Bitdeer Technologies Group ((BTDR)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call from Bitdeer Technologies Group highlighted a blend of strategic progress and financial hurdles. While the company faces financial setbacks due to challenging market conditions and increased R&D expenses, its commitment to vertical integration and advanced ASIC technology development suggests potential for future growth. Despite current financial losses and revenue declines, Bitdeer’s strategic initiatives are poised to drive long-term shareholder value.
Vertically-Integrated Business Strategy
Bitdeer has made significant strides in its vertically-integrated business strategy by acquiring a 19-acre site for a 101 megawatt gas-fired power plant near Foxcreek, Alberta. This positions Bitdeer as the world’s first fully vertically integrated Bitcoin miner, expected to result in some of the lowest Bitcoin mining costs in the industry.
Advanced ASIC Technology Development
The company is advancing its SEALMINER ASIC roadmap, with the SEALMINER A2s anticipated to deliver approximately 35 exahash by October 2025. The strong pre-order demand, exceeding capacity by six times, underscores the market’s confidence in Bitdeer’s technological advancements.
Strong Financial Position
Bitdeer ended the year with a robust financial position, holding $476.3 million in cash and cash equivalents, along with $77.5 million in cryptocurrencies. This liquidity provides the company with the means to continue its strategic investments.
Expansion of Power Capacity
The company has secured over 2.6 gigawatts of total power capacity, with about 1 gigawatt scheduled to be energized over 2025. This expansion supports Bitdeer’s self-mining and HPC/AI data center initiatives, further solidifying its market position.
Decline in Revenue and Gross Profit
Bitdeer experienced a decline in revenue and gross profit in Q4 2024, with revenue falling to $69 million from $114.8 million in Q4 2023, and gross profit decreasing to $5.1 million from $27 million. This was primarily due to the April 2024 Bitcoin halving and a higher global network hashrate.
Negative Adjusted EBITDA
The company reported a negative adjusted EBITDA of $3.8 million for Q4 2024, impacted by lower cloud hashrate and hosting revenue, as well as increased R&D expenses related to ASIC development.
Significant Net Loss
Bitdeer reported a significant IFRS net loss of $531.9 million for Q4 2024, driven by non-cash derivative losses and lower gross profit margins.
Challenges in Cloud and Hosting Business
The cloud and hosting business faced challenges, with cloud hashrate revenue declining to $2.3 million from $16.2 million, and hosting revenues decreasing due to contract expirations and the removal of older machines.
Forward-Looking Guidance
Looking ahead, Bitdeer has outlined its strategy to focus on the development of its own ASIC technology, aiming to achieve cost advantages and enhance its competitive position in the $4-5 billion annual ASIC market. The company plans to achieve a self-mining hashrate of approximately 40 exahash by Q4 2025, with additional potential from future wafer allocations. Bitdeer is optimistic about its ASIC roadmap, expecting to leverage its SEALMINER A2 and A3 models to gain significant market share by emphasizing energy efficiency.
In summary, Bitdeer Technologies Group’s earnings call reflected a strategic focus on vertical integration and advanced technology development amid financial challenges. While the company faces revenue declines and financial losses, its strategic initiatives and forward-looking guidance suggest potential for long-term growth and shareholder value.