Bitdeer Reports Financial Results for the Full Year 2023 and Operational Update
- Revenue increased to US$368.6 million in 2023 compared to US$333.3 million in 2022.
- Net loss was US$56.7 million in 2023, compared to US$60.4 million in 2022.
- Adjusted profit was US$22.0 million in 2023, down from US$30.3 million in 2022.
- Adjusted EBITDA reached US$100.3 million in 2023, up from US$93.2 million in 2022.
- Cash and cash equivalents stood at US$144.7 million as of December 31, 2023.
- Bitdeer mined 3,694 Bitcoins in 2023, a 74.8% increase from 2022.
- The company tested its first Bitcoin mining chip, SEAL01, for improved efficiency.
- Bitdeer completed deployment of NVIDIA DGX SuperPOD H100 system ahead of schedule.
- A hash rate expansion plan of 3.4 EH/s was announced for self-mining expansion in 2024.
- Net loss in 2023 was impacted by share-based payment expenses and listing fees.
- Cloud Hash Rate revenue decreased in 2023 compared to 2022.
- Gross profit margin decreased to 21.1% in 2023 from 25.0% in 2022.
- Cost of revenue increased to US$290.7 million in 2023 from US$250.1 million in 2022.
Insights
Examining Bitdeer Technologies Group's financial results, a key takeaway is the 10.6% revenue growth year-over-year, indicating the company's resilience in a volatile cryptocurrency market. Despite the net loss, the reduced magnitude compared to the previous year and the increase in adjusted EBITDA suggest improved operational efficiency. The strategic move into ASIC production with the SEAL01 chip could disrupt the competitive landscape by potentially reducing costs and dependency on third-party suppliers.
However, the decrease in adjusted profit raises questions about the sustainability of growth and the effectiveness of current strategies. The expansion of datacenter operations and the deployment of the NVIDIA DGX SuperPOD H100 system indicate a diversification strategy that could hedge against cryptocurrency market fluctuations. Investors should monitor the company's ability to manage the high operational costs associated with their expansion and technological advancements.
From a financial perspective, the reported net loss and the decline in adjusted profit highlight the challenges Bitdeer faces in balancing growth investments with profitability. The significant share-based payment expenses and listing fee are noteworthy as they represent non-recurring costs that could skew the interpretation of the company's true operational performance. The increase in gross margin is commendable, but the drop in cash reserves from the previous year signals heavy investment and potential liquidity constraints.
The company's debt level, with total borrowings of US$22.6 million, appears manageable given the current cash position. However, the future cash flow implications of the ongoing datacenter construction and mining machine purchases warrant close scrutiny. The company's future financial health will hinge on its ability to convert its technological advancements and operational expansions into profitable growth post-halving.
Bitdeer's foray into ASIC chip production and the significant increase in Bitcoin mined reflect a strategic pivot towards vertical integration and operational control. The ASIC market is highly specialized and the successful development of the SEAL01 chip could provide Bitdeer with a competitive edge in cost and performance. The anticipated hash rate under management growth to 46 EH/s by 2025 is an ambitious target that, if achieved, could substantially increase the company's market share in Bitcoin mining.
The company's proactive approach to the upcoming Bitcoin halving event, where the reward for mining new blocks is halved, thereby reducing the rate at which new bitcoins are generated, is important for maintaining profitability. By diversifying into high-performance computing services with the NVIDIA DGX SuperPOD H100 system, Bitdeer is also tapping into the growing demand for AI and machine learning capabilities, potentially opening up new revenue streams.
SINGAPORE, March 29, 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 financial results for the year ended December 31, 2023.
Full Year 2023 Financial Highlights
- Total revenue was US
$368.6 million , compared to US$333.3 million in 2022. - Net loss was US
$56.7 million , compared to US$60.4 million in 2022. - Adjusted profit was US
$22.0 million , compared to US$30.3 million in 2022. - Adjusted EBITDA was US
$100.3 million , compared to US$93.2 million in 2022. - Cash and cash equivalents were US
$144.7 million as of December 31, 2023.
Linghui Kong, Chief Business Officer of Bitdeer, commented, “We continued to successfully execute on our operational strategies during 2023, as we mined 3,694 Bitcoins, representing a
The majority of the Company’s revenue is derived from its 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.
Financial Highlights
- Total revenue was US
$368.6 million in 2023, compared to US$333.3 million in 2022, primarily due to the increase in revenue generated from the Company’s self-mining business as a result of the increased self-mining hash rate and increased Bitcoin production. The Company’s increased hosting capacity also led to an increase in revenue generated from hosting services. These increases were partially offset by a decrease in revenue generated from Cloud Hash Rate. - Net loss was US
$56.7 million in 2023, compared to a net loss of US$60.4 million in 2022. Net loss in the full year of 2023 was primarily caused by share-based payment expenses of US$45.5 million and the listing fee of US$33.2M related to the completed transaction with Blue Safari Group Acquisition Corp. - Adjusted profit was US
$22.0 million in 2023, compared to US$30.3 million in 2022. Adjusted profit/(loss) 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 profit/(loss) adjusted to exclude the listing fee and share-based payment expenses under IFRS 2. - Adjusted EBITDA was US
$100.3 million in 2023, compared to US$93.2 million in 2022. 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. - Cash and cash equivalents were US
$144.7 million as of December 31, 2023. - Total Borrowings were US
$22.6 million as of December 31, 2023.
Operational Highlights
| Metrics | Years Ended December 31, | |
| 2023 | 2022 | |
| Total hash rate under management (EH/s) | 21.0 | 14.0 |
| - Proprietary hash rate | 8.4 | 4.1 |
| • Self-mining | 6.7 | 2.5 |
| • Cloud Hash Rate | 1.7 | 1.6 |
| - Hosting | 12.6 | 9.9 |
| Mining machines under management | 215,000 | 152,000 |
| - Self-owned | 86,000 | 50,000 |
| - Hosted | 129,000 | 102,000 |
| Aggregate electrical capacity (MW) | 895 | 775 |
| Bitcoin mined (self-mining only) | 3,694 | 2,113 |
- Total hash rate under management, which consists of proprietary hash rate and hosting hash rate, was 21.0 EH/s as of December 31, 2023.
- Proprietary hash rate was 8.4 EH/s as of December 31, 2023, with 6.7 EH/s allocated to the Company’s self-mining business and 1.7 EH/s to its Cloud Hash Rate business.
- Hosting hash rate was 12.6 EH/s as of December 31, 2023.
- Self-mining business mined 3,694 Bitcoins in the full year of 2023, representing a
74.8% increase as compared to 2,113 Bitcoins in the full year of 2022, due to the increase in hash rate allocated to the Company’s self-mining business. The Company generally does not hold cryptocurrencies obtained through its self-mining business, and promptly converts them into fiat currency. - Mining machines under management was approximately 215,000 ASIC mining machines as of December 31, 2023.
Self-owned mining machines for the Company’s self-mining business and Cloud Hash Rate business increased to approximately 86,000, primarily due to the launch of the mining datacenter in Bhutan.
Hosted mining machines increased to approximately 129,000, primarily due to the expansion of the Company’s mining datacenter in North America, which provides more capacity to serve hosting customers. - Aggregate electrical capacity was 895MW across six mining datacenters as of December 31, 2023, representing a
15.5% increase from 775MW as of December 31, 2022. The Company also has another 175MW under construction in Norway as of December 31, 2023. The expansion to the Company’s Tydal mining facility in Norway is expected to be completed in 2025. - Total power usage was approximately 4,673,000 MWH across the Company’s six mining datacenters in the full year of 2023.
- Average cost of electricity was approximately US
$38 /MWH in the full year of 2023. - Average miner efficiency was 31.7 J/TH as of December 31, 2023.
Financial Results
| Year Ended December 31, 2023 | ||||||||
| (US$’000) | ||||||||
| Business lines | Self-mining | Cloud Hash Rate | General Hosting | Membership Hosting | ||||
| Revenue | 111,683 | 67,881 | 97,321 | 79,906 | ||||
| Cost of revenue | ||||||||
| Including: | ||||||||
| - Electricity cost in operating mining machines | (52,259 | ) | (17,089 | ) | (54,581 | ) | (55,508 | ) |
| - Depreciation and share-based payment expenses | (29,164 | ) | (19,723 | ) | (13,198 | ) | (10,669 | ) |
| - Other cash costs | (8,365 | ) | (5,273 | ) | (7,552 | ) | (6,608 | ) |
| Total cost of revenue | (89,788 | ) | (42,085 | ) | (75,331 | ) | (72,785 | ) |
| Gross profit | 21,895 | 25,796 | 21,990 | 7,121 | ||||
| Year Ended December 31, 2022 | ||||||||
| (US$’000) | ||||||||
| Business lines | Self-mining | Cloud Hash Rate | General Hosting | Membership Hosting | ||||
| Revenue | 62,359 | 121,341 | 99,251 | 26,056 | ||||
| Cost of revenue | ||||||||
| Including: | ||||||||
| - Electricity cost in operating mining machines | (20,381 | ) | (23,299 | ) | (72,099 | ) | (20,344 | ) |
| - Depreciation and share-based payment expenses | (22,624 | ) | (30,812 | ) | (13,266 | ) | (3,482 | ) |
| - Other cash costs | (4,398 | ) | (8,557 | ) | (6,999 | ) | (3,118 | ) |
| Total cost of revenue | (47,403 | ) | (62,668 | ) | (92,364 | ) | (26,944 | ) |
| Gross profit / (loss) | 14,956 | 58,673 | 6,887 | (888 | ) | |||
Revenue
Total revenue was US
- Self-mining revenue was US
$111.7 million , compared to US$62.4 million in the full year of 2022, primarily due to the increase in self-mining hash rate from the Company’s 100MW Gedu mining datacenter in Bhutan that entered operations in the second half of 2023 and the appreciation of the Bitcoin price in the fourth quarter of 2023. - Cloud Hash Rate revenue was US
$67.9 million , compared to US$121.3 million in the full year of 2022, primarily due to changes in the amount of active Cloud Hash Rate orders. - General Hosting revenue was US
$97.3 million , compared to US$99.3 million in the full year of 2022, primarily because the average capacity of general hosting was modestly lower in the full year of 2023 compared to the full year of 2022. - Membership Hosting revenue was US
$79.9 million , compared to US$26.1 million in the full year of 2022, primarily due to revenue generated from the expansion of the Company’s mining datacenter in North America, which was delivered in the second half of 2022 and provides more capacity to serve hosting customers.
Cost of Revenue
Cost of revenue was US
Gross Profit
Gross profit was US
Operating Expenses
The sum of below operating expenses in the full year of 2023 was US
- Selling expenses were US
$8.2 million , compared to US$11.7 million in the full year of 2022, primarily due to decreases in share-based compensation to sales personnel. - General and administrative expenses were US
$66.5 million , compared to US$93.5 million in the full year of 2022, primarily due to decreases in share-based compensation to general and administrative personnel. - Research and development expenses were US
$29.5 million , compared to US$35.4 million in the full year of 2022, primarily due to decreases in share-based compensation to research and development personnel, partially offset by increases in salaries, wages, and other benefits caused by the increase in the number of research and development personnel, and increases in research and development technical service fees.
Net Loss
Net loss was US
Adjusted Profit (Non-IFRS)
Adjusted profit was US
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was US
Liquidity
As of December 31, 2023, the Company held US
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 the local economy.
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 as of March 1, 2024. In addition to his new role as Chief Executive Officer, Mr. Jihan Wu remains as Chairman of the Company’s Board. The Company’s then-current Chief Executive Officer Mr. Linghui Kong transitioned to the role of Chief Business Officer and continues to serve as a member of the Company’s Board, also effective as of March 1, 2024.
On March 4, 2024, the Company announced the successful testing of its first Bitcoin mining chip, the SEAL01. Powerfully efficient, SEAL01 is designed for integration into Bitdeer’s new SEALMINER A1 mining machines.
On March 18, 2024, the Company announced that it has completed the deployment and successful testing of its NVIDIA DGX SuperPOD H100 system ahead of schedule, becoming one of the first cloud service platforms in the Asian region to offer NVIDIA DGX SuperPOD H100 service.
On March 26, 2024, the Company announced a hash rate expansion plan of approximately 3.4 EH/s as a first step in its plan to expand its self-mining. The Company intends to install its own SEALMINER A1 miners at its mining datacenters in Rockdale, Texas, United States, and in Norway by the end of 2024 to accomplish this initial expansion.
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, please visit https://www.bitdeer.com/ or follow Bitdeer on X, formerly known as Twitter, @ BitdeerOfficial, Facebook @Bitdeer 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.
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 loss for the relevant years to adjusted EBITDA and adjusted profit, for the years ended December 31, 2023 and 2022.
| Years ended December 31, | ||||||
| 2023 | 2022 | |||||
| US$ | US$ | |||||
| (in thousands) | ||||||
| Adjusted EBITDA | ||||||
| Loss for the year | (56,656 | ) | (60,366 | ) | ||
| Add： | ||||||
| Depreciation and amortization | 75,541 | 66,424 | ||||
| Income tax (benefit) / expenses | 5,685 | (4,400 | ) | |||
| Interest (income)/ expense, net | (2,872 | ) | 912 | |||
| Listing fee | 33,151 | - | ||||
| Share-based payment expenses | 45,488 | 90,648 | ||||
| Total of Adjusted EBITDA | 100,337 | 93,218 | ||||
| Adjusted Profit | ||||||
| Loss for the year | (56,656 | ) | (60,366 | ) | ||
| Add： | ||||||
| Listing fee | 33,151 | - | ||||
| Share-based payment expenses | 45,488 | 90,648 | ||||
| Total of Adjusted Profit | 21,983 | 30,282 | ||||
Consolidated Statements of Financial Position
| As of December 31, | As of December 31, | |||||
| 2023 | 2022 | |||||
| US$ | US$ | |||||
| (in thousands) | ||||||
| ASSETS | ||||||
| Cash and cash equivalents | 144,729 | 231,362 | ||||
| Cryptocurrencies | 15,371 | 2,175 | ||||
| Trade receivables | 17,277 | 18,304 | ||||
| Amounts due from a related party | 187 | 397 | ||||
| Prepayments and other assets | 97,433 | 59,576 | ||||
| Financial asset at fair value through profit or loss | 37,775 | 60,959 | ||||
| Restricted cash | 9,538 | 11,494 | ||||
| Mining machines | 63,477 | 27,703 | ||||
| Right-of-use assets | 58,626 | 60,082 | ||||
| Property, plant and equipment | 154,860 | 138,636 | ||||
| Investment properties | 34,346 | 35,542 | ||||
| Intangible assets | 4,777 | 322 | ||||
| Deferred tax assets | 991 | 4,857 | ||||
| TOTAL ASSETS | 639,387 | 651,409 | ||||
| LIABILITIES | ||||||
| Trade payables | 32,484 | 15,768 | ||||
| Other payables and accruals | 32,151 | 22,176 | ||||
| Amounts due to a related party | 33 | 316 | ||||
| Income tax payables | 3,367 | 657 | ||||
| Deferred revenue | 144,337 | 182,297 | ||||
| Borrowings | 22,618 | 29,805 | ||||
| Lease liabilities | 70,211 | 70,425 | ||||
| Deferred tax liabilities | 1,620 | 11,626 | ||||
| TOTAL LIABILITIES | 306,821 | 333,070 | ||||
| NET ASSETS | 332,566 | 318,339 | ||||
| EQUITY | ||||||
| Share capital[1] | * | * | ||||
| Treasury shares | (2,604 | ) | - | |||
| Retained earnings / (accumulated deficit) | (49,853 | ) | 6,803 | |||
| Reserves[1] | 385,023 | 311,536 | ||||
| TOTAL EQUITY | 332,566 | 318,339 | ||||
_______________
* Amount less than US
[1] After giving the effects of the reverse recapitalization completed in April 2023.
Consolidated Statements of Operations and Comprehensive Loss
| Years ended December 31, | ||||||
| 2023 | 2022 | |||||
| US$ | US$ | |||||
| (in thousands) | ||||||
| Revenue | 368,554 | 333,342 | ||||
| Cost of revenue | (290,745 | ) | (250,090 | ) | ||
| Gross profit | 77,809 | 83,252 | ||||
| Selling expenses | (8,246 | ) | (11,683 | ) | ||
| General and administrative expenses | (66,454 | ) | (93,453 | ) | ||
| Research and development expenses | (29,534 | ) | (35,430 | ) | ||
| Listing fee | (33,151 | ) | - | |||
| Other operating income / (expenses) | 3,791 | (3,628 | ) | |||
| Other net gain | 3,538 | 357 | ||||
| Loss from operations | (52,247 | ) | (60,585 | ) | ||
| Finance income / (expenses) | 1,276 | (4,181 | ) | |||
| Loss before taxation | (50,971 | ) | (64,766 | ) | ||
| Income tax benefit / (expenses) | (5,685 | ) | 4,400 | |||
| Loss for the year | (56,656 | ) | (60,366 | ) | ||
| Other comprehensive loss | ||||||
| Loss for the year | (56,656 | ) | (60,366 | ) | ||
| Other comprehensive loss for the year | ||||||
| Item that may be reclassified to profit or loss | ||||||
| - Exchange differences on translation of financial statements | (26 | ) | (22 | ) | ||
| Other comprehensive loss for the year, net of tax | (26 | ) | (22 | ) | ||
| Total comprehensive loss for the year | (56,682 | ) | (60,388 | ) | ||
| Loss per share[1] | ||||||
| Basic | (0.51 | ) | (0.56 | ) | ||
| Diluted | (0.51 | ) | (0.56 | ) | ||
| Weighted average number of shares outstanding (thousand shares)[1] | ||||||
| Basic | 110,494 | 108,681 | ||||
| Diluted | 110,494 | 108,681 | ||||
_________________
[1] After giving the effects of the reverse recapitalization completed in April 2023.
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's total revenue for 2023?
What was the net loss for Bitdeer in 2023?
How many Bitcoins did Bitdeer mine in 2023?
What new technology did Bitdeer test in 2024?
What expansion plan did Bitdeer announce in 2024?
