Fiscal Year 2020 Financial Results
Total mining revenue in 2020 was $12 million, as compared to $6.7 million in 2019, an increase of 78% year-over-year.
Gross profit, which is computed as mining revenues in excess of cost of revenues (excluding depreciation and amortization), was $5.7 million (48% of total mining revenues), as compared to $0.6 million (10% of total mining revenue) in 2019. The increase in revenue and gross profit were due to the increase in the Company’s hash rate in addition to an increase in the price of bitcoin during 2020, offset by the Bitcoin halving event in 2020.
Selling, general, and administrative (SG&A) expenses in 2020 increased to $10.2 million from $9.1 million in 2019, an increase of 12% year-over-year. The increase in SG&A was primarily due to an increase in consulting fees, legal fees, audit and related professional fees.
Net loss for 2020 was $12.7 million, or $(0.30) per share, compared to a net loss of $20.03 million, or $(1.02) per share in 2019. The net loss included $12.0 million in non-cash items consisting primarily of the impairment of our investment in Coinsquare of $9.4 million, depreciation and amortization (D&A) of $4.5 million and stock-based compensation of $3.4 million, offset by the gain on sale of cryptocurrency discussed below and a net of other items of $0.1 million. The net loss for the year ended December 31, 2020 also included a $5.2 million gain on the sale/exchange of cryptocurrencies.
At December 31, 2020, the Company had $235 million in cash and cryptocurrencies, as compared to $11.3 million at December 31, 2019.
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