Bitdeer Pre-Announces Financial and Operating Results for the Fourth Quarter of 2023
- Significant increase in total revenue from Q4 2022 to Q4 2023, reaching approximately US$114.8 million.
- Self-mining revenue saw a substantial rise from US$10.6 million in Q4 2022 to US$46.9 million in Q4 2023.
- Adjusted EBITDA for Q4 2023 was in the range of US$32.1 million to US$38.1 million, a significant improvement from Q4 2022.
- Cash and cash equivalents amounted to approximately US$144.7 million as of December 31, 2023.
- Operational highlights included total Bitcoin mined, power usage, cost of electricity, and miner efficiency.
- Bitdeer plans to release its complete full-year 2023 financial results in March 2024.
- None.
Insights
The reported increase in total revenue to approximately US$114.8 million for Bitdeer Technologies Group represents a significant year-over-year growth when compared to Q4 2022's US$77.1 million. This growth is particularly notable in the self-mining revenue segment, which saw an increase from US$10.6 million in Q4 2022 to US$46.9 million in Q4 2023. However, cloud hash rate revenue has decreased from US$19.8 million to US$16.3 million in the same period, indicating a potential shift in the company's revenue streams or market dynamics.
Adjusted EBITDA figures show more than a doubling from US$16.3 million to a range of US$32.1 million to US$38.1 million, suggesting improved operational efficiency or cost management. However, a decrease in cash and cash equivalents from US$231.4 million to US$144.7 million could raise questions about the company's liquidity and cash flow management. These financial metrics are critical for investors who are assessing the company's financial health and future growth prospects.
Bitdeer's operational highlights, such as the total Bitcoin mined and average cost of electricity, provide insights into the operational scale and cost-efficiency of the company's mining operations. The reported average miner efficiency of approximately 31.7 J/TH is an indicator of the technological competitiveness of the company's mining hardware. The increase in total Bitcoin mined, along with improved efficiency, could signal a strengthening position in the blockchain and high-performance computing industry.
It is also important to consider the broader context of the cryptocurrency market, including Bitcoin's price volatility and regulatory changes, which can have significant impacts on the profitability and sustainability of mining operations. The decrease in cloud hash rate revenue might reflect market saturation or competitive pressures, which could have strategic implications for the company's focus and investment in different business lines.
The energy consumption and costs are critical factors in the blockchain mining industry. Bitdeer's average electricity cost of US$44/MWH is a key performance indicator, as energy costs can be one of the largest expenses for mining companies. The reported total power usage of approximately 1,336,000 MWH across six mining datacenters implies a substantial scale of operations. Investors and analysts should monitor these figures closely, as fluctuations in energy prices can significantly affect the company's cost structure and profitability.
Additionally, the energy efficiency of mining operations, as reflected in the miner efficiency figure, is increasingly important in the context of environmental sustainability and potential regulatory scrutiny. Companies that can achieve high levels of efficiency may be better positioned to manage costs and mitigate environmental concerns.
SINGAPORE, March 04, 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 selected estimated unaudited preliminary financial and operating results for the fourth quarter ended December 31, 2023.
Unaudited and Preliminary Q4 2023 Financial Highlights
- Total revenue of approximately US
$114.8 million , compared to US$77.1 million in Q4 2022.- Self-mining revenue of approximately US
$46.9 million , compared to US$10.6 million in Q4 2022. - Cloud hash rate revenue of approximately US
$16.3 million , compared to US$19.8 million in Q4 2022. - General hosting revenue of approximately US
$25.2 million , compared to US$19.5 million in Q4 2022. - Membership hosting revenue of approximately US
$23.4 million , compared to US$21.4 million in Q4 2022.
- Self-mining revenue of approximately US
- Adjusted EBITDA (reconciled below)1 in the range of US
$32.1 million to US$38.1 million , compared to US$16.3 million in Q4 2022. - Cash and cash equivalents of approximately US
$144.7 million as of December 31, 2023, compared to US$231.4 million as of December 31, 2022.
Linghui Kong, Chief Business Officer of Bitdeer, commented, “In line with our commitment to providing investors with more timely access to Bitdeer’s performance in the fourth quarter of 2023, we are proactively sharing selected preliminary financial and operational results prior to our audited year end 2023 financial reports, which we currently expect to release towards the end of March 2024.”
Preliminary Q4 2023 Operational Highlights
- Total shares outstanding of 111,966,634 ordinary shares as of December 31, 2023 (excluding 606,756 class A ordinary shares that have been repurchased but not cancelled and 5,436,049 class A ordinary shares reserved for future issuances upon the exercise of awards granted under our share incentive plans), including 63,566,712 class A ordinary shares and 48,399,922 class V ordinary shares.
- Total Bitcoin mined (self-mining only) of approximately 1,299.
- Total power usage of approximately 1,336,000 MWH across the Company’s six mining datacenters in the fourth quarter of 2023.
- Average cost of electricity of approximately US
$44 /MWH in the fourth quarter of 2023. - Average miner efficiency of approximately 31.7 J/TH as of December 31, 2023.
___________________________________________
1 Adjusted EBITDA is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude the listing fee and share-based payment expenses under IFRS 2.
Unaudited and Preliminary Financial Results
| Three Months Ended December 31, 2023 | ||||||||
| (US$’000) | ||||||||
| Business lines | Self- mining | Cloud Hash Rate | General Hosting | Membership Hosting | ||||
| Revenue | 46,864 | 16,267 | 25,193 | 23,431 | ||||
| Cost of revenue | ||||||||
| Including: | ||||||||
| - Electricity cost in operating mining machines | (20,332 | ) | (4,332 | ) | (16,079 | ) | (17,202 | ) |
| - Depreciation and share-based payment expenses | (9,681 | ) | (3,800 | ) | (2,589 | ) | (2,409 | ) |
| - Others cash costs | (2,972 | ) | (1,031 | ) | (1,597 | ) | (1,608 | ) |
| Total cost of revenue | (32,985 | ) | (9,163 | ) | (20,265 | ) | (21,219 | ) |
| Gross profit | 13,879 | 7,104 | 4,928 | 2,212 | ||||
| Three Months Ended December 31, 2022 | ||||||||
| (US$’000) | ||||||||
| Business lines | Self- mining | Cloud Hash Rate | General Hosting | Membership Hosting | ||||
| Revenue | 10,557 | 19,812 | 19,512 | 21,352 | ||||
| Cost of revenue | ||||||||
| Including: | ||||||||
| - Electricity cost in operating mining machines | (6,144 | ) | (2,820 | ) | (12,750 | ) | (15,999 | ) |
| - Depreciation and share-based payment expenses | (6,373 | ) | (5,762 | ) | (3,372 | ) | (2,899 | ) |
| - Others cash costs | (976 | ) | (1,849 | ) | (1,731 | ) | (2,482 | ) |
| Total cost of revenue | (13,493 | ) | (10,431 | ) | (17,853 | ) | (21,380 | ) |
| Gross profit / (loss) | (2,936 | ) | 9,381 | 1,659 | (28 | ) | ||
The preliminary financial information presented in this press release has not been audited and is subject to potential adjustments that may be identified during the Company’s year-end audit. The Company will not refer back to the above unaudited preliminary numbers in its future periodic reports filed under the Exchange Act. The Company expects to release its complete full-year 2023 financial results during March 2024.
Preliminary Financial and Operating Results
The preliminary financial and operating results set forth above for the three months ended December 31, 2023, reflect preliminary estimates with respect to such results based solely on currently available information, which is subject to change. Readers are cautioned not to place undue reliance on such preliminary results which are unaudited and constitute forward-looking statements. Bitdeer has not completed its standard closing process, including the completion of all of its controls procedures, which could identify adjustments causing the actual results to be different from the expectations presented in this release. These estimates should not be viewed as a substitute for Bitdeer’s full quarterly financial statements for the three months ended December 31, 2023, which will be prepared in accordance with International Financial Reporting Standards (IFRS).
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, including the Company’s unaudited preliminary financial information for the fourth quarter ended December 31, 2023, 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. There can be no assurance that the estimated preliminary financial data or the expected commercial operations profitability in 2023 will be realized, and you are cautioned not to place undue reliance on the preliminary financial information, which reflects management’s current expectations and anticipated results of operations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. The preliminary financial data described in this press release will be adjusted based on the Company’s completion of year-end financial close processes. 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.
Use of Non-IFRS Financial Measures
In evaluating the Company’s business, the Company considers and uses non-IFRS measures, Adjusted EBITDA and adjusted profit/(loss), as supplemental measures to review and assess its operating performance. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude the listing fee and share-based payment expenses under IFRS 2, and defines adjusted profit/(loss) as profit/(loss) adjusted to exclude the listing fee and share-based payment expenses under IFRS 2. The Company presents these non-IFRS financial measures because they are used by its management to evaluate its operating performance and formulate business plans. The Company also believes that the use of these non-IFRS measures facilitate investors’ assessment of its operating performance. These measures are not necessarily comparable to similarly titled measures used by other companies. As a result, investors should not consider these measures in isolation from, or as a substitute analysis for, the Company’s loss for the periods, as determined in accordance with IFRS.
The Company compensates for these limitations by reconciling these non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating its performance. The Company encourages investors to review its financial information in its entirety and not rely on a single financial measure.
The following table presents a reconciliation of expected loss for the relevant period to expected Adjusted EBITDA (unaudited and preliminary), for the three months ended December 31, 2023 and 2022. The reconciliation of the fourth quarter ended December 31, 2023 expected results is to the midpoint of the range.
| Three Months Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| US$ | US$ | |||||||
| (in thousands) | ||||||||
| Adjusted EBITDA | ||||||||
| Loss for the periods | (5,031 | ) | (13,035 | ) | ||||
| Add： | ||||||||
| Depreciation and amortization | 19,654 | 18,680 | ||||||
| Income tax (benefit) / expenses | 9,950 | (7,093 | ) | |||||
| Interest income, net | (753 | ) | (425 | ) | ||||
| Share-based payment expenses | 11,322 | 18,198 | ||||||
| Total of Adjusted EBITDA | 35,142 | 16,325 | ||||||
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
What was Bitdeer Technologies Group's total revenue for Q4 2023?
How did self-mining revenue compare between Q4 2022 and Q4 2023?
What was the range of Adjusted EBITDA for Bitdeer Technologies Group in Q4 2023?
How much cash and cash equivalents did Bitdeer Technologies Group have as of December 31, 2023?
When does Bitdeer Technologies Group plan to release its complete full-year 2023 financial results?
