Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the
“Company”), a world-leading technology company for the
cryptocurrency mining community, today announced its unaudited
financial results for the first quarter ended March 31, 2023.
Linghui Kong, Chief Executive Officer of
Bitdeer, commented, “We continued to deliver robust performance and
maintained a sufficient cash flow during the first quarter, despite
macroeconomic and crypto-market headwinds. While we recorded a net
loss of $9.5 million, our non-IFRS adjusted profit was $2.8 million
and non-IFRS adjusted EBITDA was $18.5 million. At the operational
level, we proactively optimized our cost base by locking up a
competitive price for 150MW electricity capacity in our Rockdale
mining datacenter effectively until the end of 2023. Moreover, we
further invested in our future growth by expanding our fleet of
mining machines and increasing our proprietary hash rate from 4.1
EH/s as of December 31, 2022 to 5.7 EH/s as of March 31, 2023.”
“Looking ahead, we are excited to partner with
Druk Holding & Investments to jointly develop a carbon-free
digital asset mining datacenter in the Kingdom of Bhutan. This
collaboration further expands our global footprint and complements
our existing datacenters in Northern Europe and North America. In
preparation for the partnership launch in May 2023, we have ordered
30,000 new mining machines to be deployed onsite, thus laying a
solid foundation for the project’s success.”
The majority of the Company’s revenue is
derived from its three distinct business lines:
-
Self-mining1 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.
First Quarter 2023 Financial
Highlights
-
Total revenue was $72.6 million in the first
quarter of 2023, compared to $90.4 million in the corresponding
period of 2022, primarily due to the year-over-year changes in
Bitcoin prices leading to a decrease in revenue generated from
self-mining and Cloud Hash Rate, partially offset by an increase in
revenue generated from hosting services.
-
Net loss was $9.5 million in the first quarter of
2023, compared to a net loss of $9.6 million in the corresponding
period of 2022. The net loss in each period was primarily caused by
share-based expenses, which was $12.3 million in the first quarter
of 2023 and $35.2 million in the first quarter of 2022.
-
Adjusted profit was $2.8 million in the first
quarter of 2023, compared to $25.6 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 share-based payment
expenses under IFRS 2.
-
Adjusted EBITDA was $18.5 million
in the first quarter of 2023, compared to $46.3 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 share-based payment
expenses under IFRS 2.
-
Cash and cash equivalents were $173.9 million as
of March 31, 2023.
First Quarter 2023 Operational
Highlights
-
Total managing hash rate, which consists of
proprietary hash rate and hosting hash rate, was 18.3 EH/s as of
March 31, 2023.
-
Proprietary hash rate was 5.7 EH/s as of March 31, 2023, with 3.9
EH/s allocated to the Company’s self-mining business and 1.8 EH/s
to its Cloud Hash Rate business.
-
Hosting hash rate was 12.6 EH/s as of March 31, 2023.
Self-mining business mined 552 Bitcoins in the
first quarter of 2023, as compared to 538 Bitcoins in the
corresponding period of 2022.
-
Total deployed fleet was approximately 196,000
ASIC mining machines, including approximately 67,000 of the
Company’s own mining machines for its self-mining business and
Cloud Hash Rate business, and approximately 129,000 mining machines
for its hosting business.
-
Aggregate electricity capacity was 795MW across
five mining datacenters as of March 31, 2023, representing a 90.6%
increase from 417MW as of March 31, 2022. The Company also has
another 100MW of capacity under construction in Bhutan. The
datacenter to be constructed in Bhutan is expected to commence
operation in the third quarter of 2023.
-
Total power usage was approximately 992,700 MWH
across the Company’s five mining datacenters in the first quarter
of 2023.
First Quarter 2023 Financial
Results
Revenue
Total revenue was $72.6 million, compared to
$90.4 million in the corresponding period of 2022.
-
Self-mining revenue was $13.2 million, compared to $23.4 million in
the corresponding period of 2022, primarily due to year-over-year
changes in Bitcoin prices during the quarter.
-
Revenue from Cloud Hash Rate was $18.0 million, compared to $40.0
million in the corresponding period of 2022, primarily due to
changes in the amount of active Cloud Hash Rate orders.
-
Revenue from General Hosting was $22.1 million, compared to $22.2
million in the corresponding period of 2022, remaining stable.
-
Revenue from Membership Hosting was $16.5 million, compared to nil
in the corresponding period of 2022, primarily due to revenue
generated from the Company’s North America mining datacenter, which
began to deliver capacity in the second half of 2022.
Gross Profit
Gross profit was $13.5 million in the first
quarter of 2023, representing a 18.6% gross margin, compared to
$41.4 million, or a 45.7% gross margin, in the corresponding period
of 2022, mainly due to a change in total revenue and an increase in
electricity and depreciation costs attributable to the expansion of
the Company’s mining datacenters.
Operating Expenses
The sum of below operating expenses in the first
quarter of 2023 was $24.7 million, as compared to $45.7 million in
the corresponding period of 2022.
- Selling
expenses were $2.4 million, compared to $3.8 million in the
corresponding period of 2022, primarily due to decreases in
share-based compensation to sales personnel.
- General
and administrative expenses were $16.0 million, compared to $30.7
million in the corresponding period of 2022, primarily due to
decreases in share-based compensation and staff costs to general
and administrative personnel.
-
Research and development expenses were $6.3 million, compared to
$11.1 million in the corresponding period of 2022, primarily due to
decreases in share-based compensation to research and development
personnel.
Net Loss
Net loss was $9.5 million, compared to a net loss of $9.6
million in the corresponding period of 2022.
Adjusted Profit (Non-IFRS)
Adjusted profit was $2.8 million, compared to $25.6 million in
the corresponding period of 2022.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was $18.5 million, compared to
$46.3 million in the corresponding period of 2022, primarily due to
a decrease in revenue and an increase in electricity costs.
Liquidity
As of March 31, 2023, the Company held $173.9
million in cash and cash equivalents, as compared to $231.4 million
as of December 31, 2022. Use of cash included purchase of mining
fleets of $18.7 million, prepayment to mining fleets suppliers of
$22.5 million, and deposits to electricity suppliers of $37.6
million.
Recent Developments
On May 3, 2023, the Company and Druk Holding
& Investments, the commercial arm of the Royal Government of
Bhutan, announced a strategic partnership to develop
environmentally sustainable, carbon-free digital asset mining
operations in the Kingdom of Bhutan.
Recently, management has been exploring means to
mitigate risks related to potential Bitcoin price volatility which
may include hedging or other options. At the same time, management
is considering introducing a dividend policy and share buyback
programs to reward and create more value for the Company's
shareholders.
About Bitdeer Technologies
Group
Bitdeer is a world-leading technology company
for the cryptocurrency mining community headquartered in Singapore.
Bitdeer has committed to providing comprehensive digital asset
mining solutions for its customers. Bitdeer handles complex
processes involved in mining such as miner procurement, transport
logistics, mining datacenter design and construction, mining
machine management and daily operations. Bitdeer has mining
datacenters deployed in the United States and Norway. To learn
more, visit https://ir.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 share-based payment
expenses under IFRS 2, and defines adjusted profit/(loss) as
profit/(loss) adjusted to exclude 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 months ended March 31, 2023 and 2022.
|
|
Three months ended March 31, |
|
|
2023 |
|
2022 |
|
|
US$ |
|
US$ |
|
|
(in thousands) |
Adjusted
EBITDA |
|
|
|
|
Loss for the periods |
|
(9,467 |
) |
|
(9,587 |
) |
Add: |
|
|
|
|
Depreciation and
amortization |
|
17,289 |
|
|
14,145 |
|
Income tax
expenses/(benefit) |
|
(972 |
) |
|
5,469 |
|
Interest expense/(income),
net |
|
(644 |
) |
|
1,146 |
|
Share-based payment
expenses |
|
12,293 |
|
|
35,174 |
|
Adjusted
EBITDA |
|
18,499 |
|
|
46,347 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Profit |
|
|
|
|
Loss for the periods |
|
(9,467 |
) |
|
(9,587 |
) |
Add: |
|
|
|
|
Share-based payment
expenses |
|
12,293 |
|
|
35,174 |
|
Adjusted
Profit |
|
2,826 |
|
|
25,587 |
|
|
|
|
|
|
|
|
Consolidated Statements of Financial
Position
|
|
As of March 31, |
|
As of December 31, |
|
|
2023 |
|
2022 |
|
|
US$ |
|
US$ |
|
|
(in thousands) |
ASSETS |
|
|
|
Cash and cash equivalents |
|
173,897 |
|
|
231,362 |
Cryptocurrencies |
|
4,537 |
|
|
2,175 |
Trade receivables |
|
15,250 |
|
|
18,304 |
Amounts due from a related
party |
|
311 |
|
|
397 |
Mining machines |
|
41,829 |
|
|
27,703 |
Prepayments and other
assets |
|
126,902 |
|
|
59,576 |
Financial assets at fair value
through profit or loss |
|
30,848 |
|
|
60,959 |
Restricted cash |
|
11,494 |
|
|
11,494 |
Right-of-use assets |
|
58,943 |
|
|
60,082 |
Property, plant and
equipment |
|
132,706 |
|
|
138,636 |
Investment properties |
|
35,645 |
|
|
35,542 |
Intangible assets |
|
286 |
|
|
322 |
Deferred tax assets |
|
4,123 |
|
|
4,857 |
TOTAL
ASSETS |
|
636,771 |
|
|
651,409 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Trade payables |
|
16,084 |
|
|
15,768 |
Other payables and
accruals |
|
22,300 |
|
|
22,176 |
Amounts due to a related
party |
|
21 |
|
|
316 |
Income tax payables |
|
642 |
|
|
657 |
Deferred revenue |
|
167,633 |
|
|
182,297 |
Borrowings |
|
29,895 |
|
|
29,805 |
Lease liabilities |
|
69,597 |
|
|
70,425 |
Deferred tax liabilities |
|
9,446 |
|
|
11,626 |
TOTAL
LIABILITIES |
|
315,618 |
|
|
333,070 |
|
|
|
|
|
NET
ASSETS |
|
321,153 |
|
|
318,339 |
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital |
|
1 |
|
|
1 |
Retained earnings/(accumulated
deficit) |
|
(2,664 |
) |
|
6,803 |
Reserves |
|
323,816 |
|
|
311,535 |
TOTAL
EQUITY |
|
321,153 |
|
|
318,339 |
|
|
|
|
|
|
Consolidated Statements of Operations
and Comprehensive Loss
|
|
Three months ended March 31, |
|
|
2023 |
|
2022 |
|
|
US$ |
|
US$ |
|
|
(in thousands) |
Revenue |
|
72,587 |
|
|
90,441 |
|
Cost of revenue |
|
(59,095 |
) |
|
(49,087 |
) |
Gross
profit |
|
13,492 |
|
|
41,354 |
|
Selling expenses |
|
(2,436 |
) |
|
(3,846 |
) |
General and administrative
expenses |
|
(16,004 |
) |
|
(30,743 |
) |
Research and development
expenses |
|
(6,294 |
) |
|
(11,084 |
) |
Other operating
income/(expenses) |
|
895 |
|
|
(82 |
) |
Other net gain |
|
140 |
|
|
1,112 |
|
Loss from
operations |
|
(10,207 |
) |
|
(3,289 |
) |
Finance expenses |
|
(232 |
) |
|
(829 |
) |
Loss before
taxation |
|
(10,439 |
) |
|
(4,118 |
) |
Income tax
benefit/(expenses) |
|
972 |
|
|
(5,469 |
) |
Loss for the
period |
|
(9,467 |
) |
|
(9,587 |
) |
|
|
|
|
|
Other comprehensive
loss |
|
|
|
|
Loss for the period |
|
(9,467 |
) |
|
(9,587 |
) |
Other comprehensive
loss for the period |
|
|
|
|
Item that may be reclassified
to profit or loss |
|
|
|
|
- Exchange
differences on translation of financial statements |
|
(12 |
) |
|
- |
|
Other comprehensive
loss for the period, net of tax |
|
(12 |
) |
|
- |
|
Total comprehensive
loss for the period |
|
(9,479 |
) |
|
(9,587 |
) |
Loss per
share |
|
|
|
|
Basic |
|
(0.00 |
) |
|
(0.00 |
) |
Diluted |
|
(0.00 |
) |
|
(0.00 |
) |
Weighted average
number of shares outstanding (thousand shares) |
|
|
|
|
Basic |
|
12,662,126 |
|
|
12,662,126 |
|
Diluted |
|
12,662,126 |
|
|
12,662,126 |
|
Contacts
Investor RelationsRobin Yang, PartnerICR, LLCEmail:
Bitdeer.ir@icrinc.com Phone: +1 (212) 537-5825
Public Relations
Brad Burgess, SVPICR, LLCEmail: Bitdeer.pr@icrinc.comPhone: +1
(212) 537-4056
_______________________
¹Self-mining formerly known as “Proprietary mining” as disclosed
in F-4/20-F filings.
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