SINGAPORE, March 29, 2024 (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 financial results for the year ended December 31, 2023.
Full Year 2023 Financial Highlights
Linghui Kong, Chief Business Officer of Bitdeer, commented, “We continued to successfully execute on our operational strategies during 2023, as we mined 3,694 Bitcoins, representing a 74.8% year-over-year increase. We grew our revenues by 10.6% year over year to $368.6 million, and recorded adjusted EBITDA of US$100.3 million, a 7.6% increase from 2022. At the same time, we remained focused on laying the strategic groundwork for our diversified, long-term growth. Advancing our technology vertical-integration strategy, we successfully tested our first Bitcoin mining chip, the 4nm SEAL01. Designed for integration into our new SEALMINER A1 mining machines, the chip marks our entry into the ASIC production space, promising significant cost and supply chain advantages and setting the stage to reach at least 46 EH/s hash rate under management by the end of 2025. Meanwhile, we made strides in diversifying and scaling our global mining business as our Gedu Datacenter commenced full operations, while progress continued on our infrastructure expansion initiatives in Norway and Ohio. We also achieved a significant milestone by completing deployment and testing of our NVIDIA DGX SuperPOD H100 system, positioning us as one of the first cloud service platforms in Asia to offer NVIDIA DGX SuperPOD H100 service. Looking ahead, we are confident that we are well-positioned for the upcoming halving, thanks to our diversified business model and access to low-cost power. As we move further into 2024, we will build on our achievements from our first year as a listed company to deliver long-term value for our shareholders.”
The majority of the Company’s revenue is derived from its three distinct business lines:
Financial Highlights
Operational Highlights
Metrics | Years Ended December 31, | |
2023 | 2022 | |
Total hash rate under management (EH/s) | 21.0 | 14.0 |
- Proprietary hash rate | 8.4 | 4.1 |
• Self-mining | 6.7 | 2.5 |
• Cloud Hash Rate | 1.7 | 1.6 |
- Hosting | 12.6 | 9.9 |
Mining machines under management | 215,000 | 152,000 |
- Self-owned | 86,000 | 50,000 |
- Hosted | 129,000 | 102,000 |
Aggregate electrical capacity (MW) | 895 | 775 |
Bitcoin mined (self-mining only) | 3,694 | 2,113 |
Financial Results
Year Ended December 31, 2023 | ||||||||
(US$’000) | ||||||||
Business lines | Self-mining | Cloud Hash Rate | General Hosting | Membership Hosting | ||||
Revenue | 111,683 | 67,881 | 97,321 | 79,906 | ||||
Cost of revenue | ||||||||
Including: | ||||||||
- Electricity cost in operating mining machines | (52,259 | ) | (17,089 | ) | (54,581 | ) | (55,508 | ) |
- Depreciation and share-based payment expenses | (29,164 | ) | (19,723 | ) | (13,198 | ) | (10,669 | ) |
- Other cash costs | (8,365 | ) | (5,273 | ) | (7,552 | ) | (6,608 | ) |
Total cost of revenue | (89,788 | ) | (42,085 | ) | (75,331 | ) | (72,785 | ) |
Gross profit | 21,895 | 25,796 | 21,990 | 7,121 |
Year Ended December 31, 2022 | ||||||||
(US$’000) | ||||||||
Business lines | Self-mining | Cloud Hash Rate | General Hosting | Membership Hosting | ||||
Revenue | 62,359 | 121,341 | 99,251 | 26,056 | ||||
Cost of revenue | ||||||||
Including: | ||||||||
- Electricity cost in operating mining machines | (20,381 | ) | (23,299 | ) | (72,099 | ) | (20,344 | ) |
- Depreciation and share-based payment expenses | (22,624 | ) | (30,812 | ) | (13,266 | ) | (3,482 | ) |
- Other cash costs | (4,398 | ) | (8,557 | ) | (6,999 | ) | (3,118 | ) |
Total cost of revenue | (47,403 | ) | (62,668 | ) | (92,364 | ) | (26,944 | ) |
Gross profit / (loss) | 14,956 | 58,673 | 6,887 | (888 | ) | |||
Revenue
Total revenue was US$368.6 million, compared to US$333.3 million in the full year of 2022.
Cost of Revenue
Cost of revenue was US$290.7 million, compared to US$250.1 million in the full year of 2022, primarily due to increases in electricity costs that were mainly attributable to the increase of mining datacenter capacity in the second half of 2022 and the delivery of the Gedu datacenter in the third quarter of 2023.
Gross Profit
Gross profit was US$77.8 million, representing a 21.1% gross margin, compared to US$83.3 million, or a 25.0% gross margin, in the full year of 2022.
Operating Expenses
The sum of below operating expenses in the full year of 2023 was US$104.2 million, as compared to US$140.6 million in the full year of 2022.
Net Loss
Net loss was US$56.7 million, compared to US$60.4 million in the full year of 2022.
Adjusted Profit (Non-IFRS)
Adjusted profit was US$22.0 million, compared to US$30.3 million in the full year of 2022.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was US$100.3 million, compared to US$93.2 million in the full year of 2022, primarily due to the increase in revenue and gain on disposal of cryptocurrencies, partially offset by increases in electricity costs.
Liquidity
As of December 31, 2023, the Company held US$144.7 million in cash and cash equivalents, as compared to US$231.4 million as of December 31, 2022. Use of cash included active construction of mining datacenters in North America, Norway, and Bhutan, and the purchase of mining machines in 2023.
Recent Developments
On January 24, 2024, the Company announced that it had been named as one of Singapore’s Fastest Growing Companies 2024. The annual ranking is conducted by The Straits Times and Statista and recognizes a wide range of firms notable for rapid growth and commitment to the local economy.
On January 29, 2024, the Company announced the appointment of Mr. Jihan Wu, the Company’s Founder and Chairman of its Board of Directors (the “Board”), as Chief Executive Officer of the Company, effective as of March 1, 2024. In addition to his new role as Chief Executive Officer, Mr. Jihan Wu remains as Chairman of the Company’s Board. The Company’s then-current Chief Executive Officer Mr. Linghui Kong transitioned to the role of Chief Business Officer and continues to serve as a member of the Company’s Board, also effective as of March 1, 2024.
On March 4, 2024, the Company announced the successful testing of its first Bitcoin mining chip, the SEAL01. Powerfully efficient, SEAL01 is designed for integration into Bitdeer’s new SEALMINER A1 mining machines.
On March 18, 2024, the Company announced that it has completed the deployment and successful testing of its NVIDIA DGX SuperPOD H100 system ahead of schedule, becoming one of the first cloud service platforms in the Asian region to offer NVIDIA DGX SuperPOD H100 service.
On March 26, 2024, the Company announced a hash rate expansion plan of approximately 3.4 EH/s as a first step in its plan to expand its self-mining. The Company intends to install its own SEALMINER A1 miners at its mining datacenters in Rockdale, Texas, United States, and in Norway by the end of 2024 to accomplish this initial expansion.
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive computing solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management and daily operations. The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, please visit https://www.bitdeer.com/ or follow Bitdeer on X, formerly known as Twitter, @ BitdeerOfficial, Facebook @Bitdeer and LinkedIn @ Bitdeer Group.
Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social media and other communication channels listed on its website.
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 years to adjusted EBITDA and adjusted profit, for the years ended December 31, 2023 and 2022.
Years ended December 31, | ||||||
2023 | 2022 | |||||
US$ | US$ | |||||
(in thousands) | ||||||
Adjusted EBITDA | ||||||
Loss for the year | (56,656 | ) | (60,366 | ) | ||
Add: | ||||||
Depreciation and amortization | 75,541 | 66,424 | ||||
Income tax (benefit) / expenses | 5,685 | (4,400 | ) | |||
Interest (income)/ expense, net | (2,872 | ) | 912 | |||
Listing fee | 33,151 | - | ||||
Share-based payment expenses | 45,488 | 90,648 | ||||
Total of Adjusted EBITDA | 100,337 | 93,218 | ||||
Adjusted Profit | ||||||
Loss for the year | (56,656 | ) | (60,366 | ) | ||
Add: | ||||||
Listing fee | 33,151 | - | ||||
Share-based payment expenses | 45,488 | 90,648 | ||||
Total of Adjusted Profit | 21,983 | 30,282 | ||||
Consolidated Statements of Financial Position
As of December 31, | As of December 31, | |||||
2023 | 2022 | |||||
US$ | US$ | |||||
(in thousands) | ||||||
ASSETS | ||||||
Cash and cash equivalents | 144,729 | 231,362 | ||||
Cryptocurrencies | 15,371 | 2,175 | ||||
Trade receivables | 17,277 | 18,304 | ||||
Amounts due from a related party | 187 | 397 | ||||
Prepayments and other assets | 97,433 | 59,576 | ||||
Financial asset at fair value through profit or loss | 37,775 | 60,959 | ||||
Restricted cash | 9,538 | 11,494 | ||||
Mining machines | 63,477 | 27,703 | ||||
Right-of-use assets | 58,626 | 60,082 | ||||
Property, plant and equipment | 154,860 | 138,636 | ||||
Investment properties | 34,346 | 35,542 | ||||
Intangible assets | 4,777 | 322 | ||||
Deferred tax assets | 991 | 4,857 | ||||
TOTAL ASSETS | 639,387 | 651,409 | ||||
LIABILITIES | ||||||
Trade payables | 32,484 | 15,768 | ||||
Other payables and accruals | 32,151 | 22,176 | ||||
Amounts due to a related party | 33 | 316 | ||||
Income tax payables | 3,367 | 657 | ||||
Deferred revenue | 144,337 | 182,297 | ||||
Borrowings | 22,618 | 29,805 | ||||
Lease liabilities | 70,211 | 70,425 | ||||
Deferred tax liabilities | 1,620 | 11,626 | ||||
TOTAL LIABILITIES | 306,821 | 333,070 | ||||
NET ASSETS | 332,566 | 318,339 | ||||
EQUITY | ||||||
Share capital[1] | * | * | ||||
Treasury shares | (2,604 | ) | - | |||
Retained earnings / (accumulated deficit) | (49,853 | ) | 6,803 | |||
Reserves[1] | 385,023 | 311,536 | ||||
TOTAL EQUITY | 332,566 | 318,339 |
_______________
* Amount less than US$1,000.
[1] After giving the effects of the reverse recapitalization completed in April 2023.
Consolidated Statements of Operations and Comprehensive Loss
Years ended December 31, | ||||||
2023 | 2022 | |||||
US$ | US$ | |||||
(in thousands) | ||||||
Revenue | 368,554 | 333,342 | ||||
Cost of revenue | (290,745 | ) | (250,090 | ) | ||
Gross profit | 77,809 | 83,252 | ||||
Selling expenses | (8,246 | ) | (11,683 | ) | ||
General and administrative expenses | (66,454 | ) | (93,453 | ) | ||
Research and development expenses | (29,534 | ) | (35,430 | ) | ||
Listing fee | (33,151 | ) | - | |||
Other operating income / (expenses) | 3,791 | (3,628 | ) | |||
Other net gain | 3,538 | 357 | ||||
Loss from operations | (52,247 | ) | (60,585 | ) | ||
Finance income / (expenses) | 1,276 | (4,181 | ) | |||
Loss before taxation | (50,971 | ) | (64,766 | ) | ||
Income tax benefit / (expenses) | (5,685 | ) | 4,400 | |||
Loss for the year | (56,656 | ) | (60,366 | ) | ||
Other comprehensive loss | ||||||
Loss for the year | (56,656 | ) | (60,366 | ) | ||
Other comprehensive loss for the year | ||||||
Item that may be reclassified to profit or loss | ||||||
- Exchange differences on translation of financial statements | (26 | ) | (22 | ) | ||
Other comprehensive loss for the year, net of tax | (26 | ) | (22 | ) | ||
Total comprehensive loss for the year | (56,682 | ) | (60,388 | ) | ||
Loss per share[1] | ||||||
Basic | (0.51 | ) | (0.56 | ) | ||
Diluted | (0.51 | ) | (0.56 | ) | ||
Weighted average number of shares outstanding (thousand shares)[1] | ||||||
Basic | 110,494 | 108,681 | ||||
Diluted | 110,494 | 108,681 |
_________________
[1] After giving the effects of the reverse recapitalization completed in April 2023.
Contacts
Investor Relations
Robin Yang, Partner
ICR, LLC
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Phone: +1 (212) 537-5825
Public Relations
Brad Burgess, SVP
ICR, LLC
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: +1 (212) 537-4056
Last Trade: | US$20.49 |
Daily Change: | 2.35 12.95 |
Daily Volume: | 10,324,595 |
Market Cap: | US$2.430B |
November 18, 2024 October 31, 2024 |
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