Bitdeer Technologies Group (NASDAQ: BTDR)
(“
Bitdeer” or the “
Company”), a
world-leading technology company for blockchain and
high-performance computing, today announced its unaudited financial
results for the first quarter ended March 31, 2024.
Q1 2024 Financial
Highlights
- Total revenue was
US$119.5 million, compared to US$72.6 million in Q1 2023.
- Net income was
US$0.6 million, compared to a net loss of US$9.5 million in Q1
2023.
- Adjusted profit
was US$8.4 million, compared to US$2.8 million in Q1 2023.
- Adjusted
EBITDA was US$26.0 million, compared to US$18.5
million in Q1 2023.
- Cash and cash
equivalents were US$118.5 million as of March 31,
2024.
Linghui Kong, Chief Business Officer of Bitdeer,
commented, “We sustained our growth momentum in the first quarter
of 2024, as we increased our total revenue by 64.6% on an annual
basis and generated a net income of US$0.6 million, despite
incurring a US$14.1 million one-off incremental development expense
related to our SEAL01 chip. During the first quarter we mined 911
Bitcoins, representing an increase of 65.0% from a year ago. Our
strategic plan to expand our hash rate by approximately 3.4EH/s by
the end of this year remains on course, and we are making steady
progress with the manufacturing of our SEALMINER A1 rigs. We expect
that trial production will start in May 2024. By deploying the
mining machines produced during trial production to our own
datacenters for self-mining, we can field test them to ensure their
stability and optimal product quality for our customers. At the
same time, our teams have continued development of our next
generation of mining rigs. Designs for the second-generation
machines are advancing, with tape out potentially commencing in the
second quarter of this year and wafer ordering for mass production
potentially beginning in the third quarter of this year. We
anticipate that these next generation miners will deliver even
greater efficiency than their predecessors.”
“In the meantime, we continue to develop our AI
cloud service. The significant interest we are observing in the
space reaffirms our confidence in its potential for growth. In
terms of our infrastructure, construction of our Jigmeling
datacenter in Bhutan started during the first quarter of 2024.
Notably, we remain on track to complete expansion of our mining
facilities in Norway, the United States, and Bhutan in 2025. In
addition, we are actively working to further reduce our energy
costs. We have already secured an electricity price of
approximately $0.0425 per kWh for the remainder of the year from
April in Bhutan, and we are collaborating with energy experts and
strategists to lower costs in our Norway, Texas, and Ohio
datacenters. Looking ahead, we will continue to execute on our
strategy to deliver diversified, long-term business growth.”
The majority of the Company’s revenue is
derived from its three distinct business lines:
-
Self-mining refers to cryptocurrency mining for
the Company’s own account, which allows it to directly capture the
high appreciation potential of cryptocurrency.
-
Hash Rate Sharing currently primarily includes
Cloud Hash Rate, in which the Company offers hash rate subscription
plans and shares mining income with customers under certain
arrangements.
-
Hosting encompasses a one-stop mining machine
hosting solution including deployment, maintenance, and management
services for efficient cryptocurrency mining.
Financial Highlights
-
Total revenue was US$119.5 million in the first
quarter of 2024, compared to US$72.6 million in the corresponding
period of 2023, primarily due to the increase in revenue generated
from the Company’s self-mining business as a result of the
increased self-mining hash rate and increased Bitcoin production,
coupled with a higher average Bitcoin price during the period. The
Company’s increased hosting capacity also led to an increase in
revenue generated from hosting services.
-
Net income was US$0.6 million in the first quarter
of 2024, compared to a net loss of US$9.5 million in the
corresponding period of 2023. Net income in the first quarter of
2024 was primarily driven by gross profit of US$34.1 million
through the Company’s principal business and gain on disposal of
cryptocurrencies of US$3.1 million, partially offset by operating
expenses of US$37.8 million, which included a US$14.1 million
one-off incremental development expense related to the SEAL01 chip.
Net loss in the first quarter of 2023 was primarily driven by
share-based payment expenses of US$12.3 million.
-
Adjusted profit was US$8.4 million in the first
quarter of 2024, compared to US$2.8 million in the corresponding
period of 2023. Adjusted profit/(loss) is a non-IFRS financial
measure and is used by the Company as a supplemental measure to
review and assess the Company’s operating performance and is
defined as profit/(loss) adjusted to exclude share-based payment
expenses under IFRS 2.
-
Adjusted EBITDA was US$26.0
million in the first quarter of 2024, compared to US$18.5 million
in the corresponding period of 2023. Adjusted EBITDA is a non-IFRS
financial measure and is used by the Company as a supplemental
measure to review and assess the Company’s operating performance
and is defined as earnings before interest, taxes, depreciation and
amortization, further adjusted to exclude share-based payment
expenses under IFRS 2.
-
Cash and cash equivalents were US$118.5 million as
of March 31, 2024.
-
Total Borrowings were US$22.7 million as of March
31, 2024.
Operational Highlights
Metrics |
Three Months Ended March 31, |
|
2024 |
2023 |
Total hash rate under management (EH/s) |
22.5 |
18.3 |
- Proprietary hash rate |
8.4 |
5.7 |
• Self-mining |
6.7 |
3.9 |
• Cloud Hash Rate |
1.7 |
1.8 |
- Hosting |
14.1 |
12.6 |
Mining machines under management |
226,000 |
196,000 |
- Self-owned |
86,000 |
67,000 |
- Hosted |
140,000 |
129,000 |
Aggregate electrical capacity
(MW) |
895 |
795 |
Bitcoin mined (self-mining only) |
911 |
552 |
-
Total hash rate under management, which consists
of proprietary hash rate and hosting hash rate, was 22.5 EH/s as of
March 31, 2024.
- Proprietary hash rate was 8.4 EH/s
as of March 31, 2024, with 6.7 EH/s allocated to the Company’s
self-mining business and 1.7 EH/s to its Cloud Hash Rate
business.
- Hosting hash rate was 14.1 EH/s as
of March 31, 2024.
-
Self-mining business mined 911 Bitcoins in the
first quarter of 2024, representing a 65.0% increase as compared to
552 Bitcoins in the first quarter of 2023, due to the increase in
hash rate of the Company’s self-mining business. During the period,
the Company promptly converted the majority of cryptocurrencies it
obtained through business operations into fiat currency.
-
Mining machines under management was approximately
226,000 ASIC mining machines as of March 31, 2024.
- Self-owned mining machines for the
Company’s self-mining business and Cloud Hash Rate business
increased to approximately 86,000, primarily due to the launch of
the mining datacenter in Bhutan.
- Hosted mining machines increased to
approximately 140,000, primarily due to increased hosting hash rate
contributed by new customers in the Company’s Texas and Norway
datacenters.
-
Aggregate electrical capacity was 895MW across six
mining datacenters as of March 31, 2024, representing a 12.6%
increase from 795MW as of March 31, 2023. The Company also has
another 175MW in Norway, 221MW in Ohio, United States, and 500MW in
Bhutan under construction as of March 31, 2024. The expansions to
the Company’s mining facilities in Norway, the United States, and
Bhutan are expected to be completed in 2025.
-
Total power usage was approximately 1,361,000 MWH
across the Company’s six mining datacenters in the first quarter of
2024.
-
Average cost of electricity was approximately
US$43/MWH in the first quarter of 2024.
-
Average miner efficiency was 31.7 J/TH as of March
31, 2024.
Financial Results
|
Three Months EndedMarch 31,
2024 |
|
(US$’000) |
Business lines |
Self-mining |
Cloud HashRate |
GeneralHosting |
MembershipHosting |
Revenue |
48,448 |
|
18,130 |
|
28,969 |
|
19,486 |
|
Cost of revenue |
|
|
|
|
Including: |
|
|
|
|
- Electricity cost in operating mining machines |
(26,244 |
) |
(5,340 |
) |
(14,001 |
) |
(13,078 |
) |
- Depreciation and share-based payment expenses |
(8,666 |
) |
(3,237 |
) |
(3,013 |
) |
(2,027 |
) |
- Other cash costs |
(2,715 |
) |
(1,016 |
) |
(1,623 |
) |
(1,135 |
) |
Total cost of revenue |
(37,625 |
) |
(9,593 |
) |
(18,637 |
) |
(16,240 |
) |
Gross profit |
10,823 |
|
8,537 |
|
10,332 |
|
3,246 |
|
|
Three Months EndedMarch 31,
2023 |
|
(US$’000) |
Business lines |
Self-mining |
Cloud Hash Rate |
General Hosting |
Membership Hosting |
Revenue |
13,150 |
|
18,016 |
|
22,144 |
|
16,487 |
|
Cost of revenue |
|
|
|
|
Including: |
|
|
|
|
- Electricity cost in operating mining machines |
(7,266 |
) |
(5,085 |
) |
(10,239 |
) |
(11,963 |
) |
- Depreciation and share-based payment expenses |
(4,285 |
) |
(6,003 |
) |
(3,846 |
) |
(2,863 |
) |
- Other cash costs |
(1,111 |
) |
(1,437 |
) |
(1,779 |
) |
(1,407 |
) |
Total cost of revenue |
(12,662 |
) |
(12,525 |
) |
(15,864 |
) |
(16,233 |
) |
Gross profit |
488 |
|
5,491 |
|
6,280 |
|
254 |
|
Revenue
Total revenue was US$119.5 million, compared to
US$72.6 million in the first quarter of 2023.
-
Self-mining revenue was US$48.4 million, compared to US$13.2
million in the first quarter of 2023, primarily due to the increase
in self-mining hash rate from the Company’s 100MW Gedu mining
datacenter in Bhutan that entered into operations in the second
half of 2023 and the higher average Bitcoin price in the period
compared to the first quarter of 2023.
- Cloud
Hash Rate revenue was US$18.1 million, which remained steady
compared to US$18.0 million in the first quarter of 2023.
-
General Hosting revenue was US$29.0 million, compared to US$22.1
million in the first quarter of 2023, primarily due to a slight
increase in the capacity of general hosting from new hosting
customers and increased variable consideration in Bitcoin based on
our customer’s mining rewards, with a higher average price compared
to the first quarter of 2023.
-
Membership Hosting revenue was US$19.5 million, compared to US$16.5
million in the first quarter of 2023, primarily due to a slight
increase in the capacity of membership hosting.
Cost of Revenue
Cost of revenue was US$85.4 million, compared to US$59.1 million
in the first quarter of 2023, primarily due to increases in
electricity costs that were mainly attributable to the increase of
mining datacenter capacity through the delivery of the Gedu
datacenter in the third quarter of 2023.
Gross Profit
Gross profit was US$34.1 million, representing a 28.6% gross
margin, compared to US$13.5 million, or a 18.6% gross margin, in
the first quarter of 2023.
Operating Expenses
The sum of below operating expenses in the first
quarter of 2024 was US$37.8 million, as compared to US$24.7 million
in the first quarter of 2023.
- Selling
expenses were US$1.7 million, compared to US$2.4 million in the
first quarter of 2023, primarily due to decreases in staff costs
and share-based compensation to sales personnel.
- General
and administrative expenses were US$15.0 million, compared to
US$16.0 million in the first quarter of 2023, primarily due to
decreases in share-based compensation, partially offset by an
increase in staff costs to general and administrative
personnel.
-
Research and development expenses were US$21.2 million, compared to
US$6.3 million in the first quarter of 2023, primarily due to a
US$14.1 million one-off incremental development expense related to
the SEAL01 chip.
Net Income
Net income was US$0.6 million, compared to a net loss of US$9.5
million in the first quarter of 2023.
Adjusted Profit (Non-IFRS)
Adjusted profit was US$8.4 million, compared to US$2.8 million
in the first quarter of 2023.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was US$26.0 million, compared to
US$18.5 million in the first quarter of 2023, primarily due to the
increase in revenue, gain on disposal of cryptocurrencies, and
increase in fair value of financial assets at fair value through
profit or loss, partially offset by increases in electricity costs
and the US$14.1 million one-off incremental development expenses
related to the ‘SEAL01 chip.
Liquidity
As of March 31, 2024, the Company held US$118.5
million in cash and cash equivalents, as compared to US$144.7
million as of December 31, 2023. The cash inflows are mainly
generated from the Company’s operation and proceeds from issuance
of ordinary shares, and used for active construction of mining
datacenters in Norway and Bhutan and prepayment to purchase wafers
for the upcoming production of our SEALMINER A1 rigs in the first
quarter of 2024.
Recent Developments
The laboratory testing and preparations for
batch production of SEALMINER have been completed. The Company will
conduct small batch trial production in May and June 2024.
About Bitdeer Technologies
Group
Bitdeer is a world-leading technology company
for blockchain and high-performance computing. Bitdeer is
committed to providing comprehensive computing solutions for its
customers. The Company handles complex processes involved in
computing such as equipment procurement, transport logistics,
datacenter design and construction, equipment management and daily
operations. The Company also offers advanced cloud
capabilities to customers with high demand for artificial
intelligence. Headquartered in Singapore, Bitdeer has deployed
datacenters in the United States, Norway, and Bhutan. To
learn more, please visit https://www.bitdeer.com/ or follow
Bitdeer on X, formerly known as Twitter, @ BitdeerOfficial,
Facebook @Bitdeer and LinkedIn @ Bitdeer Group.
Investors and others should note that Bitdeer
may announce material information using its website and/or on its
accounts on social media platforms, including X, formerly known as
Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages
investors and others to review the information it posts on the
social media and other communication channels listed on its
website.
Forward-Looking Statements
Statements in this press release about future
expectations, plans, and prospects, as well as any other statements
regarding matters that are not historical facts, may constitute
“forward-looking statements” within the meaning of The Private
Securities Litigation Reform Act of 1995. The words “anticipate,”
“look forward to,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “potential,” “predict,”
“project,” “should,” “target,” “will,” “would” and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various
important factors, including factors discussed in the section
entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as
well as discussions of potential risks, uncertainties, and other
important factors in Bitdeer’s subsequent filings with the U.S.
Securities and Exchange Commission. Any forward-looking statements
contained in this press release speak only as of the date hereof.
Bitdeer specifically disclaims any obligation to update any
forward-looking statement, whether due to new information, future
events, or otherwise. Readers should not rely upon the information
on this page as current or accurate after its publication date.
Use of Non-IFRS Financial
Measures
In evaluating the Company’s business, the Company considers and
uses non-IFRS measures, adjusted EBITDA and adjusted profit/(loss),
as supplemental measures to review and assess its operating
performance. The Company defines adjusted EBITDA as earnings before
interest, taxes, depreciation and amortization, further adjusted to
exclude the listing fee and share-based payment expenses under IFRS
2, and defines adjusted profit/(loss) as profit/(loss) adjusted to
exclude the listing fee and share-based payment expenses under IFRS
2. The Company presents these non-IFRS financial measures because
they are used by its management to evaluate its operating
performance and formulate business plans. The Company also believes
that the use of these non-IFRS measures facilitate investors’
assessment of its operating performance. These measures are not
necessarily comparable to similarly titled measures used by other
companies. As a result, investors should not consider these
measures in isolation from, or as a substitute analysis for, the
Company’s loss for the periods, as determined in accordance with
IFRS.
The Company compensates for these limitations by reconciling
these non-IFRS financial measures to the nearest IFRS performance
measure, all of which should be considered when evaluating its
performance. The Company encourages investors to review its
financial information in its entirety and not rely on a single
financial measure.
The following table presents a reconciliation of profit/(loss)
for the relevant period to adjusted EBITDA and adjusted profit, for
the three months ended March 31, 2024 and 2023.
|
|
Three months ended March 31, |
|
|
2024 |
|
2023 |
|
|
US$ |
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
Profit/(loss) for the
periods |
|
606 |
|
|
(9,467 |
) |
Add: |
|
|
|
|
Depreciation and
amortization |
|
18,187 |
|
|
17,289 |
|
Income tax (benefit) /
expenses |
|
46 |
|
|
(972 |
) |
Interest income, net |
|
(608 |
) |
|
(644 |
) |
Share-based payment
expenses |
|
7,803 |
|
|
12,293 |
|
Total of Adjusted
EBITDA |
|
26,034 |
|
|
18,499 |
|
|
|
|
|
|
Adjusted
Profit |
|
|
|
|
Profit/(loss) for the
periods |
|
606 |
|
|
(9,467 |
) |
Add: |
|
|
|
|
Share-based payment
expenses |
|
7,803 |
|
|
12,293 |
|
Total of Adjusted
Profit |
|
8,409 |
|
|
2,826 |
|
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Financial
Position
|
|
As of March 31, |
|
As of December 31, |
|
|
2024 |
|
2023 |
|
|
US$ |
|
US$ |
|
|
(in thousands) |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
118,461 |
|
|
144,729 |
|
Cryptocurrencies |
|
26,071 |
|
|
15,371 |
|
Trade receivables |
|
23,710 |
|
|
17,277 |
|
Amounts due from a related
party |
|
4,968 |
|
|
187 |
|
Prepayments and other
assets |
|
136,916 |
|
|
97,433 |
|
Financial asset at fair value
through profit or loss |
|
41,115 |
|
|
37,775 |
|
Restricted cash |
|
9,538 |
|
|
9,538 |
|
Mining machines |
|
58,527 |
|
|
63,477 |
|
Right-of-use assets |
|
63,978 |
|
|
58,626 |
|
Property, plant and
equipment |
|
169,227 |
|
|
154,860 |
|
Investment properties |
|
32,694 |
|
|
34,346 |
|
Intangible assets |
|
4,736 |
|
|
4,777 |
|
Deferred tax assets |
|
1,029 |
|
|
991 |
|
TOTAL
ASSETS |
|
690,970 |
|
|
639,387 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Trade payables |
|
25,277 |
|
|
32,484 |
|
Other payables and
accruals |
|
40,719 |
|
|
32,151 |
|
Amounts due to a related
party |
|
30 |
|
|
33 |
|
Income tax payables |
|
4,506 |
|
|
3,367 |
|
Deferred revenue |
|
130,756 |
|
|
144,337 |
|
Borrowings |
|
22,676 |
|
|
22,618 |
|
Lease liabilities |
|
75,112 |
|
|
70,211 |
|
Deferred tax liabilities |
|
541 |
|
|
1,620 |
|
TOTAL
LIABILITIES |
|
299,617 |
|
|
306,821 |
|
|
|
|
|
|
NET
ASSETS |
|
391,353 |
|
|
332,566 |
|
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital |
|
* |
|
|
* |
|
Treasury shares |
|
- |
|
|
(2,604 |
) |
Accumulated deficit |
|
(49,247 |
) |
|
(49,853 |
) |
Reserves |
|
440,600 |
|
|
385,023 |
|
TOTAL
EQUITY |
|
391,353 |
|
|
332,566 |
|
|
|
|
|
|
|
|
_________________
* Amount less than US$1,000.
Unaudited Consolidated Statements of Operations and
Comprehensive Income/(Loss)
|
|
Three Months Ended March 31, |
|
|
2024 |
|
2023 |
|
|
US$ |
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
Revenue [1] |
|
119,506 |
|
|
72,587 |
|
Cost of revenue |
|
(85,375 |
) |
|
(59,095 |
) |
Gross
profit |
|
34,131 |
|
|
13,492 |
|
Selling expenses |
|
(1,690 |
) |
|
(2,436 |
) |
General and administrative
expenses |
|
(14,969 |
) |
|
(16,004 |
) |
Research and development
expenses |
|
(21,164 |
) |
|
(6,294 |
) |
Other operating income |
|
1,746 |
|
|
895 |
|
Other net gain |
|
2,447 |
|
|
140 |
|
Profit/(loss) from
operations |
|
501 |
|
|
(10,207 |
) |
Finance income /
(expenses) |
|
151 |
|
|
(232 |
) |
Profit/(loss) before
taxation |
|
652 |
|
|
(10,439 |
) |
Income tax benefit /
(expenses) |
|
(46 |
) |
|
972 |
|
Profit/(loss) for the
period |
|
606 |
|
|
(9,467 |
) |
Other comprehensive
Income/(loss) |
|
|
|
|
Income/(loss) for the
period |
|
606 |
|
|
(9,467 |
) |
Other comprehensive
income/(loss) for the period |
|
|
|
|
Item that may be reclassified
to profit or loss |
|
|
|
|
- Exchange
differences on translation of financial statements |
32 |
|
|
(12 |
) |
Other comprehensive
income/(loss) for the period, net of tax |
|
32 |
|
|
(12 |
) |
Total comprehensive
income/(loss) for the period |
|
638 |
|
|
(9,479 |
) |
|
|
|
|
|
Earnings/(loss) per
share
[2] |
|
|
|
|
Basic |
|
0.01 |
|
|
(0.09 |
) |
Diluted |
|
0.01 |
|
|
(0.09 |
) |
Weighted
average number of shares outstanding (thousand shares)
[2] |
|
|
Basic |
|
114,843 |
|
|
108,681 |
|
Diluted |
|
117,041 |
|
|
108,681 |
|
|
|
|
|
|
|
|
_____________________
[1] Included approximately US$4.8 million generated from hosting
service provided to a related party.
[2] After giving the effects of the reverse recapitalization
completed in April 2023.
Contacts
Investor RelationsRobin Yang, PartnerICR, LLCEmail:
Bitdeer.ir@icrinc.com Phone: +1 (212) 537-5825
Public RelationsBrad Burgess, SVPICR, LLCEmail:
Bitdeer.pr@icrinc.comPhone: +1 (212) 537-4056
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