Bitdeer Announces April 2024 Operations Updates

Rhea-AI Summary

Bitdeer Technologies Group (NASDAQ: BTDR) provided an update on its operations for April 2024. The company mined 265 Bitcoins, a 13.7% increase from the same period last year but a 9.9% decline from March 2024 due to the Bitcoin halving event. Infrastructure projects in Norway, the United States, and Bhutan are progressing, with the Jigmeling Datacenter expected to be completed in mid-2025.

Positive

• The Company reported a 13.7% increase in Bitcoin mined in April 2024 compared to the previous year, showcasing growth in its mining operations.

• Progress in infrastructure projects in Norway, the United States, and Bhutan demonstrates the Company's commitment to expanding its mining capabilities.

• The planned completion of the Tydal Datacenter expansion and the Ohio Datacenter by mid-2025 signifies future growth potential for Bitdeer Technologies Group.

Negative

• The decline of 9.9% in Bitcoin mined in April 2024 compared to March 2024 following the Bitcoin halving event indicates potential short-term challenges in the mining operations.

• The completion timeline for infrastructure projects, such as the Jigmeling Datacenter in Bhutan, may face delays, impacting the overall operational timeline of the Company.

• The Company's reliance on converting cryptocurrencies into fiat currency could expose it to market volatility and currency exchange risks.

Insights

Financial Analyst

Examining the operations update from Bitdeer, the 13.7% year-over-year increase in Bitcoin mining is a positive signal, reflecting an effective scale-up in operations amid fluctuating cryptocurrency markets. However, investors should be conscious of the 9.9% month-over-month decline in Bitcoin mined, which is attributed to the recent Bitcoin halving event. This demonstrates the inherent volatility and sensitivity of mining operations to network changes. The static figures in hash rate and the number of mining machines suggest a balancing act between expansion and operational efficiency. The consistent electrical capacity indicates controlled growth and could be a sign of strategic resource management. Despite the halving event, stable operation of existing datacenters and progress in new sites, such as in Bhutan and Ohio, suggest potential for increased capacity and output in the future. This could potentially lead to higher revenue streams from both self-mining and hosting services. Investors will also be tracking the upcoming immersion cooling datacenter developments, as these could significantly improve mining efficiency and lower operational costs, thus potentially impacting future profitability.

Tech Industry Analyst

From a technological perspective, Bitdeer's progression in the ASIC mining machine project is noteworthy. The transition from laboratory testing to small batch trial production could be indicative of a move towards in-house hardware capabilities, reducing dependence on third-party suppliers and mitigating risks related to hardware shortages. Investors should note the strategic value in controlling more of the mining value chain, which can lead to improved margins. Furthermore, the development of AI cloud services may indicate diversification of the company's revenue streams beyond cryptocurrency dependence. This could be particularly beneficial in buffering against the volatility of cryptocurrency markets. With the impending expansion of datacenter capacities, one should observe how effectively Bitdeer leverages these increased resources to support both its mining and AI cloud service offerings.

Energy Sector Analyst

The power pricing agreement for Bitdeer's Gedu datacenter is a significant aspect for investors to consider, as energy costs are a major factor in the profitability of mining operations. The ability to secure favorable energy prices can provide a competitive edge and help maintain profitability even during downturns in cryptocurrency valuation. Additionally, the expansion into new sites with substantial electrical capacities, like the 500MW facility in Bhutan, reflects a forward-looking approach to securing energy resources for future growth. The immersion cooling technology being implemented in the Tydal Datacenter is another critical element, as it represents an evolution in energy efficiency practices within the industry. As reducing energy consumption is increasingly important from both cost and environmental standpoints, such advancements could be advantageous for the company's long-term sustainability and public image.

SINGAPORE, May 07, 2024 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today announced its unaudited mining and operations updates for April 2024.

Linghui Kong, Chief Business Officer of Bitdeer, commented, “The month of April marked a period of stable operations for our company as we made steady progress towards our long-term development goals. We mined 265 Bitcoins in total during April, representing an increase of 13.7% from the same period last year and a decline of 9.9% from March 2024. This month-over-month decline was related to the impact of the latest Bitcoin halving event, which occurred on April 19, 2024. Our Gedu datacenter maintained stable operations throughout the month of April, thanks in large part to our power pricing agreement for the site, which has allowed us to operate the site with lower costs and without the need to curtail datacenter activity.

“In terms of infrastructure, the ground leveling work at our Jigmeling datacenter site in Bhutan is progressing as planned. At present, around 70% of the ground leveling work for substation construction has been completed. We have also confirmed with our suppliers the purchase plan for the electrical equipment required for the substation, which is expected to happen in June 2024. In the meantime, we are continuing to promote the development of our AI cloud service and ASIC mining machine projects, which are currently proceeding smoothly.”

The Company primarily operates 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.

Operations Update

Metrics	April 2024	March 2024	April 2023
Total hash rate under management1 (EH/s)	22.3	22.5	18.3
- Proprietary hash rate2	8.4	8.4	5.6
• Self-mining	6.7	6.7	4.0
• Cloud Hash Rate	1.7	1.7	1.6
- Hosting	13.9	14.1	12.7
Mining machines under management	224,000	226,000	196,000
- Self-owned3	86,000	86,000	66,000
- Hosted	138,000	140,000	130,000
Aggregate electrical capacity4 (MW)	895	895	795
Bitcoin mined (self-mining only)5	265	294	233

¹ Total hash rate under management as of April 30, 2024 across the Company’s primary business lines: Self-mining, Cloud Hash Rate, and Hosting.

² Proprietary hash rate as of April 30, 2024 was 8.4 EH/s, equivalent to proprietary hash rate as of March 31, 2024.

³ Self-owned mining machines are for the Company’s self-mining business and Cloud Hash Rate business.

⁴ Aggregate electrical capacity remained steady, totaling 895MW across six mining datacenters as of April 30, 2024.

⁵ Bitcoin mined in April 2024 increased by 13.7% compared to April 2023. Bitcoin mined in April 2024 declined by 9.9% compared to March 2024, primarily as a result of the impacts of the Bitcoin “halving” event that occurred in April 2024. Currently, the Company promptly converts the cryptocurrencies it obtains into fiat currency. 

Infrastructure Update
The Company has continued to make progress in the construction of a 175MW immersion cooling datacenter at its mining facility in Tydal, Norway (the “Tydal Datacenter”). The expansion of the Tydal Datacenter is expected to be completed in mid-2025.

The Company has continued to make progress in the construction of a 221MW datacenter in Ohio, United States (the “Ohio Datacenter”). The land and power resources required for the Ohio Datacenter were secured during 2023. Construction of the Ohio Datacenter is expected to be completed in 2025.

The Company has made progress in the construction of a 500MW datacenter in Jigmeling, Bhutan (the “Jigmeling Datacenter”), which began construction in March 2024. Around 70% of the ground leveling work for the project substation area has been completed to date, and is expected to be fully completed by the end of May 2024. Ground leveling work for the mining datacenter area had commenced as of the beginning of May 2024. The Company has also confirmed its plan to procure the substation’s electrical equipment with a supplier, and expects that such equipment will be purchased by June 2024. The Jigmeling Datacenter is expected to be completed in mid-2025.

Manufacturing Update
The Company’s mining machines project is progressing as planned. As of now, all laboratory testing and preparations for batch production have been completed. The Company will conduct small batch trial production in May and June 2024. The mining machines produced during the trial production will be delivered to the Company’s own mining datacenters for stability testing.

Conference Schedule
The Company will be attending B. Riley Securities 24th Annual Institutional Investor Conference in Beverly Hills, California from May 22-23, 2024.

The Company will be attending Consensus 2024 in Austin, Texas from May 29-June 1, 2024.

About Bitdeer Technologies Group

Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive computing solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations. The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, visit https://ir.bitdeer.com/ or follow Bitdeer on X @ BitdeerOfficial and LinkedIn @ Bitdeer Group.

Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social media and other communication channels listed on its website.

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.

Contacts

Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825

Public Relations
Brad Burgess, SVP
ICR, LLC
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056

 

FAQ

How many Bitcoins did Bitdeer mine in April 2024?

Bitdeer mined 265 Bitcoins in April 2024, a 13.7% increase from the same period last year.

What caused the decline in Bitcoin mined in April 2024 compared to March 2024?

The decline in Bitcoin mined in April 2024 was due to the impact of the Bitcoin halving event that occurred on April 19, 2024.

When is the Jigmeling Datacenter in Bhutan expected to be completed?

The Jigmeling Datacenter in Bhutan is expected to be completed in mid-2025.

Which conferences will Bitdeer Technologies Group attend in May 2024?

Bitdeer Technologies Group will attend the B. Riley Securities 24th Annual Institutional Investor Conference in Beverly Hills, California from May 22-23, 2024, and Consensus 2024 in Austin, Texas from May 29-June 1, 2024.