Bitdeer Technologies Group posted a $532 million net loss for Q4 2024, citing major investments in proprietary mining hardware development as it pursues vertical integration in the Bitcoin mining sector.
Revenue Decline and Rising Costs
The company’s quarterly revenue dropped 40% year-over year to $69.0 million, with gross profit plummeting from $27.0 million in Q4 2023 to just $5.1 million. Management attributed these declines to Bitcoin’s April 2024 halving event and the strategic shift toward in-house ASIC (application-specific integrated circuit) mining chips.
Operating expenses surged to $42.5 million, including $22.9 million in research and development costs focused on its Sealminer ASIC chip series. Despite the losses, Bitdeer emphasized that these investments would drive long-term gains by improving mining efficiency and cutting dependency on third-party hardware providers.
Massive Chip Investments with TSMC
A key factor in the Q4 loss was $243.4 million in payments to Taiwan Semiconductor Manufacturing Company (TSMC) for ASIC chip production. The company allocated $190.6 million to mass-produce its SEAL02 mining chips and $52.8 million for SEAL03 tapeouts, setting the stage for a 40 exahash per second (EH/s) self-mining target by late 2025, a significant increase from its current 8.7 EH/s.
“Owning and deploying our own mining ASICs is an integral part of our full vertical integration strategy,” said Matt Kong, Chief Business Officer at Bitdeer, highlighting the company’s commitment to scaling operations efficiently.
Operational Setback for Bitdeer Technologies Amid Expansion
Self-mined Bitcoin output dropped 64% to 469 BTC (compared to 1,299 BTC in Q4 2023), largely due to post-halving economic shifts. Hosting revenue also fell sharply, dropping from $25.2 million to $8.5 million, as customers reduced older mining rigs.
Despite these challenges, Bitdeer held 594 BTC ($77.5 million) as of December 31 and strengthened its cash reserves to $476.3 million through convertible note issuances.
Scaling Power Infrastructure for 2025
Bitdeer’s global power capacity now exceeds 2.6 gigawatts (GW), with over 1 GW set to go online in 2025. Ongoing projects in Norway, Ohio, and Bhutan are expected to support both mining and high-performance computing ventures, reinforcing its long-term strategy.
Looking Ahead: ASIC Leadership and Market Positioning
The company is advancing development on its third- and fourth-generation ASIC Bitcoin mining chips, aiming for leadership in energy-efficient mining technology.
Bitdeer’s $532 million net loss included $479.8 million in non-cash charges related to fair value adjustments on convertible notes and warrants. Adjusted EBITDA stood at negative $3.8 million, reflecting near-term financial strain as it ramps up ASIC investments.
While analysts may scrutinize cash burn rates, executives remain confident in 2025 expansion plans, positioning Bitdeer as a major player in the next generation of Bitcoin mining infrastructure.
As of February 26, 2025, Bitdeer’s stock (BTDR) trades at $9.26, down $3.83 from the previous close.
