ / shares | $ 0.2 | |||||||||||
Minimum | Mr. Man San Vincent Law | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Voting power (in percent) | 17.66% | |||||||||||
Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Options exercise price per share | $ / shares | $ 1 | |||||||||||
Maximum | Series A Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants to purchase | 1,556,667 | |||||||||||
Maximum | Series B Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants to purchase | 1,556,667 | |||||||||||
Maximum | Mr. Man San Vincent Law | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Voting power (in percent) | 54.90% | 44.17% | ||||||||||
Class A Ordinary shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Authorized share capital, ordinary shares | 1,599,935,000 | 1,599,935,000 | ||||||||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||
Private placement, ordinary shares issued | 315,666,650 | 185,572,963 | ||||||||||
Conversion of Class B to Class A ordinary shares, shares | 10,000,000 | |||||||||||
Ordinary shares issued | 430,127,692 | 1,063,813,210 | 710,078,070 | 430,127,692 | ||||||||
Ordinary shares, shares outstanding | 1,063,813,210 | 710,078,070 | ||||||||||
Number of shares issued | 430,127,692 | 3,508,990 | ||||||||||
Issuance of ordinary shares from exercise of share options, shares | 10,000 | 38,141,120 | 125,900 | |||||||||
Shares issued for asset acquisition | 16,038,930 | 16,038,930 | 56,236,295 | |||||||||
Aggregate consideration from shares issued from exercise of stock options | $ | $ 2,496 | $ 27,000 | ||||||||||
Number of votes per share | Vote | 1 | |||||||||||
Class A Ordinary shares | Business combinations | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares issued | 56,236,295 | |||||||||||
Class A Ordinary shares | Private Placement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares issued | 185,572,963 | |||||||||||
Class A Ordinary shares | Ordinary shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Authorized share capital, ordinary shares | 1,599,935,000 | |||||||||||
Class B Ordinary shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Authorized share capital, ordinary shares | 400,000,000 | 400,000,000 | ||||||||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||
Conversion of Class B to Class A ordinary shares, shares | (10,000,000) | |||||||||||
Ordinary shares issued | 99 | 99 | 99 | 99 | ||||||||
Ordinary shares, shares outstanding | 99 | 99 | 99 | 99 | ||||||||
Number of votes per share | Vote | 10 | |||||||||||
Class A preference shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Private placement, ordinary shares issued | 65,000 | |||||||||||
Preferred stock shares authorized | 65,000 | 65,000 | ||||||||||
Preference Shares, Shares Authorized | 65,000 | 65,000 |
PURCHASE OF NONCONTROLLING IN_3
PURCHASE OF NONCONTROLLING INTEREST (Details) $ in Thousands | 1 Months Ended | ||
Jun. 30, 2022 USD ($) MW | Oct. 31, 2021 MW | Sep. 30, 2021 MW | |
Viking Data Centers LLC | |||
Noncontrolling Interest [Line Items] | |||
Number of exclusive access to remaining Megawatts | 67.5 | ||
Book basis of the noncontrolling interest in Asgard | $ | $ 16,689 | ||
Ohio Mining Site | |||
Noncontrolling Interest [Line Items] | |||
Percentage of equity interest ownership in Ohio Mining Site | 55% | 55% | |
Maximum planned power capacity in Megawatts | 150 | 150 | |
Number of consideration Megawatts in Site Facilities | 67.5 | ||
Percentage Of Total Planned Power Capacity | 45% | ||
Viking Data Centers LLC | |||
Noncontrolling Interest [Line Items] | |||
Percentage of equity interest | 51% | ||
Number of consideration Megawatts in Site Facilities | 67.5 | ||
Number of access to Mega Watt of planned electrical power | 82.5 | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ | $ 17,785 | ||
Viking Data Centers LLC | Viking Data Centers LLC | |||
Noncontrolling Interest [Line Items] | |||
Number of access to Mega Watt of planned electrical power | 82.5 | ||
Number of exclusive access to remaining Megawatts | 67.5 |
PURCHASE OF NONCONTROLLING IN_4
PURCHASE OF NONCONTROLLING INTEREST - Assets transferred summary (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Apr. 15, 2021 |
Noncontrolling Interest [Line Items] | ||
Other non-current assets | $ 31 | |
Intangible assets, net | 58,559 | |
Assets transferred to Viking Data Centers | $ 131,979 | |
Viking Data Centers LLC | ||
Noncontrolling Interest [Line Items] | ||
Construction in progress | $ 5,863 | |
Other non-current assets | 4,902 | |
Intangible assets, net | 7,020 | |
Assets transferred to Viking Data Centers | $ 17,785 |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets and liabilities measured or disclosed at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities | ||
Total | $ 1,247 | |
Contingent consideration | ||
Liabilities | ||
Derivative liabilities | 1,247 | |
Fair Value Measurements Recurring | ||
Assets | ||
Total assets | $ 0 | |
Liabilities | ||
Liability measured at fair value | $ 0 | |
Significant unobservable inputs (Level 3) [Member] | Wealth management products | ||
Liabilities | ||
Total | 1,247 | |
Significant unobservable inputs (Level 3) [Member] | Wealth management products | Contingent consideration | ||
Liabilities | ||
Derivative liabilities | $ 1,247 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
SEGMENT REPORTING | |||
Number of reportable segments | segment | 3 | ||
Total segment and consolidated revenue | $ 650,227 | $ 1,328,876 | $ 2,167 |
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | (628,189) | (1,304,538) | (1,787) |
Total segment and consolidated cost of revenue-depreciation and amortization | (32,025) | (18,877) | (229) |
Total segment and consolidated cost | (660,214) | (1,323,415) | (2,016) |
Reconciling items: | |||
Other operating income | 590 | 300 | 534 |
Government grant | 29 | 21 | |
Impairment of cryptocurrency assets | (18,435) | (38,319) | 0 |
Impairment of intangible assets | (56,094) | (56) | 0 |
Impairment of goodwill | (26,569) | ||
Operating profit (loss) | (168,644) | (70,237) | (16,986) |
Other income, net | 9,031 | 594 | 42 |
Interest income | 150 | 56 | 242 |
Interest expense | 218 | 775 | |
(Loss) gain from equity method investments | 164 | (1,184) | (1,865) |
Gain on previously held equity interest | 5,500 | ||
Impairment of long-term investments | (2,250) | 0 | (4,787) |
Gain from disposal of subsidiaries | 3,340 | 234 | |
Income tax expense | (359) | (30) | |
Net loss | (158,427) | (65,453) | (23,324) |
Inter-segment | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | (51,328) | (38,632) | |
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | 51,328 | 38,632 | |
Total segment and consolidated cost of revenue-depreciation and amortization | 295 | ||
Reconciling items: | |||
Operating profit (loss) | (7,840) | ||
Reconciling items | |||
Reconciling items: | |||
Operating expenses | (27,084) | (29,569) | (17,419) |
Other operating income | 590 | 8,140 | 534 |
Government grant | 29 | 21 | |
Other operating expenses | (5,477) | (14,686) | (273) |
Net gain on disposal of cryptocurrency assets | 8,360 | 11,392 | |
Impairment of cryptocurrency assets | (18,435) | (38,319) | |
Changes in fair value of derivative instrument | 3,696 | ||
Impairment of property and equipment | (35,224) | (22,392) | |
Changes in fair value of contingent considerations | 1,247 | 13,936 | |
Impairment of intangible assets | (56,094) | (56) | |
Impairment of goodwill | (26,569) | ||
Mining pool | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 535,890 | ||
Mining pool | Operating segments | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 636,937 | 1,310,970 | |
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | (635,300) | (1,315,621) | |
Total segment and consolidated cost of revenue-depreciation and amortization | (9,090) | (4,148) | |
Mining pool | Inter-segment | |||
SEGMENT REPORTING | |||
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | (43,735) | (35,864) | |
Data center | Operating segments | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 17,580 | 14,593 | |
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | (12,673) | (10,982) | |
Total segment and consolidated cost of revenue-depreciation and amortization | (1,485) | (3,269) | |
Data center | Inter-segment | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 7,593 | 2,768 | |
Cryptocurrency mining | Operating segments | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 46,839 | 39,429 | |
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | (28,119) | (14,900) | |
Total segment and consolidated cost of revenue-depreciation and amortization | (21,448) | (11,649) | |
Cryptocurrency mining | Inter-segment | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 43,735 | 35,864 | |
Others | Operating segments | |||
SEGMENT REPORTING | |||
Total segment and consolidated revenue | 199 | 2,516 | 2,167 |
Total segment and consolidated cost of revenue-exclusive depreciation and amortization | (3,425) | (1,667) | (1,787) |
Total segment and consolidated cost of revenue-depreciation and amortization | $ (2) | $ (106) | $ (229) |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEGMENT REPORTING | |||
Revenues | $ 650,227 | $ 1,328,876 | $ 2,167 |
Cost of Revenue | 628,189 | 1,304,538 | $ 1,787 |
Cost of data center services | 12,673 | 10,982 | |
Cost of cryptocurrency mining | 28,119 | 14,900 | |
Inter-segment | |||
SEGMENT REPORTING | |||
Revenues | (51,328) | (38,632) | |
Cost of Revenue | (51,328) | (38,632) | |
Mining pool | |||
SEGMENT REPORTING | |||
Revenues | 535,890 | ||
Mining pool | Inter-segment | |||
SEGMENT REPORTING | |||
Cost of Revenue | 43,735 | 35,864 | |
Cost of cryptocurrency mining | 7,593 | 7,593 | |
Sub Mining Pool | |||
SEGMENT REPORTING | |||
Revenues | 101,047 | ||
Data center | Inter-segment | |||
SEGMENT REPORTING | |||
Revenues | 7,593 | 2,768 | |
Cost of data center services | 2,768 | 2,768 | |
Cryptocurrency mining | Inter-segment | |||
SEGMENT REPORTING | |||
Revenues | $ 43,735 | $ 35,864 |
SEGMENT REPORTING - Geographica
SEGMENT REPORTING - Geographical locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEGMENT REPORTING | |||
Revenues | $ 650,227 | $ 1,328,876 | $ 2,167 |
Long-lived assets | 31,355 | 76,365 | |
Hong Kong | |||
SEGMENT REPORTING | |||
Revenues | 47,038 | 40,035 | |
Long-lived assets | 1,365 | 31,745 | |
USA | |||
SEGMENT REPORTING | |||
Revenues | 17,580 | 2,829 | |
Long-lived assets | 29,317 | 35,873 | |
Kazakhstan | |||
SEGMENT REPORTING | |||
Long-lived assets | 373 | 2,310 | |
Europe | |||
SEGMENT REPORTING | |||
Revenues | 2,214 | $ 2,167 | |
Long-lived assets | 2 | ||
Mainland China | |||
SEGMENT REPORTING | |||
Revenues | 11,460 | ||
Long-lived assets | 300 | 6,435 | |
British Virgin Islands | |||
SEGMENT REPORTING | |||
Revenues | 492,155 | ||
Cayman Islands | |||
SEGMENT REPORTING | |||
Revenues | 2,898 | ||
Blockchain | |||
SEGMENT REPORTING | |||
Revenues | 141,884 | 1,310,970 | |
Inter-segment | |||
SEGMENT REPORTING | |||
Revenues | $ (51,328) | $ (38,632) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 12 Months Ended | |||||
Mar. 15, 2023 HKD ($) $ / shares shares | Mar. 15, 2023 USD ($) shares | Mar. 10, 2023 shares | Jan. 03, 2023 shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
SUBSEQUENT EVENTS | ||||||
Vested | 34,632,130 | 10,000,000 | ||||
Subsequent Event | ||||||
SUBSEQUENT EVENTS | ||||||
Vested | 47,419,000 | |||||
Subsequent Event | ADS | ||||||
SUBSEQUENT EVENTS | ||||||
Granted | 474,190 | |||||
Subsequent Event | Sale and purchase agreement | Crypto Flow Technology Limited | ||||||
SUBSEQUENT EVENTS | ||||||
Percentage of equity interest acquired | 8.79% | |||||
Number of shares issued for acquisition | 48,195,605 | 48,195,605 | ||||
Acquisition share price | $ / shares | $ 0.38 | |||||
Total consideration | $ 18,314 | $ 2,333 | ||||
Subsequent Event | Class A Ordinary shares | ||||||
SUBSEQUENT EVENTS | ||||||
Granted | 47,419,000 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||
Cash and cash equivalents | $ 5,448 | $ 17,670 | ||
Short-term investment | 2,360 | |||
Cryptocurrency assets | 14,972 | 53,190 | ||
Total current assets | 35,336 | 93,256 | ||
Non-current assets: | ||||
Intangible assets, net | 3,314 | 71,931 | ||
Total non-current assets | 51,468 | 200,973 | ||
TOTAL ASSETS | 86,804 | 294,229 | ||
Current liabilities: | ||||
Accrued payroll and welfare payable | 819 | 489 | ||
Accrued expenses and other liabilities | 5,155 | 18,738 | ||
Total current liabilities | 30,839 | 84,397 | ||
TOTAL LIABILITIES | 33,676 | 88,966 | ||
Shareholders' equity: | ||||
Additional paid-in capital | 620,807 | 590,567 | ||
Treasury shares | 21,604 | 21,604 | ||
Accumulated other comprehensive loss | (3,960) | (2,355) | ||
Total shareholder's equity | 53,128 | 179,890 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 86,804 | 294,229 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 137 | 126 | $ 510 | $ 877 |
Short-term investment | 2,360 | |||
Cryptocurrency assets | 2,811 | 16,807 | ||
Other current assets | 32,285 | 44,362 | ||
Amounts due from intergroup companies | 169,459 | 95,697 | ||
Total current assets | 207,052 | 156,992 | ||
Non-current assets: | ||||
Investment in subsidiaries and VIEs | (129,151) | 37,355 | ||
Intangible assets, net | 125 | 140 | ||
Total non-current assets | (129,026) | 37,495 | ||
TOTAL ASSETS | 78,026 | 194,487 | ||
Current liabilities: | ||||
Accrued payroll and welfare payable | 159 | 73 | ||
Accrued expenses and other liabilities | 619 | 3,531 | ||
Amounts due to intergroup companies | 24,120 | 10,993 | ||
Total current liabilities | 24,898 | 14,597 | ||
TOTAL LIABILITIES | 24,898 | 14,597 | ||
Shareholders' equity: | ||||
Additional paid-in capital | 620,807 | 590,567 | ||
Treasury shares | (21,604) | (21,604) | ||
Accumulated other comprehensive loss | (3,960) | (2,355) | ||
Accumulated deficit and statutory reserve | (542,169) | (386,754) | ||
Total shareholder's equity | 53,128 | 179,890 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 78,026 | 194,487 | ||
Class A Ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 54 | 36 | ||
Class A Ordinary shares | Parent Company | ||||
Shareholders' equity: | ||||
Ordinary shares, value | $ 54 | $ 36 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed balance sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Ordinary shares, par value | $ 0.00005 | ||
Ordinary shares, shares authorized | 2,000,000,000 | 3,508,990 | |
Class A Ordinary shares | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 1,599,935,000 | 1,599,935,000 | |
Ordinary shares, shares issued | 1,063,813,210 | 710,078,070 | 430,127,692 |
Ordinary shares, shares outstanding | 1,063,813,210 | 710,078,070 | |
Class A Ordinary shares | Parent Company | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 1,599,935,000 | 1,599,935,000 | |
Ordinary shares, shares issued | 1,063,813,210 | 710,078,070 | |
Ordinary shares, shares outstanding | 1,063,813,210 | 710,078,070 | |
Class B Ordinary shares | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 400,000,000 | 400,000,000 | |
Ordinary shares, shares issued | 99 | 99 | 99 |
Ordinary shares, shares outstanding | 99 | 99 | 99 |
Class B Ordinary shares | Parent Company | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Ordinary shares, par value | $ 0.00005 | ||
Ordinary shares, shares authorized | 400,000,000 | 400,000,000 | |
Ordinary shares, shares issued | 99 | 99 | |
Class A preference shares | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Preference Shares, Par Value | $ 0.00005 | $ 0.00005 | |
Preference Shares, Shares Authorized | 65,000 | 65,000 | |
Preference Shares, Shares Issued | 65,000 | 65,000 | |
Preference Shares, Shares Outstanding | 65,000 | 65,000 | |
Class A preference shares | Parent Company | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Preference Shares, Par Value | $ 0.00005 | $ 0.00005 | |
Preference Shares, Shares Authorized | 65,000 | 65,000 | |
Preference Shares, Shares Issued | 65,000 | 65,000 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed statements of comprehensive loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Revenues | $ 650,227 | $ 1,328,876 | $ 2,167 |
Operating costs and expenses: | |||
Cost of revenue | 660,214 | 1,323,415 | 2,016 |
Sales and marketing expenses | 633 | 951 | 1,148 |
General and administrative expenses | 22,786 | 25,463 | 14,330 |
Net loss on disposal of cryptocurrency assets | 8,360 | 11,392 | |
Impairment of cryptocurrencies | 18,435 | 38,319 | 0 |
Operating profit (loss) | (168,644) | (70,237) | (16,986) |
Interest income | 150 | 56 | 242 |
Interest expense | 218 | 775 | |
Loss before income tax | (158,427) | (65,812) | (23,354) |
Net loss | (155,415) | (62,403) | (32,412) |
Reclassification into loss from equity method investments | (131) | ||
Share of other comprehensive (loss) income from an equity method investee | 631 | (177) | |
Comprehensive loss | (157,020) | (60,160) | (30,272) |
Parent Company | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Revenues | 40,274 | 39,414 | |
Operating costs and expenses: | |||
Cost of revenue | (15,595) | (6,279) | |
Sales and marketing expenses | (72) | (244) | (4) |
General and administrative expenses | (3,307) | (8,047) | (8,347) |
Total operating costs and expenses | (18,974) | (14,570) | (8,351) |
Net loss on disposal of cryptocurrency assets | (9,349) | (6,582) | |
Impairment of cryptocurrencies | (7,360) | (4,436) | |
Operating profit (loss) | 4,591 | 13,826 | (8,351) |
Interest income | 9 | 34 | |
Interest expense | (60) | (708) | |
Equity in loss of subsidiaries and VIEs | (159,946) | (75,530) | (24,095) |
Loss before income tax | (155,415) | (62,403) | (32,412) |
Net loss | (155,415) | (62,403) | (32,412) |
Foreign currency translation gain (loss) | (1,605) | 1,481 | 2,317 |
Reclassification into loss from equity method investments | 131 | ||
Share of other comprehensive (loss) income from an equity method investee | 631 | (177) | |
Comprehensive loss | $ (157,020) | $ (60,160) | $ (30,272) |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed statements of cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Net decrease (increase) in cash and cash equivalents | $ (12,230) | $ (30,090) | $ (4,649) |
Cash and cash equivalents at beginning of the year | 17,670 | ||
Cash and cash equivalents at end of the year | 5,448 | 17,670 | |
Parent Company | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Net cash used in operating activities | (12,259) | (135,484) | (2,606) |
Net cash (used in) provided by investing activities | 9,925 | 33,227 | (1,842) |
Net cash provided by financing activities | 2,345 | 101,873 | 4,081 |
Net decrease (increase) in cash and cash equivalents | 11 | (384) | (367) |
Cash and cash equivalents at beginning of the year | 126 | 510 | 877 |
Cash and cash equivalents at end of the year | $ 137 | $ 126 | $ 510 |