Bitdeer Technologies Group (BTDR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $62 million, gross profit $2.8 million, and adjusted EBITDA negative $8.5 million, reflecting a decline year-over-year due to the Bitcoin halving, higher network hash rate, and increased R&D costs for SEAL02 chip development.

• Net loss was $50.1 million versus $1.8 million prior year, with significant one-time SEAL02 chip expense.

• Strategic focus remains on vertical integration, with significant progress in SEALMINER ASIC development, new product launches, and infrastructure expansion to support self-mining and AI cloud services.

• AI cloud business achieved 98% utilization in Singapore and expanded GPU cloud capacity into Canada, targeting LLM training and inference.

• Infrastructure projects in Norway, Texas, Bhutan, and Ohio are progressing, with over 1.1 GW of new power capacity expected online in the next year.

Financial highlights

• Q3 consolidated revenue declined to $62 million from $87.3 million year-over-year.

• Self-mining revenue rose 4.7% to $31.5 million, driven by higher hash rate and Bitcoin prices, but offset by the April 2024 halving.

• Cloud hash rate revenue fell to $7.1 million from $15.6 million, and hosting revenue dropped to $9.6 million from $22.2 million.

• Gross margin decreased to 4.5% from 24.2%, mainly due to lower hosting/cloud revenues and higher power prices.

• IFRS net loss was $50.1 million versus $1.8 million; adjusted profit was negative $26.2 million versus positive $10.5 million.

Outlook and guidance

• CapEx for infrastructure build-out expected to accelerate, with $250–$275 million planned between Q4 2024 and 2025, excluding SEALMINER CapEx.

• SEALMINER A2 mass production underway, with 18 exahash to be allocated between self-mining and external sales; commercial deliveries start Q1 2025.

• Third-generation chip samples expected in Q2 2025, and a fourth-generation chip targeting 5 J/TH efficiency planned for late 2025.

• Over 1.1 GW of new power capacity to come online in Norway, Ohio, Texas, and Bhutan in the next year.

• Continued focus on diversifying revenue between Bitcoin mining and AI/HPC data centers, with flexibility to allocate power capacity based on market conditions.