Bitdeer Technologies has recently reported a net loss of $50.1 million for the third quarter of 2024, with total revenue declining to $62 million from $87.3 million in the same period last year. The unaudited financial results, released on Nov. 18, point to factors such as the impact of the April 2024 Bitcoin halving, increased global hash rate, decreased hosting revenue, and higher research and development expenses related to the SEAL02 chip development as the primary reasons for the decrease.
Gross profit took a significant hit, dropping to $2.8 million from $21.1 million in the third quarter of 2023. Additionally, adjusted EBITDA turned negative at $8.5 million compared to a positive $28 million a year earlier. Despite these losses, cash and cash equivalents saw an increase to $291.3 million as of Sept. 30, up from $203.9 million in the previous quarter.
Bitdeer’s Chief Business Officer, Matt Kong, highlighted the company’s advancements in technological and strategic initiatives. Kong mentioned, “In our ASICs business, we made substantial progress in the commercialization of our SEALMINER mining rigs.”
The company successfully launched its second-generation SEALMINER A2 mining machine series equipped with the SEAL02 chip. These machines feature air-cooling and hydro-cooling models with hash rates of 226 TH/s and 446 TH/s, respectively, along with a power efficiency ratio of 16.5 J/TH. Mass production of the SEALMINER A2 series began in October, with the first production run expected to deliver 18 EH/s. These units will be used for self-mining and sold to external customers.
In the Cloud HPC and AI business, Bitdeer’s NVIDIA DGX SuperPOD system in Singapore achieved approximately 98% utilization in September. The company is also expanding a pilot program in Canada and exploring leveraging its 2.5 GW power capacity across three continents to meet growing demand from high-performance computing (HPC) and artificial intelligence (AI) data centers.
Operationally, the total hash rate under management decreased to 17.1 EH/s from 21.2 EH/s in the third quarter of 2023. This decline was primarily due to the conversion of 100 MW of hosting capacity at the Texas facility to hydro-cooling for self-mining, and some customers discontinuing hosting less efficient miners after the Bitcoin halving.
Self-mining revenue saw a slight increase to $31.5 million from $30.1 million, driven by a 27.9% increase in the average self-mining hash rate to 7.8 EH/s and higher Bitcoin prices during the quarter. However, this increase was not enough to fully offset the impact of the halving and the increased global network hash rate.
Bitdeer continues its global infrastructure expansion, with projects in Norway, Ohio, Texas, and Bhutan set to bring over an estimated 1.1 GW of new power capacity online in the coming year. Kong reiterated the company’s commitment to executing the SEALMINER roadmap, expanding self-mining hash rate, and leveraging the industry-leading global 2.5 GW power portfolio.