Crypto Miner Bitdeer Reports Steep Q4 Loss, Targets 40 EH/s Hashrate Goal

Bitdeer Technologies Group, a prominent player in the blockchain and high-performance computing space, has reported a significant loss for the fourth quarter of 2024, amounting to $531.9 million. This marks a sharp increase from the $5 million loss reported during the same period in the previous year. The company’s revenue for Q4 2024 was $69 million, down from $114.8 million in Q4 2023. The decline in revenue and the widening loss are attributed to Bitdeer’s strategic investments in the development of proprietary application-specific integrated circuit (ASIC) technology, which temporarily hindered hashrate growth.

Despite these challenges, Bitdeer remains in a strong cash position, holding $476.3 million in cash and cash equivalents as of December 31, 2024. Looking ahead, the company has set an ambitious goal to achieve a total self-mining hashrate of approximately 40 exahashes per second (EH/s) by the fourth quarter of 2025. To reach this goal, Bitdeer plans to activate its SEALMINER A1s and 28 exahashes per second of SEALMINER A2s. This expansion is part of Bitdeer’s broader strategy to vertically integrate and strengthen its competitive edge in the blockchain and high-performance computing industries.

At the time of writing, Bitdeer’s stock (BTDR) is trading at $9.10, reflecting a decline of over 30% for the day. The substantial loss has raised concerns among investors, but Bitdeer’s plans for power growth and artificial intelligence data center development could potentially support a recovery. The trend of miners pivoting toward artificial intelligence data center leasing, as seen with other companies like Crusoe Energy, is also seen as a move to diversify revenue streams.

The overall bitcoin mining industry continues to face headwinds following the April 2024 halving event, which reduced daily bitcoin rewards from 900 to 450 coins. This change has raised the cost of producing one bitcoin, with estimates suggesting it costs U.S.-listed miners as much as $55,950 to mine a single bitcoin in Q3 2024, and as high as $106,000 when including depreciation and stock-based compensation.

Despite these challenges, some analysts remain optimistic about the industry’s future. Notably, analysts from H.C. Wainwright pointed out that the fourth quarter of 2024 was a positive period for bitcoin miners, driven by Bitcoin’s rise above $100,000 for the first time and the growing adoption of cryptocurrency following pro-crypto policies under President Donald Trump’s potential return to the White House.