Bitdeer Announces January 2024 Operations Updates
- 123.0% increase in Bitcoin mining in January 2024 compared to the same period last year
- Continued progress in the construction of a 175MW immersion cooling datacenter in Norway
- Appointment of Mr. Jihan Wu as the new Chief Executive Officer effective March 1, 2024
- Month-over-month production declined due to lower average transaction fees and curtailments at the datacenter in Bhutan
- The company generally does not hold cryptocurrencies obtained through its self-mining business
Insights
The reported increase in Bitcoin mining by Bitdeer Technologies Group reflects a significant year-over-year growth, which is a strong indicator of the company's operational expansion and efficiency improvements. However, the month-over-month decline due to seasonal electricity cost increases and lower transaction fees indicates vulnerability to external market conditions. Investors should consider the potential volatility in cryptocurrency mining profitability and the company's strategies to mitigate these risks, such as securing fixed-price electricity contracts.
Further expansion plans, including the construction of new datacenters in Ohio and Norway, demonstrate Bitdeer's commitment to long-term growth. These projects are likely to increase the company's total hash rate and mining capacity, potentially leading to greater market share in the blockchain and high-performance computing sectors. Investors should monitor the progress of these initiatives as they could have significant implications for future revenue streams and competitive positioning within the industry.
Bitdeer's financial performance can be partially inferred from the prompt conversion of mined cryptocurrency into fiat currency. This practice may protect the company from the volatility of cryptocurrency prices, but it also limits potential gains from holding appreciating digital assets. The financial implications of this strategy should be assessed in the context of the company's overall risk management approach and its impact on cash flow.
Investors should also consider the capital expenditures associated with the company's infrastructure expansion, as these projects require significant investment. The successful deployment of capital into these initiatives could enhance long-term shareholder value, but it also carries execution risk. The completion of these projects in 2025 will likely be a critical milestone for evaluating the company's return on investment and operational scalability.
The steady hash rate and the increase in proprietary mining capacity suggest that Bitdeer is maintaining its technological competitiveness in the blockchain sector. The immersion cooling technology being implemented in the Tydal Datacenter is a cutting-edge approach that can significantly increase mining efficiency by reducing thermal throttling and energy consumption. This could position Bitdeer favorably as the industry moves towards more sustainable and energy-efficient mining practices.
Additionally, the involvement in AI cloud services with the NVIDIA DGX H100-powered SuperPOD indicates diversification into high-performance computing services beyond cryptocurrency mining. This could open new revenue streams and reduce dependence on the volatile crypto market. The launch of the SuperPOD-based platform in the first quarter of 2024 is a near-term event that could have significant implications for the company's growth trajectory and investor sentiment.
SINGAPORE, Feb. 06, 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 January 2024.
Linghui Kong, Chief Executive Officer of Bitdeer, commented, “During January, we made important progress towards building for the future while delivering solid results in our core business. We mined 330 Bitcoins in total in January, an increase of
“Meanwhile, we continued to reach tangible milestones for our long-term growth plans. On the AI cloud service front, our NVIDIA DGX H100-powered SuperPOD is currently undergoing setup and validation with NVIDIA and digital tech firm PTC. We remain on schedule, and expect to launch our SuperPOD-based high-performance cloud service platform during the first quarter of 2024. Looking ahead, we will remain focused on creating sustainable value for our shareholders and exploring emerging strategic growth opportunities.”
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 | January 2024 | December 2023 | January 2023 |
| Total hash rate under management1 (EH/s) | 21.0 | 21.0 | 16.2 |
| - Proprietary hash rate2 | 8.4 | 8.4 | 4.1 |
| • Self-mining | 6.7 | 6.7 | 2.5 |
| • Cloud Hash Rate | 1.7 | 1.7 | 1.6 |
| - Hosting | 12.6 | 12.6 | 12.1 |
| Mining machines under management | 214,000 | 215,000 | 175,000 |
| - Self-owned3 | 86,000 | 86,000 | 51,000 |
| - Hosted | 128,000 | 129,000 | 124,000 |
| Aggregate electrical capacity4 (MW) | 895 | 895 | 775 |
| Bitcoin mined (self-mining only)5 | 330 | 434 | 148 |
1 Total hash rate under management as of January 31, 2024 across the Company’s primary business lines: Self-mining, Cloud Hash Rate, and Hosting.
2 Proprietary hash rate as of January 31, 2024 was 8.4 EH/s, equivalent to proprietary hash rate as of December 31, 2023.
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 January 31, 2024.
5 Bitcoin mined in January 2024 increased by
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 expects to commence land preparation for the construction of a 221MW datacenter in Ohio, United States (the “Ohio Datacenter”) during February 2024. The land and power resources required for the Ohio Datacenter had been secured during 2023. Construction of the Ohio Datacenter is expected to be completed in 2025.
Recent Developments
On January 24, 2024, the Company announced that it had been named as one of Singapore’s Fastest Growing Companies 2024. The annual ranking is conducted by The Straits Times and Statista and recognizes a wide range of firms notable for rapid growth and commitment to Singapore's local economy. Bitdeer is also the first blockchain company in Singapore to receive the honor, ranked 6th of 18 companies in the IT & Software category and 34th of 100 overall of Singapore’s Fastest Growing Companies 2024.
On January 29, 2024, the Company announced the appointment of Mr. Jihan Wu, the Company’s Founder and Chairman of its Board of Directors (the “Board”), as Chief Executive Officer of the Company, effective on March 1, 2024. In addition to his new role as Chief Executive Officer, Mr. Jihan Wu will remain as Chairman of the Company’s Board. The Company’s current Chief Executive Officer Mr. Linghui Kong will transition to the role of Chief Business Officer and will continue to serve as a member of the Company’s Board, also effective on March 1, 2024.
Conference Schedule
The Company will take part in a fireside chat hosted by H.C. Wainwright on February 7, 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/.
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 much did Bitdeer's Bitcoin mining increase in January 2024 compared to January 2023?
What caused the decline in month-over-month production for Bitdeer in January 2024?
What infrastructure projects is Bitdeer working on?
Who was appointed as the new Chief Executive Officer of Bitdeer?
