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Date: 2025-02-25 20:32:39
Bitdeer Technologies Group has announced a net loss of $531.9 million for the last quarter of 2024, a significant rise from the $5 million loss in the corresponding period of the previous year.
Bitdeer, a firm specializing in blockchain and high-speed computing, disclosed its financial outcomes for the final quarter and entire year of 2024. The company posted a net loss of $531.9 million for the quarter, contrasting with a $5 million loss in the same quarter of the prior year. The total revenue for the last quarter of 2024 amounted to $69 million, a decrease from $114.8 million in the final quarter of 2023.
The decrease in revenue and higher net loss are ascribed to strategic investments in the development of proprietary application-specific integrated circuit technology (ASIC), which temporarily curbed hashrate growth. Nevertheless, Bitdeer retained $476.3 million in cash and cash equivalents as of Dec. 31, 2024.
In the current year, Bitdeer intends to activate its SEALMINER A1s and 28 exahashes per second of SEALMINER A2s, with the aim of achieving a total self-mining hashrate of around 40 exahashes per second by the final quarter of 2025. This enlargement is part of Bitdeer's plan to vertically integrate and fortify its competitive standing in the blockchain and high-performance computing sector.
At present, Bitdeer's stock (BTDR) is being traded at $9.10, marking a decline of over 30% on the day.
The considerable loss has sparked concerns among investors, but Bitdeer's 2.6-gigawatt power expansion and artificial intelligence data center initiatives could potentially facilitate a recovery. This trend is not exclusive to Bitdeer, as bitcoin miners, such as Crusoe Energy, have begun shifting towards artificial intelligence data center leasing to broaden their revenue streams.
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The wider bitcoin mining industry continues to grapple with challenges following the April 2024 halving event, which reduced daily bitcoin rewards from 900 to 450 coins. This reduction has raised the average cost of producing one bitcoin to $55,950 for U.S.-listed miners in the third quarter of 2024, with some estimates, including depreciation and stock-based compensation, going up to $106,000.
However, some analysts remain optimistic about the industry's future. Notably, H.C. Wainwright analysts expressed in a recent note that the fourth quarter of 2024 was a positive period for bitcoin miners as the asset exceeded $100,000 for the first time, driven by increased adoption following pro-cryptocurrency policies under President Donald Trump's re-election to the White House.
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