Bitcoin Miner Bitdeer (NASDAQ: BTDR) Grows Q2 Revenue Amid Volatile Market Backdrop

Bitcoin miner Bitdeer Technologies Group BTDR, which is behind the SEALMINER application-specific integrated circuit (ASIC) technology, has reported its Q2 2024 financial results. Bitdeer seems to have held its own against a challenging mining backdrop, owing to difficult broader market conditions in the wake of the Bitcoin mining halving event. 

After reaching an all-time high of over $73,000 in March, the Bitcoin price has pulled back, but remains up 133% over the past 12-month stretch. Bitdeer's performance seems to be resilient, generating year-over-year growth across its revenue, gross profit and adjusted EBITDA, despite also suffering a net loss. 

Among the quarterly highlights, the Singapore-based blockchain company's total revenue came in slightly below $100 million, up roughly 6% compared with year-ago results of $93.8 million. Performance was driven largely by Bitdeer's self-mining division, the revenue for which nearly doubled to $41.6 million compared with $21.6 million in the year-ago period. Bitdeer's proprietary self-hosted business mined 628 Bitcoins during the quarter. The company generally sells those Bitcoins for cash shortly after mining them. 

Self-mining revenue drivers were two-pronged, comprising a soaring self-mining hashrate, which reflects total computing power, to 7.3 EH/s from 3.8 EH/s in its Bhutan mining datacenter as well as a bullish Bitcoin price. The Bhutan facility became operational in H2 2023. 

Bitdeer's cloud hash rate revenue declined by a sharp 33% in the quarter, owing to broader market conditions leading to changes in the amount of active orders and a drop in electricity subscriptions amid lower margins caused by the Bitcoin halving event in April. The Bitcoin halving had a domino effect, causing the temporary shutdown of hosting mining rigs and pressuring general hosting revenue. However, it is important to note that any hash rate allocated to cloud mining rolls into self mining when these contracts roll off.

Bitdeer remains profitable on an adjusted EBITDA basis, with that metric coming in at $24.9 million and representing a 25% increase compared to year-ago levels. Its Q2 gross profit came in at $24.4 million, ballooning 50% higher compared with $16.2 million in the year-ago period. 

However, Bitdeer continues to operate at a net loss, which amounted to $17.7 million in the quarter compared with a $40.4 million net loss in the year-ago quarter. The most recent net loss was associated with a non-cash expense of the fair value change for warrants on stablecoin company Tether, with which Bitdeer partnered for a private placement financing earlier this year. Those warrants could still be converted to equity, thereby offsetting any liabilities.

Bitdeer's R&D run rate continues to hover in the range of $5 million-$6 million as the company moves ahead on the optimization of its SEALMINER technology series and upgrades at its global datacenter facilities. 

Graphic Source: Bitdeer on LinkedIn 

Bitdeer ended the quarter with nearly $204 million in cash and cash equivalents on the balance sheet, including close to $25 million in cryptocurrency. The company operates in a capex-heavy industry, directing $17.5 million into its products and mining machines during the quarter. As its ASIC chip and machine production continues to ramp up, Bitdeer may be able to offset these investments while continuing to grow revenue.

Of the Q2 performance, Bitdeer Chief Business Officer Matt Kong stated, "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." 

Bitdeer's Operations And Outlook 

Bitdeer has several datacenter projects under development across the United States, Norway and Bhutan, all of which the company says remain on track. It has set its sights on expansion and expects these projects will support its growth for the foreseeable future. In its power and data center infrastructure business, Bitdeer signed a 30-year lease agreement for 570 MW of power capacity in Ohio, thereby strengthening its total capacity. 

Earlier this year, Bitdeer launched a high-performance computing (HPC) and AI business, for which it deployed Nvidia NVDA systems in Singapore and achieved a 100% utilization rate at the start of Q3. 

During Q2, Bitdeer reports that it advanced its SEALMINER ASIC roadmap, including the recent acquisition of crypto ASIC design company Desiweminer. Bitdeer has deployed its maiden batch of its SEALMINER A1 chips, initiating mass production with a view to add 3.4 EH/s into its data centers by year-end 2024. 

Bitdeer is awaiting delivery of its second-generation SEAL02 chip products by the end of Q3, after which time it plans to ramp up production for deployment by year-end. Once these chips become available, Bitdeer says it will have the opportunity to generate immediate cash flow from customer pre-orders. 

Bitdeer On Investor Radars 

Despite uncertainty around where the Bitcoin price will end in 2024, Bitdeer says it has a robust roadmap, one that involves an ambitious pipeline around its self-mining business, ASIC miner technology, cloud capabilities, AI-powered data centers and more. While Bitdeer's stock is currently trading below its 52-week high, Wall Street analysts have an average "buy" rating on BTDR shares, suggesting that the stock could have more runway for gains. 

Investors who are interested in participating in the Bitcoin mining sector can learn more about Bitdeer's stock here.

Featured photo by the-design_org on Pixabay.

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