Bitdeer grows revenue but books losses in Q2

Bitdeer increased cash flow in Q2 2023, though its profitability was offset by a significant acquisition and share-based compensation costs.

The Singapore-based crypto mining company dropped its earnings release Friday, reporting an increase in its mining hash rate from 2.1 exahashes per second to 3.8 exahashes per second during the second quarter of 2022.

The self mining business also produced 758 bitcoins compared to 521 bitcoins in the second quarter of 2022.

Bitdeer credited its surge in hashing power for the Q2 revenue boost, reporting $93.8 million — a 5% increase year over year.

Bitdeer CEO Linghui Kong also brought up the company’s recent completion of its mining site in Bhutan and a new immersion cooling data center as things that will drive growth going forward. 

“Our 100MW mining datacenter in Bhutan is in the process of power-on testing, and the mining machines are beginning stable operation,” Kong said in a statement.

He continued, “In addition, we recently commenced construction of a 175MW immersion cooling data center at our Tydal mining facility in Norway, which is expected to be completed in 2025.”

With some expansion plans finalized and others ongoing, Bitdeer has naturally added many more miners to its operation.

As of June 30, Bitdeer has 199,000 mining machines under management, whereas a year ago, it had 119,000. Bitdeer’s business model has shifted over the last twelve months, with a majority of the machines being hosted instead of self owned. 

However, as the company continues to mature, it reported a net loss of $40.4 million in the second quarter. This marks a significant surge since last year’s quarterly loss of $15.6 million.

Bitdeer attributed its heightened loss to its April merger with the special purpose acquisition company, Blue Safari Group Acquisition Corp. The listing fee alone was $33.2 million and share based payment expenses amounted to $9.6 million this quarter.

Before the stock market opened, Bitdeer’s stock had dropped around 26% in the past 30 days. But it erased all of those losses Friday morning, rallying over 27% as of publication time.

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