Bitdeer’s Q4 Loss: A Tale of ASIC Dreams and Crypto Reality

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What to know:

  • Bitdeer’s Q4 loss widens to $532 million, but they’re focusing on ASIC development for 2025 growth.
  • Revenue drops to $69 million from $114.8 million the year before.
  • The company aims to ramp up self-mining hashrate to 40 EH/s by year-end.

Dear readers, gather ’round as we delve into the world of Bitdeer Technologies Group (BTDR), a Singapore-based bitcoin mining company that has recently posted a staggering $531.9 million net loss for the fourth quarter.

Why, you ask? Well, it seems that the company has been investing heavily in developing its own ASIC mining rigs. Matt Kong, the firm’s chief business officer, explained, “While our focus on ASIC development temporarily limited hashrate expansion, we made significant progress in strengthening our technology roadmap.”

In simpler terms, they’ve been focusing on creating their own mining machines, which has led to a temporary slowdown in their overall mining capacity. But fear not, for they believe that owning their own ASICs will allow them to rapidly deploy hashrate, lower cost, and improve capital efficiency.

Now, let’s talk about revenue. It fell to $69 million, down 40% from the year-earlier period, with declines across self-mining, hosting, and cloud hash rate services. Ouch.

But don’t worry, they’re not giving up! Bitdeer is doubling down on growth, aiming to increase its self-mining capacity to 40 exahash per second (EH/s) by the end of 2025. This would place the company among the largest bitcoin mining operations in the world.

They also plan to scale their power infrastructure, with over 1 gigawatt (GW) of capacity set to go online next year — more than doubling the current 900 megawatts (MW).

Bitdeer sees potential in the ASIC market, noting strong demand for alternative suppliers. The firm is also positioning itself to supply energy for AI data centers, aiming to capitalize on rising demand for computing power.

Despite these ambitious plans, the shares fell 28% on the day amid a broader decline in traditional and crypto markets. The stock is now trading for $9.49, more than 64% lower than its end-December all-time high. Talk about a rollercoaster ride!

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2025-02-25 19:52