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Bitdeer Reported Unaudited Financial Results for the Third Quarter of 2024

SINGAPORE, November 18, 2024 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today released its unaudited financial and operational results for the third quarter ended September 30, 2024.

Q3 2024 Financial Highlights

Management Commentary

“This quarter marked a foundational period for Bitdeer, focused on the advancements of our key technological and strategic initiatives,” stated Matt Kong, Chief Business Officer at Bitdeer. “In our ASICs business, we made substantial progress in the commercialization of our SEALMINER mining rigs that will help diversify our revenue streams and accelerate the growth of our self-mining operations. For SEALMINER A1, the first sample batch was successfully energized and production of 3.7 EH/s is expected to be completed and installed into our datacenters in Texas and Norway in phases from December through Q1 2025 for the time being. Furthermore, in October, we successfully launched our second generation SEALMINER A2 mining machine series equipped with our SEAL02 chip. The A2 series includes both an air-cooling and a hydro-cooling model and boasts a hashrate of 226 TH/s and 446 TH/s, with a power efficiency ratio of 16.5 J/TH. Further, in October, we commenced mass production of our SEALMINER A2 series and the first production run is expected to deliver 18 EH/s, which will be used for self-mining and selling to external customers. Notably, SEALMINER A2 will be a significant milestone as we enter this multi-billion dollar market. We are already engaged in discussion with a number of potential customers, and early demand is promising, indicating strong interest in our cutting-edge technology and the industry’s desire for supply chain diversification.”

Mr. Kong continued, “In our Cloud HPC and AI business, our NVIDIA DGX SuperPOD system at our datacenter in Singapore successfully achieved approximately 98% utilization in September, and we expanded a pilot program in Canada. Additionally, we’re actively exploring ways to leverage our substantial 2.5 GW power capacity across three continents to meet the growing demand from HPC and AI datacenters. TLM Group successfully completed their feasibility assessment of our U.S. sites and confirmed the suitability of several of them for Tier 3 HPC and AI datacenters. These sites have abundant power available in a short time frame, low-latency fiber and plentiful water resources. We have commenced discussions with potential partners and end users for these sites and are actively collaborating with leading data center developers and advisors to secure long-term partnerships and strategic opportunities that can position Bitdeer to play a pivotal role in the rapidly evolving HPC and AI ecosystem. Finally, our global infrastructure expansion continues to progress, with projects in Norway, Ohio, and Texas, and Bhutan set to bring online over an estimated 1.1 GW of new power capacity in the coming year.”

Site / Location	Capacity (MW)	Status	Timing2
Electrical capacity
- Rockdale, Texas	563	Online	Completed
- Knoxville, Tennessee	86	Online	Completed
- Wenatchee, Washington	13	Online	Completed
- Molde, Norway	84	Online	Completed
- Tydal, Norway	50	Online	Completed
- Gedu, Bhutan	100	Online	Completed
Total electrical capacity	8953
Pipeline capacity
- Tydal, Norway Phase 1	40	In progress	Q4 2024
- Tydal, Norway Phase 2	135	In progress	Mid 2025
- Massillon, Ohio	221	In progress	Mid-to-late 2025
- Clarington, Ohio Phase 1	266	In progress	Q3 2025
- Clarington, Ohio Phase 2	304	Pending approval	Estimate 2026
- Jigmeling, Bhutan	500	In progress	Mid-Late 2025
- Rockdale, Texas	179	In planning	Estimate 2026
Total pipeline capacity	1,645
Total global electrical capacity	2,540

US $ in millions	Three Months Ended
	Sep 30, 2024	Jun 30, 2024	Sep 30, 2023
Total revenue	62.0	99.2	87.3
Cost of revenue	(59.2)	(74.8)	(66.2)
Gross profit	2.8	24.4	21.1
Net loss	(50.1)	(17.7)	(1.8)
Adjusted EBITDA	(8.5)	24.9	28.0
Cash and cash equivalents	291.3	203.9	134.5

US $ in millions	Three Months Ended Sep 30, 2024
Business lines	Self-Mining	Cloud Hash Rate	General Hosting	Membership Hosting
Revenue	31.5	7.1	9.6	9.9
Cost of revenue
- Electricity cost in operating mining machines	(21.7)	(0.0)	(7.1)	(5.3)
- Depreciation and SBC expenses	(9.9)	(2.2)	(1.8)	(1.9)
- Other cash costs	(3.1)	(0.7)	(0.9)	(1.0)
Total cost of revenue	(34.7)	(2.9)	(9.8)	(8.2)
Gross profit / (loss)	(3.2)	4.2	(0.2)	1.7

US $ in millions	Three Months Ended Sep 30, 2023
Business lines	Self-Mining	Cloud Hash Rate	General Hosting	Membership Hosting
Revenue	30.1	15.6	22.2	16.0
Cost of revenue
- Electricity cost in operating mining machines	(15.2)	(3.5)	(9.6)	(9.3)
- Depreciation and SBC expenses	(9.0)	(4.7)	(3.1)	(2.2)
- Other cash costs	(2.3)	(1.3)	(1.8)	(1.3)
Total cost of revenue	(26.5)	(9.5)	(14.5)	(12.8)
Gross profit	3.6	6.1	7.7	3.2

•	Total revenue was US$62.0 million vs. US$87.3 million.

•

Self-mining revenue was US$31.5 million vs. US$30.1 million, primarily due to the increase in the average self-mining hashrate for the quarter by 27.9% to 7.8 EH/s from 6.1 EH/s last year and higher year-over-year Bitcoin prices, offset by effect of the April 2024 halving and higher global network hashrate.

•

Cloud Hash Rate revenue was US$7.1 million vs. US$15.6 million. The decline was primarily due to expiration of long-term Cloud Hashrate contracts and subsequent reallocation of machines to Self-mining, and the decrease in electricity subscription due to lower margins for customers caused by the April 2024 Halving.

•

General Hosting revenue was US$9.6 million vs. US$22.2 million. The decline was primarily due to the conversion of 100 MW of hosting capacity to hydro-cooling capacity for self-mining and certain hosting customers removing older and less efficient rigs following the April 2024 Halving as a result of reduced mining economics.

•	Membership Hosting revenue was US$9.9 million vs. US$16.0 million, down year-over-year. Similar to general hosting, the decline was primarily driven by customers reducing the operation for these older and less efficient rigs following the April 2024 Halving as a result of reduced mining economics.

•	Cost of revenue was US$59.2 million vs US$66.2 million. The decrease was primarily driven by lower mining rigs depreciation from becoming fully depreciated and the decrease of power usage along with the reduced hosted mining rigs.

•	Gross profit was US$2.8 million vs. US$21.1 million.

•	Gross margin was 4.5% vs. 24.2%.

•	The sum of the operating expenses below was US$42.9 million vs. US$27.3 million.

•

Selling expenses were US$2.2 million vs. US$1.9 million, primarily due to increased marketing expenses.

•

General and administrative expenses were US$15.8 million vs. US$16.8 million, 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$24.8 million vs. US$8.5 million, primarily due to a US$13.4 million one-off incremental development expense related to the SEAL02 chip, higher R&D compensation costs and amortization expenses of intangible assets relating to the acquisition of FreeChain.

•

In Q3 2024, we recorded US$14.7 million other net loss primarily due to the non-cash expense of fair value change of derivative liabilities, which are the US$28.8 million of loss on fair value change for the convertible note issued, partially offset by the US$14.3 million of gain on fair value change for Tether warrants.

•	Net loss was US$50.1 million vs. US$1.8 million.

•	Adjusted loss was US$26.2 million vs. adjusted profit of US$10.5 million. The change was primarily due to the year-over-year revenue decline, lower gross profit margins and higher operating expenses as described above.

•	Adjusted EBITDA was negative US$8.5 million vs. US$28.0 million. The decrease was primarily due to the year-over-year revenue decline, lower gross profit margins and higher operating expenses as described above.

•	Net cash used for operating activities was US$90.7 million.

•	Net cash generated from investing activities was US$10.2 million including the proceeds from disposal of cryptocurrencies of US$39.9 million received from the principal businesses.

•	Net cash generated from financing activities was US$168.1 million, primarily driven by the proceeds from our convertible note issuance in August.

•	Capital expenditures for PPE, intangible assets and mining machines were US$30.1 million vs. US$13.8 million, primarily driven by the construction in Jigmeling, Tydal, and Hydro-cooling conversion in Texas.

•	As of September 30, 2024, the Company held US$291.3 million in cash and cash equivalents, US$39.7 million in cryptocurrencies and US$92.7 million in borrowing.

BITDEER GROUP UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
		As of Sep 30,				As of Dec 31,
(US $ in thousands)		2024				2023
ASSETS
Cash and cash equivalents			291,314				144,729
Cryptocurrencies			39,700				15,371
Trade receivables			8,800				17,277
Amounts due from a related party			15,868				187
Prepayments and other assets			68,791				97,087
Inventories			68,633				346
Financial assets at fair value through profit or loss			41,566				37,775
Restricted cash			9,144				9,538
Mining machines			52,062				63,477
Right-of-use assets			65,797				58,626
Property, plant and equipment			221,233				154,860
Investment properties			33,009				34,346
Intangible assets[1]			89,401				4,777
Goodwill[1]			35,818				-
Deferred tax assets			5,297				991
TOTAL ASSETS			1,046,433				639,387
LIABILITIES
Trade payables			36,881				32,484
Other payables and accruals			34,798				32,151
Amounts due to a related party			6,202				33
Income tax payables			3,050				3,367
Derivative liabilities			144,378				-
Deferred revenue			111,382				144,337
Borrowings			92,693				22,618
Lease liabilities			78,728				70,211
Deferred tax liabilities			17,575				1,620
TOTAL LIABILITIES			525,687				306,821
NET ASSETS			520,746				332,566
EQUITY
Share capital			*				*
Treasury shares			(926	)			(2,604	)
Accumulated deficit			(117,087	)			(49,853	)
Reserves			638,759				385,023
TOTAL EQUITY			520,746				332,566

BITDEER GROUP UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
		Three months ended Sep 30,								Nine months ended Sep 30,
(US $ in thousands)		2024				2023				2024				2023
Revenue[2]			62,029				87,303				280,764				253,706
Cost of revenue			(59,264	)			(66,187	)			(219,463	)			(202,941	)
Gross profit			2,765				21,116				61,301				50,765
Selling expenses			(2,229	)			(1,926	)			(6,092	)			(6,241	)
General and administrative expenses			(15,828	)			(16,849	)			(46,649	)			(49,320	)
Research and development expenses			(24,836	)			(8,501	)			(54,048	)			(21,228	)
Listing fee			-				-				-				(33,151	)
Other operating income			1,220				818				4,397				718
Other net gain / (loss)			(14,681	)			862				(27,701	)			2,470
Loss from operations			(53,589	)			(4,480	)			(68,792	)			(55,987	)
Finance income / (expenses)			(231	)			1,224				(124	)			97
Loss before taxation			(53,820	)			(3,256	)			(68,916	)			(55,890	)
Income tax benefit			3,723				1,458				1,682				4,265
Loss for the periods			(50,097	)			(1,798	)			(67,234	)			(51,625	)
Other comprehensive loss
Loss for the periods			(50,097	)			(1,798	)			(67,234	)			(51,625	)
Other comprehensive income / (loss) for the periods
Item that may be reclassified to profit or loss
- Exchange differences on translation of financial statements			(30	)			8				16				17
Other comprehensive income / (loss) for the periods, net of tax			(30	)			8				16				17
Total comprehensive loss for the periods			(50,127	)			(1,790	)			(67,218	)			(51,608	)
Loss per share (Basic and diluted)			(0.35	)			(0.02	)			(0.52	)			(0.47	)
Weighted average number of shares outstanding (thousands) (Basic and diluted)			143,769				111,284				128,437				110,303

BITDEER GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Three months ended Sep 30,								Nine months ended Sep 30,
(US $ in thousands)		2024				2023				2024				2023
Cash flows from operating activities
Cash used in operating activities			(90,164	)			(48,303	)			(291,538	)			(206,905	)
Interest paid on leases			(895	)			(647	)			(2,571	)			(1,946	)
Interest paid on borrowings			(806	)			(34	)			(1,736	)			(1,241	)
Interest received			1,927				1,465				5,462				5,539
Income tax paid			(782	)			(58	)			(6,632	)			(153	)
Net cash used in operating activities			(90,720	)			(47,577	)			(297,015	)			(204,706	)
Cash flows from investing activities
Purchase of property, plant and equipment, investment properties and intangible assets			(29,922	)			(13,371	)			(76,870	)			(37,980	)
Purchase of mining machines			(227	)			(424	)			(1,965	)			(62,934	)
Purchase of financial assets at fair value through profit or loss, net of refund received			173				(3,000	)			(2,351	)			(4,400	)
Proceeds from disposal of financial assets at fair value through profit or loss			-				-				-				31,111
Lending to a third party			-				-				-				(62	)
Proceeds from disposal of property, plant and equipment			-				-				244				29
Proceeds from disposal of cryptocurrencies			39,929				76,805				209,653				202,045
Cash paid for business acquisitions, net of cash acquired			226				-				(6,051	)			-
Net cash generated from investing activities			10,179				60,010				122,660				127,809
Cash flows from financing activities
Capital element of lease rentals paid			(562	)			(1,376	)			(3,136	)			(4,008	)
Net payment related to Business Combination			-				(11	)			-				(7,662	)
Repayments of borrowings			(5,000	)			(7,000	)			(5,000	)			(7,000	)
Proceeds from issuance of shares for exercise of share rewards			154				-				758				-
Proceeds from issuance of ordinary shares and warrants, net of transaction costs			7,795				-				163,190				-
Acquisition of treasury shares			(617	)			(109	)			(617	)			(109	)
Proceeds from convertible senior notes, net of transaction costs			166,297				-				166,297				-
Net cash generated from / (used in) financing activities			168,067				(8,496	)			321,492				(18,779	)
Net increase / (decrease) in cash and cash equivalents			87,526				3,937				147,137				(95,676	)
Cash and cash equivalents at the beginning of the period			203,882				130,203				144,729				231,362
Effect of movements in exchange rates on cash and cash equivalents held			(94	)			372				(552	)			(1,174	)
Cash and cash equivalents at the end of the period			291,314				134,512				291,314				134,512

BITDEER GROUP NON-IFRS ADJUSTED EBITDA AND ADJUSTED PROFIT / (LOSS) RECONCILIATION
		Three months ended Sep 30,								Nine months ended Sep 30,
(US $ in thousands)		2024				2023				2024				2023
Adjusted EBITDA
Loss for the periods			(50,097	)			(1,798	)			(67,234	)			(51,625	)
Add：
Depreciation and amortization			19,489				19,664				55,980				55,887
Income tax benefit			(3,723	)			(1,458	)			(1,682	)			(4,265	)
Interest income / (expenses), net			1,938				(734	)			1,321				(2,119	)
Listing fee			-				-				-				33,151
Change in fair value of derivative liabilities			14,436				-				28,666				-
Share-based payment expenses			9,414				12,319				25,310				34,166
Total of Adjusted EBITDA			(8,543	)			27,993				42,361				65,195
Adjusted Profit / (loss)
Loss for the periods			(50,097	)			(1,798	)			(67,234	)			(51,625	)
Add：
Listing fee			-				-				-				33,151
Change in fair value of derivative liabilities			14,436				-				28,666				-
Share-based payment expenses			9,414				12,319				25,310				34,166
Total of Adjusted Profit / (loss)			(26,247	)			10,521				(13,258	)			15,692