Bitdeer Technologies Group (NASDAQ: BTDR) Q3 Earnings Highlights: Net Loss Slashed, Gross Profit And Gross Margin Up

Rhea-AI Summary

Bitdeer Technologies Group (NASDAQ:BTDR) reported strong financial performance in Q3 2023, with revenue growth, net loss reduction, and gross profit increase. The company's third-quarter revenue was $87.3 million, marking a 14% year-over-year increase. Bitdeer's net loss reduced to $1.8 million from $22.1 million in Q3 2022, and its gross profit for the quarter was $21.1 million with a gross margin of 24.2%. Adjusted profit stood at $10.5 million, and adjusted earnings rose to $28 million, a 221% increase from the same period last year. Bitdeer's operational achievements included reaching a total hash rate of 21.2 exahash per second (EH/s) and mining 1,085 Bitcoins in Q3 2023. The company also made strategic partnerships, positioning itself for future growth with the launch of Bitdeer AI Cloud, powered by the NVIDIA DGX SuperPod with DGX H100 systems.

Positive

• Revenue growth of 14% year-over-year
• Net loss reduction from $22.1 million to $1.8 million in Q3 2023
• Gross profit increase to $21.1 million with a gross margin of 24.2%
• Adjusted profit of $10.5 million, and adjusted earnings of $28 million, a 221% increase
• Total hash rate of 21.2 exahash per second (EH/s) and mining 1,085 Bitcoins in Q3 2023
• Strategic partnerships with NVIDIA for the launch of Bitdeer AI Cloud

Negative

• None.

Insights

Financial Analyst

Bitdeer Technologies Group's financial performance in Q3 2023 reflects a notable uptick in revenue growth and a substantial decrease in net loss, which are critical indicators of the company's improving financial health. The reported 14% year-over-year revenue increase, coupled with a significant reduction in net loss from $22.1 million to $1.8 million, suggests that the company's strategic initiatives are yielding positive results. Moreover, the gross margin improvement from 4.6% to 24.2% is a strong signal of enhanced operational efficiency, likely driven by the reduction in electricity costs and share-based payment expenses, which are substantial in the blockchain and computing industry.

When comparing Bitdeer's performance to that of Riot Platforms, Inc., it is evident that Bitdeer has outpaced its competitor in terms of revenue growth and net loss reduction. However, Riot's massive increase in adjusted EBITDA by over 600% indicates a potentially more substantial improvement in operational effectiveness. This disparity warrants attention from investors, as it may reflect differing strategic approaches or market positions.

Bitdeer's hash rate growth and Bitcoin production are also noteworthy. The total hash rate under management and the number of Bitcoins mined demonstrate the company's capacity to scale operations effectively. The expansion of hosting capacity and the construction of new data centers further indicate that Bitdeer is investing in infrastructure to support continued growth.

Market Research Analyst

Bitdeer's strategic positioning through partnerships, such as becoming a Preferred Cloud Service Provider in the NVIDIA Corporation Partner Network and the upcoming launch of Bitdeer AI Cloud, is indicative of its ambition to capture a larger share of the high-performance computing market. The use of the NVIDIA DGX SuperPod with DGX H100 systems for its AI Cloud service signals an investment in cutting-edge technology, likely to appeal to a broad range of clients in need of powerful computing resources.

The company’s expansion into new regions with additional data center capacity, including its first data center in Asia, demonstrates a commitment to global expansion and diversification of its service offerings. This geographical expansion is a strategic move that can potentially reduce the risk associated with regional market volatility and regulatory changes, particularly important in the blockchain industry.

Overall, Bitdeer's Q3 performance and strategic initiatives suggest a company that is not only recovering from past losses but also positioning itself for future growth in a highly competitive and evolving market. The focus on both technological advancement and operational efficiency could enhance its appeal to investors looking for companies with a clear path to profitability and innovation.

Cryptocurrency Expert

The operational achievements of Bitdeer, particularly in Bitcoin mining, are significant within the context of the cryptocurrency market. The increase in self-mining capacity to 21.2 EH/s and the production of 1,085 Bitcoins in Q3 2023 represent substantial growth in a market where the hash rate is a critical measure of mining power and potential revenue. The company's ability to mine a considerable number of Bitcoins while the industry continues to face challenges such as price volatility and increased regulatory scrutiny is an impressive feat.

Moreover, the strategic decision to evaluate the allocation of hash rate among different business lines indicates an adaptive approach to maximize profitability in a sector where the efficient use of resources is paramount. The company's focus on operational efficiency, particularly in managing electricity costs—which are a significant expense in mining operations—can be a major competitive advantage in controlling operational costs and improving profit margins.

As the blockchain industry continues to mature, Bitdeer's emphasis on diversification through its hosting and cloud hash rate services, in addition to self-mining, could provide a buffer against the inherent risks of cryptocurrency market fluctuations. This balanced approach may be beneficial for the company's long-term stability and attractiveness to investors who are cautious about the volatility of the crypto sector.

SINGAPORE / ACCESSWIRE / December 29, 2023 / Bitdeer Technologies Group (NASDAQ:BTDR), a global leader in blockchain and high-performance computing, recently announced its unaudited financial results for the third quarter of 2023. The report provides a thorough analysis of the company's financial and operational performance as well as insights into its current position in the technology market.

Financial Highlights

Bitdeer's financial performance in Q3 2023 showcased improvements in revenue and profitability.

Revenue Growth

Bitdeer reported third-quarter revenue of $87.3 million, a 14% year-over-year increase from $76.6 million in the same period last year. This growth was largely driven by the expansion of Bitdeer's increased hosting capacity and self-mining business, which grew 122% year-over-year.

Net Loss Reduction And Gross Profit Increase

Bitdeer showed a significant reduction in its net loss, down to $1.8 million in Q3 2023 from $22.1 million in the third quarter of 2022. Additionally, the company's total cost of revenue was $66.2 million, a decline from $73 million in 2022. These improvements were primarily due to lower share-based payment expenses and electricity costs compared to the previous year.

Bitdeer's gross profit for the quarter was $21.1 million, with a healthy gross margin of 24.2%. This marked a significant improvement over 2022's figures of $3.5 million and 4.6%, respectively.

Adjusted Profit And EBITDA

Bitdeer's adjusted profit for the quarter stood at $10.5 million, a positive improvement from its adjusted loss of $4.1 million in the third quarter of 2022. Its adjusted earnings also saw a rise to $28 million, an increase of more than 221% from $8.7 million in the same period last year.

Peer Comparison

To put Bitdeer's financial results into context, here are the Q3 highlights for competitor Riot Platforms, Inc (RIOT):

• Total Revenue: Riot's total revenue from the third quarter was $51.9 million, a 12.0% increase from $46.3 million in the same period in 2022.
• Net Loss: Riot reported a loss of $45.3 million or $0.25 per share, a 39.8% increase from the $32.4 million or $0.21 per share in the same period in 2022.
• Adjusted EBITDA: Riot reported $31.6 million in adjusted EBITDA, a more than 600% increase compared to the $4.3 million in the same period in 2022.
• Hash Rate Growth: Riot expects a total self-mining hash rate capacity of 12.5 exahash per second (EH/s) in Q4 2023. By mid-2024, the total self-mining hash rate capacity is expected to reach 20.2 EH/s.
• Bitcoin Production: Riot mined 1,106 Bitcoin during the quarter, a 6.1% increase from the 1,042 Bitcoin mined in the same period in 2022.

Operational Highlights

Bitdeer's operational achievements in Q3 2023 further underscored its commitment to technological innovation and expansion, key drivers of its market position.

The total hash rate under Bitdeer's management reached 21.2 exahash per second (EH/s) as of September 30. The self-mining business also mined 1,085 Bitcoins in the third quarter, a significant increase from the 490 Bitcoins it mined in the same period last year.

Bitdeer also increased its aggregate electrical capacity to 895 MW across six data centers, with an additional 175 MW under construction in Norway. Its first data center in Asia also entered full operations, adding 100MW to its electrical capacity and underscoring the company's commitment to and success in its global expansion.

Other Developments

Bitdeer also reported making strides through a new partnership with one of Wall Street's darlings with its soon-to-be-launched Bitdeer AI Cloud.

Bitdeer is positioning itself for future growth with strategic partnerships, including becoming a Preferred Cloud Service Provider in the NVIDIA Corporation Partner Network. Consistent with that partnership, the company is expanding its offerings with the launch of Bitdeer AI Cloud early next year, one of the first cloud services in Asia powered by the NVIDIA DGX SuperPod with DGX H100 systems.

Bitdeer's Path Forward

Overall, Bitdeer Technologies Group's third-quarter results indicate a growing position in the Bitcoin mining, cloud computing and high-performance computing industries. On the Bitcoin mining front, the company stated that it will continue to evaluate the allocation of hash rate between its three distinct business lines (self-mining, cloud hash rate and hosting) in order to further maximize profitability and shareholder value.

The company's focus on operational efficiency, revenue growth, technological advancement and strategic expansion with partners like NVIDIA further suggests a potentially promising future as it continues to grow and widen the scope of its offerings.

Featured photo by Alexander Schimmeck from Unsplash.

Contact:

Robin Yang
Bitdeer.ir@icrinc.com

SOURCE: Bitdeer Technologies Group

View the original press release on accesswire.com

FAQ

What is Bitdeer Technologies Group's ticker symbol?

Bitdeer Technologies Group's ticker symbol is NASDAQ:BTDR.

What was Bitdeer Technologies Group's third-quarter revenue in 2023?

Bitdeer Technologies Group reported third-quarter revenue of $87.3 million in 2023.

What was the percentage increase in Bitdeer Technologies Group's revenue from the same period last year?

Bitdeer Technologies Group's revenue increased by 14% year-over-year in Q3 2023.

What was Bitdeer Technologies Group's net loss in Q3 2023?

Bitdeer Technologies Group's net loss reduced to $1.8 million in Q3 2023 from $22.1 million in Q3 2022.

What was Bitdeer Technologies Group's gross profit in Q3 2023?

Bitdeer Technologies Group's gross profit for the quarter was $21.1 million with a gross margin of 24.2% in Q3 2023.

What was Bitdeer Technologies Group's adjusted profit in Q3 2023?

Bitdeer Technologies Group's adjusted profit for the quarter stood at $10.5 million in Q3 2023.

What was Bitdeer Technologies Group's total hash rate in Q3 2023?

Bitdeer Technologies Group's total hash rate reached 21.2 exahash per second (EH/s) in Q3 2023.

What strategic partnership did Bitdeer Technologies Group make for future growth?

Bitdeer Technologies Group made a strategic partnership with NVIDIA for the launch of Bitdeer AI Cloud, powered by the NVIDIA DGX SuperPod with DGX H100 systems.