SINGAPORE, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today announced its unaudited financial results for the third quarter ended September 30, 2023.
Q3 2023 Financial Highlights
- Total revenue was US$87.3 million, compared to US$76.6 million in Q3 2022.
- Net loss was US$1.8 million, compared to a net loss of US$22.1 million in Q3 2022.
- Adjusted profit was US$10.5 million, compared to an adjusted loss of US$4.1 million in Q3 2022.
- AdjustedEBITDA was US$28.0 million, compared to US$8.7 million in Q3 2022.
- Cash and cash equivalents were US$134.5 million as of September 30, 2023.
Linghui Kong, Chief Executive Officer of Bitdeer, commented, “We delivered another robust performance in the third quarter, as our self-mining business mined 1,085 Bitcoins, representing a 121% year-over-year increase. We increased our revenues by 14% to US$87.3 million and our adjusted EBITDA by 222% to US$28.0 million year over year. These results were driven primarily by a 64% increase in our total hash rate under management over the past year to 21.2 EH/s, positioning us as one of the largest publicly traded commercial miners in the world by hash rate. Our operational and strategic excellence continued to drive our results, with developments during the quarter providing a foundation for long-term, sustainable growth. We recently became a Preferred Cloud Service Provider in the NVIDIA Partner Network, and we expect to launch Bitdeer AI Cloud in the first quarter of next year, which will be among the first cloud services powered by NVIDIA DGX SuperPod with DGX H100 systems in the Asia region. This development opens the door for new opportunities which synergize with our existing experience in cloud service and high-performance computing. On the infrastructure front, we further expanded and diversified our global footprint as our Bhutan-based Gedu datacenter, the Company’s first datacenter in Asia, entered full operations in August. This carbon-free datacenter has added 100MW to our aggregate electrical capacity and 3.3EH/s to our proprietary hash rate, and we expect to be able to further boost its operational scale in the future. We are also making progress towards the construction of a 175MW immersion cooling datacenter at our Tydal mining facility in Norway, which we anticipate will be completed in 2025. Moving forward, we will continue to evaluate the allocation of our hash rate between our three distinct business lines in order to further maximize profitability and shareholder value.”
“To supplement last quarter’s US$1,000,000 share repurchase program, our board of directors approved an additional US$2,000,000 share repurchase program in October. We are confident in the long-term stability and growth potential of our business, and we remain committed to creating lasting value for our shareholders.”
The majority of the Company’s revenue is derived from its three distinct business lines:
- Self-mining refers to cryptocurrency mining for the Company’s own account, which allows it to directly capture the high appreciation potential of cryptocurrency.
- Hash Rate Sharing currently primarily includes Cloud Hash Rate, in which the Company offers hash rate subscription plans and shares mining income with customers under certain arrangements.
- Hosting encompasses a one-stop mining machine hosting solution including deployment, maintenance, and management services for efficient cryptocurrency mining.
Financial Highlights
- Total revenue was US$87.3 million in the third quarter of 2023, compared to US$76.6 million in the corresponding period of 2022, primarily due to the increase in revenue generated from the Company’s self-mining business as a result of the increased self-mining hash rate and increased Bitcoin production. The Company’s increased hosting capacity also led to an increase in revenue generated from hosting services. These increases were partially offset by a decrease in revenue generated from Cloud Hash Rate.
- Net loss was US$1.8 million in the third quarter of 2023, compared to a net loss of US$22.1 million in the corresponding period of 2022. Net loss in the third quarter of 2023 was primarily caused by share-based payment expenses of US$12.3 million. Net loss in the third quarter of 2022 was primarily driven by share-based payment expenses of US$18.0 million and elevated electricity costs in Texas in the third quarter of 2022.
- Adjusted profit was US$10.5 million in the third quarter of 2023, compared to an adjusted loss of US$4.1 million in the corresponding period of 2022. Adjusted profit/(loss) is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as profit/(loss) adjusted to exclude the listing fee and share-based payment expenses under IFRS 2.
- AdjustedEBITDA was US$28.0 million in the third quarter of 2023, compared to US$8.7 million in the corresponding period of 2022. Adjusted EBITDA is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude the listing fee and share-based payment expenses under IFRS 2.
- Cash and cash equivalents were US$134.5 million as of September 30, 2023.
- Total Borrowings were US$22.6 million as of September 30, 2023.
Operational Highlights
| Metrics |
Three Months Ended September 30, |
|
2023 |
2022 |
| Total hash rate under management (EH/s) |
21.2 |
12.9 |
| - Proprietary hash rate |
8.7 |
4.4 |
| • Self-mining |
7.2 |
2.6 |
| • Cloud Hash Rate |
1.5 |
1.8 |
| - Hosting |
12.5 |
8.5 |
| Mining machines under management |
221,000 |
143,000 |
| - Self-owned |
92,000 |
56,000 |
| - Hosted |
129,000 |
87,000 |
| Aggregate electrical capacity(MW) |
895 |
755 |
| Bitcoin mined (self-mining only) |
1,085 |
490 |
- Total hash rate under management, which consists of proprietary hash rate and hosting hash rate, was 21.2 EH/s as of September 30, 2023.
- Proprietary hash rate was 8.7 EH/s as of September 30, 2023, with 7.2 EH/s allocated to the Company’s self-mining business and 1.5 EH/s to its Cloud Hash Rate business.
- Hosting hash rate was 12.5 EH/s as of September 30, 2023.
- Self-mining business mined 1,085 Bitcoins in the third quarter of 2023, representing a 121.4% increase as compared to 490 Bitcoins in the corresponding period of 2022, due to the increase in hash rate allocated to the Company’s self-mining business. The Company generally does not hold cryptocurrencies obtained through its self-mining business, and promptly converts them into fiat currency.
- Mining machines under management was approximately 221,000 ASIC mining machines as of September 30, 2023.
Self-owned mining machines for the Company’s self-mining business and Cloud Hash Rate business increased to approximately 92,000, primarily due to the launch of the mining datacenter in Bhutan.
Hosted mining machines increased to approximately 129,000, primarily due to the expansion of the Company’s mining datacenter in North America, which provides more capacity to serve hosting customers.
- Aggregate electrical capacity was 895MW across six mining datacenters as of September 30, 2023, representing an 18.5% increase from 755MW as of September 30, 2022. The Company also has another 175MW under construction in Norway as of September 30, 2023. The expansion to the Company’s Tydal mining facility in Norway is expected to be completed in 2025.
- Total power usage was approximately 1,209,000 MWH across the Company’s six mining datacenters in the third quarter of 2023.
- Average cost of electricity was approximately US$32/MWH in the third quarter of 2023.
- Average miner efficiency was 32.4 J/TH as of September 30, 2023.
Financial Results
|
Three Months Ended
September 30, 2023 |
|
(US$’000) |
| Business lines |
Self-
mining |
Cloud Hash
Rate |
General
Hosting |
Membership
Hosting |
| Revenue |
30,106 |
|
15,575 |
|
22,217 |
|
16,040 |
|
| Cost of revenue |
|
|
|
|
| Including: |
|
|
|
|
| - Electricity cost in operating mining machines |
(15,166 |
) |
(3,534 |
) |
(9,642 |
) |
(9,263 |
) |
| - Depreciation and share-based payment expenses |
(8,998 |
) |
(4,720 |
) |
(3,108 |
) |
(2,245 |
) |
| - Other cash costs |
(2,355 |
) |
(1,218 |
) |
(1,739 |
) |
(1,293 |
) |
| Total cost of revenue |
(26,519 |
) |
(9,472 |
) |
(14,489 |
) |
(12,801 |
) |
| Gross profit / (loss) |
3,587 |
|
6,103 |
|
7,728 |
|
3,239 |
|
|
Three Months Ended
September 30, 2022 |
|
(US$’000) |
| Business lines |
Self-
mining |
Cloud Hash
Rate |
General
Hosting |
Membership
Hosting |
| Revenue |
10,792 |
|
26,636 |
|
26,739 |
|
4,704 |
|
| Cost of revenue |
|
|
|
|
| Including: |
|
|
|
|
| - Electricity cost in operating mining machines |
(5,230 |
) |
(6,848 |
) |
(24,810 |
) |
(4,345 |
) |
| - Depreciation and share-based payment expenses |
(5,945 |
) |
(7,794 |
) |
(4,118 |
) |
(583 |
) |
| - Other cash costs |
(1,070 |
) |
(2,413 |
) |
(2,229 |
) |
(636 |
) |
| Total cost of revenue |
(12,245 |
) |
(17,055 |
) |
(31,157 |
) |
(5,564 |
) |
| Gross profit / (loss) |
(1,453 |
) |
9,581 |
|
(4,418 |
) |
(860 |
) |
Revenue
Total revenue was US$87.3 million in the third quarter of 2023, compared to US$76.6 million in the third quarter of 2022.
- Self-mining revenue was US$30.1 million, compared to US$10.8 million in the third quarter of 2022, primarily due to the increase in self-mining hash rate from the Company’s 100MW Gedu mining datacenter in Bhutan that entered operations during the quarter as well as a higher average price of Bitcoin.
- Cloud Hash Rate revenue was US$15.6 million, compared to US$26.6 million in the third quarter of 2022, primarily due to changes in the amount of active Cloud Hash Rate orders.
- General Hosting revenue was US$22.2 million, compared to US$26.7 million in the third quarter of 2022, primarily because the capacity of general hosting was modestly lower in the third quarter of 2023 compared to the same period of 2022.
- Membership Hosting revenue was US$16.0 million, compared to US$4.7 million in the third quarter of 2022, primarily due to revenue generated from the expansion of the Company’s mining datacenter in North America, which provides more capacity to serve hosting customers.
Cost of Revenue
Cost of revenue was US$66.2 million in the third quarter of 2023, compared to US$73.0 million in the corresponding period of 2022, primarily due to decreases in electricity costs, which were elevated in the third quarter of 2022, and decreases in share-based compensation and staff costs for mining datacenter personnel.
Gross Profit
Gross profit was US$21.1 million in the third quarter of 2023, representing a 24.2% gross margin, compared to US$3.5 million, or a 4.6% gross margin, in the corresponding period of 2022.
Operating Expenses
The sum of below operating expenses in the third quarter of 2023 was US$27.3 million, as compared to US$28.3 million in the corresponding period of 2022.
- Selling expenses were US$1.9 million, compared to US$2.3 million in the third quarter of 2022, primarily due to decreases in share-based compensation to sales personnel.
- General and administrative expenses were US$16.8 million, compared to US$18.9 million in the third quarter of 2022, primarily due to decreases in share-based compensation, partially offset by an increase in staff costs to general and administrative personnel.
- Research and development expenses were US$8.5 million, compared to US$7.2 million in the third quarter of 2022, primarily due to increases in salaries, wages, and other benefits caused by the increase in the number of research and development personnel, and increases in research and development technical service fees.
Net Loss
Net loss was US$1.8 million, compared to a net loss of US$22.1 million in the third quarter of 2022.
Adjusted Profit/(loss) (Non-IFRS)
Adjusted profit was US$10.5 million, compared to an adjusted loss of US$4.1 million in the third quarter of 2022.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was US$28.0 million, compared to US$8.7 million in the third quarter of 2022, primarily due to the increase in revenue and decreases in electricity costs and losses on foreign currency transactions.
Liquidity
As of September 30, 2023, the Company held US$134.5 million in cash and cash equivalents, as compared to US$130.2 million as of June 30, 2023. The cash inflow mainly came from the Company’s operational results, partially offset by use of cash including payment for mining datacenter construction of US$13.4 million and repayment of convertible debt of US$7.0 million.
Recent Developments
On October 19, 2023, the Company announced that its board of directors had approved a new share repurchase program under which the Company may repurchase up to US$2,000,000 worth of its Class A ordinary shares, effective through April 17, 2024.
On November 9, 2023, the Company announced that it had become a Preferred Cloud Service Provider (CSP) in the NVIDIA Partner Network and plans to launch Bitdeer AI Cloud, among the first cloud services powered by NVIDIA DGX SuperPOD with DGX H100 systems in the Asia region. The service will provide Bitdeer’s customers with access to NVIDIA AI supercomputing to help them accelerate their development of generative AI, large language models (LLMs), and other AI workloads. Bitdeer expects its upcoming DGX SuperPOD-based high-performance cloud service platform to launch in the first quarter of 2024.
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive digital asset computing solutions for its customers. Bitdeer handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management and daily operations. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, please visit https://www.bitdeer.com/.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.
Use of Non-IFRS Financial Measures
In evaluating the Company’s business, the Company considers and uses non-IFRS measures, adjusted EBITDA and adjusted profit/(loss), as supplemental measures to review and assess its operating performance. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude the listing fee and share-based payment expenses under IFRS 2, and defines adjusted profit/(loss) as profit/(loss) adjusted to exclude the listing fee and share-based payment expenses under IFRS 2. The Company presents these non-IFRS financial measures because they are used by its management to evaluate its operating performance and formulate business plans. The Company also believes that the use of these non-IFRS measures facilitate investors’ assessment of its operating performance. These measures are not necessarily comparable to similarly titled measures used by other companies. As a result, investors should not consider these measures in isolation from, or as a substitute analysis for, the Company’s loss for the periods, as determined in accordance with IFRS.
The Company compensates for these limitations by reconciling these non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating its performance. The Company encourages investors to review its financial information in its entirety and not rely on a single financial measure.
The following table presents a reconciliation of loss for the relevant period to adjusted EBITDA and adjusted profit, for the three and nine months ended September 30, 2023 and 2022.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
|
|
|
|
|
|
| Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
| Add： |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
19,664 |
|
|
18,493 |
|
|
55,887 |
|
|
47,744 |
|
| Income tax (benefit) / expenses |
|
(1,458 |
) |
|
(5,282 |
) |
|
(4,265 |
) |
|
2,693 |
|
| Interest (income)/ expense, net |
|
(734 |
) |
|
(392 |
) |
|
(2,119 |
) |
|
1,337 |
|
| Listing fee |
|
- |
|
|
- |
|
|
33,151 |
|
|
- |
|
| Share-based payment expenses |
|
12,319 |
|
|
18,025 |
|
|
34,166 |
|
|
72,450 |
|
| Total of Adjusted EBITDA |
|
27,993 |
|
|
8,707 |
|
|
65,195 |
|
|
76,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Profit / (loss) |
|
|
|
|
|
|
|
|
| Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
| Add： |
|
|
|
|
|
|
|
|
| Listing fee |
|
- |
|
|
- |
|
|
33,151 |
|
|
- |
|
| Share-based payment expenses |
|
12,319 |
|
|
18,025 |
|
|
34,166 |
|
|
72,450 |
|
| Total of Adjusted Profit / (loss) |
|
10,521 |
|
|
(4,112 |
) |
|
15,692 |
|
|
25,119 |
|
Unaudited Consolidated Statements of Financial Position
|
|
As of September 30, |
|
As of December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
US$ |
|
US$ |
|
|
|
(in thousands) |
| ASSETS |
|
|
|
|
|
| Cash and cash equivalents |
|
134,512 |
|
|
231,362 |
|
| Cryptocurrencies |
|
9,126 |
|
|
2,175 |
|
| Trade receivables |
|
13,712 |
|
|
18,304 |
|
| Amounts due from a related party |
|
1 |
|
|
397 |
|
| Mining machines |
|
71,432 |
|
|
27,703 |
|
| Prepayments and other assets |
|
90,860 |
|
|
59,576 |
|
| Financial assets at fair value through profit or loss |
|
36,486 |
|
|
60,959 |
|
| Restricted cash |
|
9,538 |
|
|
11,494 |
|
| Right-of-use assets |
|
60,196 |
|
|
60,082 |
|
| Property, plant and equipment |
|
153,297 |
|
|
138,636 |
|
| Investment properties |
|
33,917 |
|
|
35,542 |
|
| Intangible assets |
|
4,920 |
|
|
322 |
|
| Deferred tax assets |
|
3,610 |
|
|
4,857 |
|
| TOTAL ASSETS |
|
621,607 |
|
|
651,409 |
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
| Trade payables |
|
24,962 |
|
|
15,768 |
|
| Other payables and accruals |
|
30,642 |
|
|
22,176 |
|
| Amounts due to a related party |
|
126 |
|
|
316 |
|
| Income tax payables |
|
948 |
|
|
657 |
|
| Deferred revenue |
|
148,379 |
|
|
182,297 |
|
| Borrowings |
|
22,562 |
|
|
29,805 |
|
| Lease liabilities |
|
71,066 |
|
|
70,425 |
|
| Deferred tax liabilities |
|
4,162 |
|
|
11,626 |
|
| TOTAL LIABILITIES |
|
302,847 |
|
|
333,070 |
|
|
|
|
|
|
|
| NET ASSETS |
|
318,760 |
|
|
318,339 |
|
|
|
|
|
|
|
| EQUITY |
|
|
|
|
|
| Share capital* |
|
- |
|
|
- |
|
| Treasury shares |
|
(233 |
) |
|
- |
|
| (Accumulated deficit) / retained earnings |
|
(44,822 |
) |
|
6,803 |
|
| Reserves* |
|
363,815 |
|
|
311,536 |
|
| TOTAL EQUITY |
|
318,760 |
|
|
318,339 |
|
__________________
* After giving the effects of the reverse recapitalization completed in April 2023.
Unaudited Consolidated Statements of Operations and Comprehensive Loss
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
| Revenue |
|
87,303 |
|
|
76,582 |
|
|
253,706 |
|
|
256,201 |
|
| Cost of revenue |
|
(66,187 |
) |
|
(73,040 |
) |
|
(202,941 |
) |
|
(183,662 |
) |
| Gross profit |
|
21,116 |
|
|
3,542 |
|
|
50,765 |
|
|
72,539 |
|
| Selling expenses |
|
(1,926 |
) |
|
(2,307 |
) |
|
(6,241 |
) |
|
(8,610 |
) |
| General and administrative expenses |
|
(16,849 |
) |
|
(18,880 |
) |
|
(49,320 |
) |
|
(71,566 |
) |
| Research and development expenses |
|
(8,501 |
) |
|
(7,155 |
) |
|
(21,228 |
) |
|
(26,898 |
) |
| Listing fee |
|
- |
|
|
- |
|
|
(33,151 |
) |
|
- |
|
| Other operating income / (expenses) |
|
818 |
|
|
34 |
|
|
718 |
|
|
(2,757 |
) |
| Other net gain |
|
862 |
|
|
96 |
|
|
2,470 |
|
|
1,226 |
|
| Loss from operations |
|
(4,480 |
) |
|
(24,670 |
) |
|
(55,987 |
) |
|
(36,066 |
) |
| Finance income / (expenses) |
|
1,224 |
|
|
(2,749 |
) |
|
97 |
|
|
(8,572 |
) |
| Loss before taxation |
|
(3,256 |
) |
|
(27,419 |
) |
|
(55,890 |
) |
|
(44,638 |
) |
| Income tax benefit / (expenses) |
|
1,458 |
|
|
5,282 |
|
|
4,265 |
|
|
(2,693 |
) |
| Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
| Other comprehensive Loss |
|
|
|
|
|
|
|
|
| Loss for the periods |
|
(1,798 |
) |
|
(22,137 |
) |
|
(51,625 |
) |
|
(47,331 |
) |
| Other comprehensive income for the periods |
|
|
|
|
|
|
|
| Item that may be reclassified to profit or loss |
|
|
|
|
|
|
|
|
| - Exchange differences on translation of financial statements |
|
8 |
|
|
11 |
|
|
17 |
|
|
11 |
|
| Other comprehensive income for the periods, net of tax |
|
8 |
|
|
11 |
|
|
17 |
|
|
11 |
|
| Total comprehensive loss for the periods |
|
(1,790 |
) |
|
(22,126 |
) |
|
(51,608 |
) |
|
(47,320 |
) |
|
|
|
|
|
|
|
|
|
| Loss per share* |
|
|
|
|
|
|
|
|
| Basic |
|
(0.02 |
) |
|
(0.20 |
) |
|
(0.47 |
) |
|
(0.44 |
) |
| Diluted |
|
(0.02 |
) |
|
(0.20 |
) |
|
(0.47 |
) |
|
(0.44 |
) |
| Weighted average number of shares outstanding (thousand shares)* |
|
|
|
|
|
|
|
|
| Basic |
|
111,284 |
|
|
108,681 |
|
|
110,303 |
|
|
108,681 |
|
| Diluted |
|
111,284 |
|
|
108,681 |
|
|
110,303 |
|
|
108,681 |
|
__________________
* After giving the effects of the reverse recapitalization completed in April 2023.
Contacts
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825
Public Relations
Brad Burgess, SVP
ICR, LLC
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056
