According to PANews, Bitdeer, a well-known Bitcoin mining company, reported a net loss of $50.1 million for the third quarter of 2024. This represents a significant decline in total revenue, which fell to $62 million from $87.3 million in the same period last year. The company attributes this decline to several factors, including the expected Bitcoin price halving in April 2024, an increase in the global hash rate, lower hosting revenue, and higher research and development costs associated with the development of the SEAL02 chip.
The company’s gross profit saw a sharp decline, falling to $2.8 million from $21.1 million in the third quarter of 2023. Additionally, adjusted EBITDA shifted to negative $8.5 million from $28 million last year. Despite these financial setbacks, Bitdeer managed to increase its cash and cash equivalents to $291.3 million as of September 30, from $203.9 million in the previous quarter.
Operationally, Bitdeer saw a decline in its total managed hash rate, which fell to 17.1 EH/s from 21.2 EH/s in Q3 2023. This decline was primarily due to the conversion of 100 MW of hosting capacity at the Texas facility to water cooling for self-mining and the cessation of hosting of less efficient mining machines by some customers following the Bitcoin halving. Despite these challenges, self-mining revenue increased slightly from $30.1 million to $31.5 million, reflecting a 27.9% increase in the average self-mining hash rate to 7. 8 EH/s and an increase in Bitcoin prices during the quarter. However, the impact of the halving and the increase in global network hash rate did not fully offset the overall decline in sales.
Interview with Guest 1: Bitdeer’s Chief Financial Officer and Guest 2: Industry Expert on Cryptocurrency Mining
Editor: Good day to both of you. Thank you for taking the time to speak with us today about Bitdeer’s recent financial report. Let’s jump right in. Guest 1, could you please provide an overview of the reasons behind the notable decline in total revenue and gross profit for Bitdeer in Q3 2024?
Guest 1: Certainly, Editor. As mentioned in the article, the decline in total revenue was primarily due to a combination of factors such as the expected Bitcoin price halving in April 2024, an increase in the global hash rate, lower hosting revenue, and higher research and development costs associated with the development of our SEAL02 chip. These factors have had a significant impact on our operations, including a decline in sales and a corresponding decrease in gross profit. Despite these challenges, we remain committed to innovation and continue to invest in our own mining capabilities to improve our competitiveness in the market.
Editor: That’s interesting. Guest 2, from an industry perspective, how common are these challenges in the cryptocurrency mining sector, and how does Bitdeer’s performance compare to other major players?
Guest 2: It’s important to note that the cryptocurrency mining industry has been experiencing a period of significant volatility in recent times. Many companies, including Bitdeer, have faced similar challenges such as declining prices, increased competition, and regulatory uncertainty. However, Bitdeer’s performance stands out in some respects. Their decision to invest in research and development, as highlighted in the report, shows a commitment to long-term growth and sustainability. In terms of their specific financial results, the net loss of $50.1 million and the decline in total managed hash rate are concerning, but their ability to increase cash reserves is a positive sign.
Editor: Guest 1, can you elaborate on the conversion of hosting capacity at the Texas facility and its impact on the company’s operations?
Guest 1: Yes, sure. With the rise in global
