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 third quarter ended September 30, 2023.
Q3 2023 Financial
Highlights
- Total revenue was
US$87.3 million, compared to US$76.6 million in Q3 2022.
- Net loss was
US$1.8 million, compared to a net loss of US$22.1 million in Q3
2022.
- Adjusted profit
was US$10.5 million, compared to an adjusted loss of US$4.1 million
in Q3 2022.
- Adjusted
EBITDA was US$28.0 million, compared to US$8.7
million in Q3 2022.
- Cash and cash
equivalents were US$134.5 million as of September 30,
2023.
Linghui Kong, Chief Executive Officer of
Bitdeer, commented, “We delivered another robust performance in the
third quarter, as our self-mining business mined 1,085 Bitcoins,
representing a 121% year-over-year increase. We increased our
revenues by 14% to US$87.3 million and our adjusted EBITDA by 222%
to US$28.0 million year over year. These results were driven
primarily by a 64% increase in our total hash rate under management
over the past year to 21.2 EH/s, positioning us as one of the
largest publicly traded commercial miners in the world by hash
rate. Our operational and strategic excellence continued to drive
our results, with developments during the quarter providing a
foundation for long-term, sustainable growth. We recently became a
Preferred Cloud Service Provider in the NVIDIA Partner Network, and
we expect to launch Bitdeer AI Cloud in the first quarter of next
year, which will be among the first cloud services powered by
NVIDIA DGX SuperPod with DGX H100 systems in the Asia region. This
development opens the door for new opportunities which synergize
with our existing experience in cloud service and high-performance
computing. On the infrastructure front, we further expanded and
diversified our global footprint as our Bhutan-based Gedu
datacenter, the Company’s first datacenter in Asia, entered full
operations in August. This carbon-free datacenter has added 100MW
to our aggregate electrical capacity and 3.3EH/s to our proprietary
hash rate, and we expect to be able to further boost its
operational scale in the future. We are also making progress
towards the construction of a 175MW immersion cooling datacenter at
our Tydal mining facility in Norway, which we anticipate will be
completed in 2025. Moving forward, we will continue to evaluate the
allocation of our hash rate between our three distinct business
lines in order to further maximize profitability and shareholder
value.”
“To supplement last quarter’s US$1,000,000 share
repurchase program, our board of directors approved an additional
US$2,000,000 share repurchase program in October. We are confident
in the long-term stability and growth potential of our business,
and we remain committed to creating lasting value for our
shareholders.”
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$87.3 million in the third
quarter of 2023, compared to US$76.6 million in the corresponding
period of 2022, 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.
The Company’s increased hosting capacity also led to an increase in
revenue generated from hosting services. These increases were
partially offset by a decrease in revenue generated from Cloud Hash
Rate.
-
Net loss was US$1.8 million in the third quarter
of 2023, compared to a net loss of US$22.1 million in the
corresponding period of 2022. Net loss in the third quarter of 2023
was primarily caused by share-based payment expenses of US$12.3
million. Net loss in the third quarter of 2022 was primarily driven
by share-based payment expenses of US$18.0 million and elevated
electricity costs in Texas in the third quarter of 2022.
-
Adjusted profit was US$10.5 million in the third
quarter of 2023, compared to an adjusted loss of US$4.1 million in
the corresponding period of 2022. 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 the
listing fee and share-based payment expenses under IFRS 2.
-
Adjusted EBITDA was US$28.0
million in the third quarter of 2023, compared to US$8.7 million in
the corresponding period of 2022. 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 the listing fee and
share-based payment expenses under IFRS 2.
-
Cash and cash equivalents were US$134.5 million as
of September 30, 2023.
-
Total Borrowings were US$22.6 million as of
September 30, 2023.
Operational Highlights
Metrics |
Three Months Ended September 30, |
|
2023 |
2022 |
Total hash rate under management (EH/s) |
21.2 |
12.9 |
- Proprietary hash rate |
8.7 |
4.4 |
• Self-mining |
7.2 |
2.6 |
• Cloud Hash Rate |
1.5 |
1.8 |
- Hosting |
12.5 |
8.5 |
Mining machines under management |
221,000 |
143,000 |
- Self-owned |
92,000 |
56,000 |
- Hosted |
129,000 |
87,000 |
Aggregate electrical capacity
(MW) |
895 |
755 |
Bitcoin mined (self-mining only) |
1,085 |
490 |
-
Total hash rate under management, which consists
of proprietary hash rate and hosting hash rate, was 21.2 EH/s as of
September 30, 2023.
- Proprietary hash rate was 8.7 EH/s as of September 30, 2023,
with 7.2 EH/s allocated to the Company’s self-mining business and
1.5 EH/s to its Cloud Hash Rate business.
- Hosting hash rate was 12.5 EH/s as of September 30, 2023.
- Self-mining business mined 1,085 Bitcoins in
the third quarter of 2023, representing a 121.4% increase as
compared to 490 Bitcoins in the corresponding period of 2022, due
to the increase in hash rate allocated to the Company’s self-mining
business. The Company generally does not hold cryptocurrencies
obtained through its self-mining business, and promptly converts
them into fiat currency.
- Mining machines under management was
approximately 221,000 ASIC mining machines as of September 30,
2023.Self-owned mining machines for the Company’s self-mining
business and Cloud Hash Rate business increased to approximately
92,000, primarily due to the launch of the mining datacenter in
Bhutan.Hosted mining machines increased to approximately 129,000,
primarily due to the expansion of the Company’s mining datacenter
in North America, which provides more capacity to serve hosting
customers.
- Aggregate electrical capacity was 895MW across
six mining datacenters as of September 30, 2023, representing an
18.5% increase from 755MW as of September 30, 2022. The Company
also has another 175MW under construction in Norway as of September
30, 2023. The expansion to the Company’s Tydal mining facility in
Norway is expected to be completed in 2025.
- Total power usage was approximately 1,209,000
MWH across the Company’s six mining datacenters in the third
quarter of 2023.
- Average cost of electricity was approximately
US$32/MWH in the third quarter of 2023.
- Average miner efficiency was 32.4 J/TH as of
September 30, 2023.
Financial Results
|
Three Months EndedSeptember 30,
2023 |
|
(US$’000) |
Business lines |
Self-mining |
Cloud Hash Rate |
General Hosting |
MembershipHosting |
Revenue |
30,106 |
|
15,575 |
|
22,217 |
|
16,040 |
|
Cost of revenue |
|
|
|
|
Including: |
|
|
|
|
- Electricity cost in operating mining machines |
(15,166 |
) |
(3,534 |
) |
(9,642 |
) |
(9,263 |
) |
- Depreciation and share-based payment expenses |
(8,998 |
) |
(4,720 |
) |
(3,108 |
) |
(2,245 |
) |
- Other cash costs |
(2,355 |
) |
(1,218 |
) |
(1,739 |
) |
(1,293 |
) |
Total cost of revenue |
(26,519 |
) |
(9,472 |
) |
(14,489 |
) |
(12,801 |
) |
Gross profit / (loss) |
3,587 |
|
6,103 |
|
7,728 |
|
3,239 |
|
|
Three Months EndedSeptember 30,
2022 |
|
(US$’000) |
Business lines |
Self-mining |
Cloud Hash Rate |
General Hosting |
MembershipHosting |
Revenue |
10,792 |
|
26,636 |
|
26,739 |
|
4,704 |
|
Cost of revenue |
|
|
|
|
Including: |
|
|
|
|
- Electricity cost in operating mining machines |
(5,230 |
) |
(6,848 |
) |
(24,810 |
) |
(4,345 |
) |
- Depreciation and share-based payment expenses |
(5,945 |
) |
(7,794 |
) |
(4,118 |
) |
(583 |
) |
- Other cash costs |
(1,070 |
) |
(2,413 |
) |
(2,229 |
) |
(636 |
) |
Total cost of revenue |
(12,245 |
) |
(17,055 |
) |
(31,157 |
) |
(5,564 |
) |
Gross profit / (loss) |
(1,453 |
) |
9,581 |
|
(4,418 |
) |
(860 |
) |
Revenue
Total revenue was US$87.3 million in the third
quarter of 2023, compared to US$76.6 million in the third quarter
of 2022.
-
Self-mining revenue was US$30.1 million, compared to US$10.8
million in the third quarter of 2022, primarily due to the increase
in self-mining hash rate from the Company’s 100MW Gedu mining
datacenter in Bhutan that entered operations during the quarter as
well as a higher average price of Bitcoin.
- Cloud
Hash Rate revenue was US$15.6 million, compared to US$26.6 million
in the third quarter of 2022, primarily due to changes in the
amount of active Cloud Hash Rate orders.
-
General Hosting revenue was US$22.2 million, compared to US$26.7
million in the third quarter of 2022, primarily because the
capacity of general hosting was modestly lower in the third quarter
of 2023 compared to the same period of 2022.
-
Membership Hosting revenue was US$16.0 million, compared to US$4.7
million in the third quarter of 2022, primarily due to revenue
generated from the expansion of the Company’s mining datacenter in
North America, which provides more capacity to serve hosting
customers.
Cost of Revenue
Cost of revenue was US$66.2 million in the third quarter of
2023, compared to US$73.0 million in the corresponding period of
2022, primarily due to decreases in electricity costs, which were
elevated in the third quarter of 2022, and decreases in share-based
compensation and staff costs for mining datacenter personnel.
Gross Profit
Gross profit was US$21.1 million in the third quarter of 2023,
representing a 24.2% gross margin, compared to US$3.5 million, or a
4.6% gross margin, in the corresponding period of 2022.
Operating Expenses
The sum of below operating expenses in the third
quarter of 2023 was US$27.3 million, as compared to US$28.3 million
in the corresponding period of 2022.
- Selling
expenses were US$1.9 million, compared to US$2.3 million in the
third quarter of 2022, primarily due to decreases in share-based
compensation to sales personnel.
- General
and administrative expenses were US$16.8 million, compared to
US$18.9 million in the third quarter of 2022, 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$8.5 million, compared to
US$7.2 million in the third quarter of 2022, primarily due to
increases in salaries, wages, and other benefits caused by the
increase in the number of research and development personnel, and
increases in research and development technical service fees.
Net Loss
Net loss was US$1.8 million, compared to a net loss of US$22.1
million in the third quarter of 2022.
Adjusted Profit/(loss)
(Non-IFRS)
Adjusted profit was US$10.5 million, compared to an adjusted
loss of US$4.1 million in the third quarter of 2022.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was US$28.0 million, compared to
US$8.7 million in the third quarter of 2022, primarily due to the
increase in revenue and decreases in electricity costs and losses
on foreign currency transactions.
Liquidity
As of September 30, 2023, the Company held
US$134.5 million in cash and cash equivalents, as compared to
US$130.2 million as of June 30, 2023. The cash inflow mainly came
from the Company’s operational results, partially offset by use of
cash including payment for mining datacenter construction of
US$13.4 million and repayment of convertible debt of US$7.0
million.
Recent Developments
On October 19, 2023, the Company announced that
its board of directors had approved a new share repurchase program
under which the Company may repurchase up to US$2,000,000 worth of
its Class A ordinary shares, effective through April 17, 2024.
On November 9, 2023, the Company announced that
it had become a Preferred Cloud Service Provider (CSP) in the
NVIDIA Partner Network and plans to launch Bitdeer AI Cloud, among
the first cloud services powered by NVIDIA DGX SuperPOD with DGX
H100 systems in the Asia region. The service will provide Bitdeer’s
customers with access to NVIDIA AI supercomputing to help them
accelerate their development of generative AI, large language
models (LLMs), and other AI workloads. Bitdeer expects its upcoming
DGX SuperPOD-based high-performance cloud service platform to
launch in the first quarter of 2024.
About Bitdeer Technologies
Group
Bitdeer is a world-leading technology company
for blockchain and high-performance computing. Bitdeer is
committed to providing comprehensive digital asset computing
solutions for its customers. Bitdeer handles complex processes
involved in computing such as equipment procurement, transport
logistics, datacenter design and construction, equipment management
and daily operations. Headquartered in Singapore, Bitdeer
has deployed datacenters in the United States, Norway,
and Bhutan. To learn more, please
visit https://www.bitdeer.com/.
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 loss for the
relevant period to adjusted EBITDA and adjusted profit, for the
three and nine months ended September 30, 2023 and 2022.
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
Add: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
19,664 |
|
|
18,493 |
|
|
55,887 |
|
|
47,744 |
|
Income tax (benefit) /
expenses |
|
(1,458 |
) |
|
(5,282 |
) |
|
(4,265 |
) |
|
2,693 |
|
Interest (income)/ expense,
net |
|
(734 |
) |
|
(392 |
) |
|
(2,119 |
) |
|
1,337 |
|
Listing fee |
|
- |
|
|
- |
|
|
33,151 |
|
|
- |
|
Share-based payment
expenses |
|
12,319 |
|
|
18,025 |
|
|
34,166 |
|
|
72,450 |
|
Total of Adjusted
EBITDA |
|
27,993 |
|
|
8,707 |
|
|
65,195 |
|
|
76,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Profit /
(loss) |
|
|
|
|
|
|
|
|
Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
Add: |
|
|
|
|
|
|
|
|
Listing fee |
|
- |
|
|
- |
|
|
33,151 |
|
|
- |
|
Share-based payment
expenses |
|
12,319 |
|
|
18,025 |
|
|
34,166 |
|
|
72,450 |
|
Total of Adjusted
Profit / (loss) |
|
10,521 |
|
|
(4,112 |
) |
|
15,692 |
|
|
25,119 |
|
Unaudited Consolidated Statements of Financial
Position
|
|
As of September 30, |
|
As of December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
US$ |
|
US$ |
|
|
|
(in thousands) |
ASSETS |
|
|
|
|
|
Cash
and cash equivalents |
|
134,512 |
|
|
231,362 |
|
Cryptocurrencies |
|
9,126 |
|
|
2,175 |
|
Trade
receivables |
|
13,712 |
|
|
18,304 |
|
Amounts due from a related party |
|
1 |
|
|
397 |
|
Mining machines |
|
71,432 |
|
|
27,703 |
|
Prepayments and other assets |
|
90,860 |
|
|
59,576 |
|
Financial assets at fair value through profit or loss |
|
36,486 |
|
|
60,959 |
|
Restricted cash |
|
9,538 |
|
|
11,494 |
|
Right-of-use assets |
|
60,196 |
|
|
60,082 |
|
Property, plant and equipment |
|
153,297 |
|
|
138,636 |
|
Investment properties |
|
33,917 |
|
|
35,542 |
|
Intangible assets |
|
4,920 |
|
|
322 |
|
Deferred tax assets |
|
3,610 |
|
|
4,857 |
|
TOTAL ASSETS |
|
621,607 |
|
|
651,409 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Trade
payables |
|
24,962 |
|
|
15,768 |
|
Other
payables and accruals |
|
30,642 |
|
|
22,176 |
|
Amounts due to a related party |
|
126 |
|
|
316 |
|
Income tax payables |
|
948 |
|
|
657 |
|
Deferred revenue |
|
148,379 |
|
|
182,297 |
|
Borrowings |
|
22,562 |
|
|
29,805 |
|
Lease
liabilities |
|
71,066 |
|
|
70,425 |
|
Deferred tax liabilities |
|
4,162 |
|
|
11,626 |
|
TOTAL LIABILITIES |
|
302,847 |
|
|
333,070 |
|
|
|
|
|
|
|
NET ASSETS |
|
318,760 |
|
|
318,339 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
Share
capital* |
|
- |
|
|
- |
|
Treasury shares |
|
(233 |
) |
|
- |
|
(Accumulated deficit) / retained earnings |
|
(44,822 |
) |
|
6,803 |
|
Reserves* |
|
363,815 |
|
|
311,536 |
|
TOTAL EQUITY |
|
318,760 |
|
|
318,339 |
|
__________________
* After giving the effects of the reverse recapitalization
completed in April 2023.
Unaudited Consolidated Statements of Operations and
Comprehensive Loss
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
Revenue |
|
87,303 |
|
|
76,582 |
|
|
253,706 |
|
|
256,201 |
|
Cost
of revenue |
|
(66,187 |
) |
|
(73,040 |
) |
|
(202,941 |
) |
|
(183,662 |
) |
Gross profit |
|
21,116 |
|
|
3,542 |
|
|
50,765 |
|
|
72,539 |
|
Selling expenses |
|
(1,926 |
) |
|
(2,307 |
) |
|
(6,241 |
) |
|
(8,610 |
) |
General and administrative expenses |
|
(16,849 |
) |
|
(18,880 |
) |
|
(49,320 |
) |
|
(71,566 |
) |
Research and development expenses |
|
(8,501 |
) |
|
(7,155 |
) |
|
(21,228 |
) |
|
(26,898 |
) |
Listing fee |
|
- |
|
|
- |
|
|
(33,151 |
) |
|
- |
|
Other
operating income / (expenses) |
|
818 |
|
|
34 |
|
|
718 |
|
|
(2,757 |
) |
Other
net gain |
|
862 |
|
|
96 |
|
|
2,470 |
|
|
1,226 |
|
Loss from operations |
|
(4,480 |
) |
|
(24,670 |
) |
|
(55,987 |
) |
|
(36,066 |
) |
Finance income / (expenses) |
|
1,224 |
|
|
(2,749 |
) |
|
97 |
|
|
(8,572 |
) |
Loss before taxation |
|
(3,256 |
) |
|
(27,419 |
) |
|
(55,890 |
) |
|
(44,638 |
) |
Income tax benefit / (expenses) |
|
1,458 |
|
|
5,282 |
|
|
4,265 |
|
|
(2,693 |
) |
Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
Other comprehensive Loss |
|
|
|
|
|
|
|
|
Loss
for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
Other
comprehensive income for the periods |
|
|
|
|
|
|
|
Item
that may be reclassified to profit or loss |
|
|
|
|
|
|
|
|
- Exchange differences on translation of financial
statements |
|
8 |
|
|
11 |
|
|
17 |
|
|
11 |
|
Other comprehensive income for the periods, net of
tax |
|
8 |
|
|
11 |
|
|
17 |
|
|
11 |
|
Total comprehensive loss for the periods |
|
(1,790 |
) |
|
(22,126 |
) |
|
(51,608 |
) |
|
(47,320 |
) |
|
|
|
|
|
|
|
|
|
Loss per share* |
|
|
|
|
|
|
|
|
Basic |
|
(0.02 |
) |
|
(0.20 |
) |
|
(0.47 |
) |
|
(0.44 |
) |
Diluted |
|
(0.02 |
) |
|
(0.20 |
) |
|
(0.47 |
) |
|
(0.44 |
) |
Weighted average number of shares outstanding (thousand
shares)* |
|
|
|
|
|
|
|
|
Basic |
|
111,284 |
|
|
108,681 |
|
|
110,303 |
|
|
108,681 |
|
Diluted |
|
111,284 |
|
|
108,681 |
|
|
110,303 |
|
|
108,681 |
|
__________________
* 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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