Bitdeer Technologies Group (NASDAQ: BTDR) Q3 Earnings Highlights: Net Loss Slashed, Gross Profit And Gross Margin Up

Bitdeer Technologies Group BTDR, a global leader in blockchain and high-performance computing, recently announced its unaudited financial results for the third quarter of 2023. The report provides a thorough analysis of the company's financial and operational performance as well as insights into its current position in the technology market.

Financial Highlights

Bitdeer's financial performance in Q3 2023 showcased improvements in revenue and profitability.

Revenue Growth 

Bitdeer reported third-quarter revenue of $87.3 million, a 14% year-over-year increase from $76.6 million in the same period last year. This growth was largely driven by the expansion of Bitdeer's increased hosting capacity and self-mining business, which grew 122% year-over-year.

Net Loss Reduction And Gross Profit Increase

Bitdeer showed a significant reduction in its net loss, down to $1.8 million in Q3 2023 from $22.1 million in the third quarter of 2022. Additionally, the company’s total cost of revenue was $66.2 million, a decline from $73 million in 2022. These improvements were primarily due to lower share-based payment expenses and electricity costs compared to the previous year.

Bitdeer’s gross profit for the quarter was $21.1 million, with a healthy gross margin of 24.2%. This marked a significant improvement over 2022’s figures of $3.5 million and 4.6%, respectively. 

Adjusted Profit And EBITDA

Bitdeer’s adjusted profit for the quarter stood at $10.5 million, a positive improvement from its adjusted loss of $4.1 million in the third quarter of 2022. Its adjusted earnings also saw a rise to $28 million, an increase of more than 221% from $8.7 million in the same period last year. 

Peer Comparison

To put Bitdeer’s financial results into context, here are the Q3 highlights for competitor Riot Platforms, Inc RIOT:

• Total Revenue: Riot’s total revenue from the third quarter was $51.9 million, a 12.0% increase from $46.3 million in the same period in 2022.
• Net Loss: Riot reported a loss of $45.3 million or $0.25 per share, a 39.8% increase from the $32.4 million or $0.21 per share in the same period in 2022.
• Adjusted EBITDA: Riot reported $31.6 million in adjusted EBITDA, a more than 600% increase compared to the $4.3 million in the same period in 2022.
• Hash Rate Growth: Riot expects a total self-mining hash rate capacity of 12.5 exahash per second (EH/s) in Q4 2023. By mid-2024, the total self-mining hash rate capacity is expected to reach 20.2 EH/s.
• Bitcoin Production: Riot mined 1,106 Bitcoin during the quarter, a 6.1% increase from the 1,042 Bitcoin mined in the same period in 2022.

Operational Highlights

Bitdeer's operational achievements in Q3 2023 further underscored its commitment to technological innovation and expansion, key drivers of its market position.

The total hash rate under Bitdeer's management reached 21.2 exahash per second (EH/s) as of September 30. The self-mining business also mined 1,085 Bitcoins in the third quarter, a significant increase from the 490 Bitcoins it mined in the same period last year.

Bitdeer also increased its aggregate electrical capacity to 895 MW across six data centers, with an additional 175 MW under construction in Norway. Its first data center in Asia also entered full operations, adding 100MW to its electrical capacity and underscoring the company’s commitment to and success in its global expansion.

Other Developments

Bitdeer also reported making strides through a new partnership with one of Wall Street’s darlings with its soon-to-be-launched Bitdeer AI Cloud.

Bitdeer is positioning itself for future growth with strategic partnerships, including becoming a Preferred Cloud Service Provider in the NVIDIA Corporation NVDA Partner Network. Consistent with that partnership, the company is expanding its offerings with the launch of Bitdeer AI Cloud early next year, one of the first cloud services in Asia powered by the NVIDIA DGX SuperPod with DGX H100 systems. 

Bitdeer's Path Forward

Overall, Bitdeer Technologies Group's third-quarter results indicate a growing position in the Bitcoin mining, cloud computing and high-performance computing industries. On the Bitcoin mining front, the company stated that it will continue to evaluate the allocation of hash rate between its three distinct business lines (self-mining, cloud hash rate and hosting) in order to further maximize profitability and shareholder value.

The company's focus on operational efficiency, revenue growth, technological advancement and strategic expansion with partners like NVIDIA further suggests a potentially promising future as it continues to grow and widen the scope of its offerings.

Featured photo by Alexander Schimmeck from Unsplash.

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