Bitdeer Reports Revenue Growth Despite Market Volatility

Bitdeer Technologies Group (NASDAQ: BTDR) has reported an impressive 6% increase in its Q2 2024 revenue, reaching nearly $100 million. The company’s growth is primarily attributed to its self-mining division, despite a volatile market environment marked by the Bitcoin halving event and fluctuating Bitcoin prices.

Bitdeer’s self-mining revenue almost doubled to $41.6 million from $21.6 million in the previous year, driven by a significant increase in self-mining hashrate at its Bhutan datacenter, which rose to 7.3 EH/s from 3.8 EH/s. The company mined 628 Bitcoins during the quarter, typically selling them shortly after mining.

However, Bitdeer's cloud hash rate revenue experienced a 33% decline due to broader market conditions and reduced electricity subscriptions amid lower margins post-Bitcoin halving. Despite these challenges, any hash rate from cloud mining is redirected to self-mining when contracts expire, mitigating some of the revenue impact.

Bitdeer’s gross profit surged by 50% to $24.4 million from $16.2 million a year ago, and its adjusted EBITDA rose by 25% to $24.9 million. Nonetheless, the company reported a net loss of $17.7 million, an improvement from a $40.4 million loss in the previous year. The recent loss was influenced by a non-cash expense related to warrants on Tether, which could be converted to equity to offset liabilities.

Bitdeer ended the quarter with nearly $204 million in cash and cash equivalents, including close to $25 million in cryptocurrency. The company invested $17.5 million into its products and mining machines during the quarter, aiming to balance these investments with continued revenue growth.

Chief Business Officer Matt Kong emphasized the company’s resilience, stating, “We achieved these results despite significant growth in the global network hashrate and the April 2024 halving. This demonstrates the strength of our differentiated strategy, underpinned by Bitdeer’s commitment to technology and innovation.”

Looking ahead, Bitdeer is developing several datacenter projects in the United States, Norway, and Bhutan, expecting these to support future growth. The company recently signed a 30-year lease agreement for 570 MW of power capacity in Ohio, bolstering its infrastructure.

In Q2, Bitdeer advanced its SEALMINER ASIC roadmap and acquired Desiweminer, a crypto ASIC design company. The company has started mass production of its SEALMINER A1 chips, aiming to add 3.4 EH/s to its datacenters by the end of 2024. Bitdeer also plans to ramp up production of its second-generation SEAL02 chips by year-end, anticipating immediate cash flow from customer pre-orders.

Additionally, Bitdeer launched a high-performance computing (HPC) and AI business earlier this year, deploying Nvidia (NASDAQ: NVDA) systems in Singapore, achieving a 100% utilization rate at the start of Q3.

Despite uncertainties in Bitcoin prices, Bitdeer remains optimistic about its robust roadmap, which includes advancements in self-mining, ASIC miner technology, cloud capabilities, and AI-powered data centers. Wall Street analysts maintain an average “buy” rating on BTDR shares, suggesting potential for future gains.