EX-99.1 2 ef20033833_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

 
Bitdeer Reported Unaudited Financial Results for the Second Quarter of 2024
 
August 12, 2024
•
Revenue of US$99.2 million and gross margin of 24.6%
 
•
Adjusted EBITDA of US$24.9 million, up 33.2% YoY
 
SINGAPORE, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“ Bitdeer” or the “ Company”), a world-leading technology company for blockchain and high-performance computing, today issued a letter to shareholders along with its unaudited financial and operational results for the second quarter ended June 30, 2024.
 
Q2 2024 Financial Highlights
 
 
•
Total revenue was US$99.2 million, compared to US$93.8 million in Q2 2023.
 
•
Cost of revenue was US$74.8 million, compared to US$77.7 million in Q2 2023.
 
•
Gross profit was US$24.4 million, compared to US$16.2 million in Q2 2023.
 
•
Net loss was US$17.7 million, compared to US$40.4 million in Q2 2023.
 
•
Adjusted EBITDA was US$24.9 million, compared to US$18.7 million in Q2 2023.
 
•
Cash and cash equivalents were US$203.9 million as of June 30, 2024.

Management Commentary
 
“Our second quarter was marked by strong financial performance and significant progress across all our major initiatives,” said Matt Kong, Chief Business Officer of Bitdeer. “We reported revenue of $99.2 million, gross profit of $24.4 million, and adjusted EBITDA of $24.9 million, up 5.8%, 50.6% and 33.2% year-over-year, respectively. We achieved these results despite significant growth in the global network hashrate and the April 2024 halving. This demonstrates the strength of our differentiated strategy, underpinned by Bitdeer’s commitment to technology and innovation. For instance, our previous R&D investment in our cloud hashrate business contributed a gross profit of $7.3 million with a nearly 60% gross margin in Q2 and helped us generate more revenue for the same amount of hashrate relative to our peers.”
 
Mr. Kong continued, “During the quarter, we also made significant strides in our SEALMINER ASIC roadmap. Our acquisition of Desiweminer enhances our capabilities by integrating their team with our in-house design team in Singapore. We have energized the first batch of our SEALMINER A1 chips, with mass production underway and plans to install 3.4 EH/s into our datacenters by year-end. Our second-generation SEAL02 chip initial tape-out wafer delivery from TSMC remains on track for late September. Upon successful testing, we anticipate ramping mass production by the end of the year. We also have started our third-generation SEAL03 chip R&D. In our HPC and AI business, we have deployed the NVIDIA DGX SuperPOD H100 system in Singapore and achieved 100% utilization in July. Additionally, our global power and datacenter infrastructure continues to expand. We announced a 30-year lease agreement for 570 MW of power capacity in Ohio, increasing our total global capacity to 2.5 GW. Our ongoing datacenter projects in the U.S., Norway, and Bhutan are on track, supporting our ambitious growth plans and solidifying Bitdeer as an industry leader for years to come.”
 
Mr. Kong added, “Finally, we ended the quarter in a strong financial position with $228.8 million of cash and cash equivalents and cryptocurrencies on hand. As we gear up for the upcoming bull market, we remain focused on expanding our Bitcoin self-mining capacity, executing our SEALMINER technology roadmap, and monetizing our impressive 2.5 GW power portfolio for HPC/AI.”
 
Operational Summary

 
Three Months Ended Jun 30,
Metrics
2024
2023
Total hash rate under management (EH/s)
22.3
18.8
- Proprietary hash rate
8.5
6.2
- Self-mining
7.3
3.8
- Cloud Hash Rate
1.2
1.6
- Delivered but not yet energized
-
0.8
- Hosting
13.8
12.6
Mining machines under management
223,000
199,000
- Self-owned
86,000
70,000
- Hosted
137,000
129,000
Bitcoin mined (self-mining only)
628
758
Total power usage (MWh)
1,192,000
1,136,000
Average cost of electricity ($/MWh)
43
41
Average miner efficiency (J/TH)
31.6
33.4

Power Infrastructure Summary

Site / Location
Capacity (MW)
Status
Timing3
Electrical capacity
      
- Rockdale, Texas
563
Online
Completed
- Knoxville, Tennessee
86
Online
Completed
- Wenatchee, Washington
13
Online
Completed
- Molde, Norway
84
Online
Completed
- Tydal, Norway
50
Online
Completed
- Gedu, Bhutan
100
Online
Completed
Total electrical capacity
895
    
Pipeline capacity
      
- Tydal, Norway Phase 1
40
In progress
Q4 2024
- Tydal, Norway Phase 2
135
In progress
Mid 2025
- Massillon, Ohio
221
In progress
Mid-to-late 2025
- Clarington, Ohio Phase 1
266
In progress
Q3 2025
- Clarington, Ohio Phase 2
304
Pending approval
Estimate 2026
- Jigmeling, Bhutan
500
In progress
Mid-Late 2025
- Rockdale, Texas
179
In planning
Estimate 2026
Total pipeline capacity
1,645
    
Total global electrical capacity
2,540
    
 
Financial MD&A
 
All variances are current quarter compared to the same quarter last year. All figures in this section are rounded.

US $ in millions
Three Months Ended
 
Jun 30, 2024
Mar 31, 2024
Jun 30, 2023
Total revenue
99.2
119.5
93.8
Cost of revenue
(74.8)
(85.4)
(77.7)
Gross profit
24.4
34.1
16.2
Net Income / (loss)
(17.7)
0.6
(40.4)
Adjusted EBITDA
24.9
26.0
18.7
Cash and cash equivalents
203.9
118.5
130.2

US $ in millions
Three Months Ended Jun 30, 2024
Business lines
Self-Mining
Cloud Hash Rate
General Hosting
Membership Hosting
Revenue
41.6
12.2
20.6
22.1
Cost of revenue
        
- Electricity cost in operating mining machines
(20.9)
(2.0)
(12.8)
(15.6)
- Depreciation and SBC expenses
(8.3)
(2.4)
(2.3)
(2.4)
- Other cash costs
(1.9)
(0.5)
(1.0)
(1.2)
Total cost of revenue
(31.1)
(4.9)
(16.1)
(19.2)
Gross profit
10.5
7.3
4.5
2.9

US $ in millions
Three Months Ended Jun 30, 2023
Business lines
Self-Mining
Cloud Hash Rate
General Hosting
Membership
Hosting
Revenue
21.6
18.0
27.8
23.9
Cost of revenue
        
- Electricity cost in operating mining machines
(9.5)
(4.1)
(18.6)
(17.1)
- Depreciation and SBC expenses
(6.2)
(5.2)
(3.7)
(3.1)
- Other cash costs
(1.9)
(1.6)
(2.4)
(2.3)
Total cost of revenue
(17.6)
(10.9)
(24.7)
(22.5)
Gross profit
4.0
7.1
3.1
1.4

Revenue
 
•
Total revenue was US$99.2 million vs. US$93.8 million.
 
•
Self-mining revenue was US$41.6 million vs. US$21.6 million, primarily due to the increase in self-mining hash rate to 7.3 EH/s from 3.8 EH/s from the Company’s 100MW Gedu mining datacenter in Bhutan that entered into operations in the second half of 2023 and the higher average Bitcoin price.

 
•
Cloud Hash Rate revenue was US$12.2 million vs. US$18.0 million. The decline was due to changes in the amount of active Cloud Hash Rate orders and the decrease in electricity subscription due to lower margins for customers caused by the April 2024 Halving.
 
•
General Hosting revenue was US$20.6 million vs. US$27.8 million. The decline was primarily due to the decrease of average hosting capacity caused by the temporary shutdown of hosting mining rigs after the April 2024 Halving.
 
•
Membership Hosting revenue was US$22.1 million vs. US$23.9 million, slightly down year-over-year.
 
Cost of Revenue

 
•
Cost of revenue was US$74.8 million vs US$77.7 million. The decrease was primarily driven by lower mining machine depreciation from becoming fully depreciated and the true up differences of tax and surcharges.
 
Gross Profit and Margin

 
•
Gross profit was US$24.4 million vs. US$16.2 million.
 
•
Gross margin was 24.6% vs. 17.2%.
 
Operating Expenses
 
 
•
The sum of the operating expenses below was US$26.1 million vs. US$24.8 million.
 
•
Selling expenses were US$2.2 million vs. US$1.9 million, primarily due to increased staff and compensation. 
 
•
General and administrative expenses were US$15.9 million vs. US$16.5 million, about flat year-over-year.
 
•
Research and development expenses were US$8.0 million vs. US$6.4 million, primarily due increased R&D personnel and material costs related to the development of SEALMINER chips.
 
Other Net Loss
 
 
•
In Q2, we recorded US$15.5 million other net loss primarily due to the non-cash expense of the fair value change for Tether warrants.
 
Net Loss
 
 
•
Net loss was US$17.7 million vs. US$40.4 million.
 
Adjusted Profit (Non-IFRS)
 
 
•
Adjusted profit was US$4.6 million vs. US$2.3 millio

Adjusted EBITDA (Non-IFRS)
 
 
•
Adjusted EBITDA was US$24.9 million vs. US$18.7 million. The increase was primarily due to the year-over-year revenue growth and higher gross profit margins as described above.

Cash Flows
 
 
•
Net cash used for operating activities was US$74.1 million;
 
•
Net cash generated from investing activities was US$54.3 million including the proceeds from disposal of cryptocurrencies of US$79.3 million received from the principal businesses.
 
•
Net cash generated from financing activities was US$105.1 million.

Capital Expenditures
 
 
•
Capital expenditures for PPE and mining machines were US$17.5 million vs. US$38.1 million. The decrease was driven by approximately US$20 million reduction in purchases of third party mining machines as the Company is focused on scaling operations with its own SEALMINERS going forward.
 
Liquidity
 
 
•
As of June 30, 2024, the Company held US$203.9 million in cash and cash equivalents, US$24.9 million in cryptocurrencies and US$37.8 million in debt.

Further information regarding the Company’s second quarter 2024 financial and operations results can be found on the SEC’s website https://sec.gov and the Company’s Investor Relations website https://ir.bitdeer.com.

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://ir.bitdeer.com/ or follow Bitdeer on X @BitdeerOfficial 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.
 
BITDEER GROUP UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
 
   
As of Jun 30,
    
As of Dec 31,
  
(US $ in thousands)
  
2024
    
2023
  
             
ASSETS
            
Cash and cash equivalents
    
203,882
      
144,729
  
Cryptocurrencies
    
24,916
      
15,371
  
Trade receivables
    
19,324
      
17,277
  
Amounts due from a related party
    
6,248
      
187
  
Prepayments and other assets
    
126,077
      
97,433
  
Financial assets at fair value through profit or loss
    
41,739
      
37,775
  
Restricted cash
    
9,144
      
9,538
  
Mining machines
    
55,126
      
63,477
  
Right-of-use assets
    
67,440
      
58,626
  
Property, plant and equipment
    
196,749
      
154,860
  
Investment properties
    
32,118
      
34,346
  
Intangible assets
    
26,975
      
4,777
  
Goodwill
    
14,451
      
-
  
Deferred tax assets
    
3,526
      
991
  
TOTAL ASSETS
    
827,715
      
639,387
  
                 
LIABILITIES
                
Trade payables
    
36,166
      
32,484
  
Other payables and accruals
    
33,570
      
32,151
  
Amounts due to a related party
    
3,380
      
33
  
Income tax payables
    
6,604
      
3,367
  
Derivative liabilities
    
25,336
      
-
  
Deferred revenue
    
87,104
      
144,337
  
Deferred revenue from a related party
    
32,777
      
-
  
Borrowings
    
37,828
      
22,618
  
Lease liabilities
    
79,362
      
70,211
  
Deferred tax liabilities
    
6,189
      
1,620
  
TOTAL LIABILITIES
    
348,316
      
306,821
  
                 
NET ASSETS
    
479,399
      
332,566
  
                 
EQUITY
                
Share capital
     *      
*
  
Treasury shares
    
-
      
(2,604
)
Accumulated deficit
    
(66,990
)
    
(49,853
)
Reserves
    
546,389
      
385,023
  
TOTAL EQUITY
    
479,399
      
332,566
  

* Amount less than US$1,000

BITDEER GROUP UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
        

  Three months ended Jun 30,
     Six months ended Jun 30,  
(US $ in thousands)
  
2024
    
2023
    
2024
    
2023
  
                         
Revenue[1]
    
99,229
      
93,816
      
218,735
      
166,403
  
Cost of revenue
    
(74,824
)
    
(77,659
)
    
(160,199
)
    
(136,754
)
Gross profit
    
24,405
      
16,157
      
58,536
      
29,649
  
Selling expenses
    
(2,173
)
    
(1,879
)
    
(3,863
)
    
(4,315
)
General and administrative expenses
    
(15,852
)
    
(16,467
)
    
(30,821
)
    
(32,471
)
Research and development expenses
    
(8,048
)
    
(6,433
)
    
(29,212
)
    
(12,727
)
Listing fee
    
-
      
(33,151
)
    
-
      
(33,151
)
Other operating income / (expenses)
    
1,431
      
(995
)
    
3,177
      
(100
)
Other net gain / (loss)
    
(15,467
)
    
1,468
      
(13,020
)
    
1,608
  
Loss from operations
    
(15,704
)
    
(41,300
)
    
(15,203
)
    
(51,507
)
Finance income / (expenses)
    
(44
)
    
(895
)
    
107
      
(1,127
)
Loss before taxation
    
(15,748
)
    
(42,195
)
    
(15,096
)
    
(52,634
)
Income tax benefit / (expenses)
    
(1,995
)
    
1,835
      
(2,041
)
    
2,807
  
Loss for the periods
    
(17,743
)
    
(40,360
)
    
(17,137
)
    
(49,827
)
Other comprehensive loss
                                
Loss for the periods
    
(17,743
)
    
(40,360
)
    
(17,137
)
    
(49,827
)
Other comprehensive income for the periods
                                
Item that may be reclassified to profit or loss
                                
- Exchange differences on translation of financial statements
     14      
21
      
46
      
9
  
Other comprehensive income for the periods, net of tax
    
14
      
21
      
46
      
9
  
Total comprehensive loss for the periods
    
(17,729
)
    
(40,339
)
    
(17,091
)
    
(49,818
)
                                 
Loss per share (Basic and diluted)
    
(0.14
)
    
(0.36
)
    
(0.14
)
    
(0.45
)

                               
Weighted average number of shares outstanding (thousands) (Basic and diluted)
     126,530       110,916       120,686       109,805  
           
[1]
Included approximately US$9.1 million and US$13.9 million generated from hosting service provided to a related party for the three months and six months ended June 30, 2024

BITDEER GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
Three months ended Jun 30,
    
Six months ended Jun 30,
  
(US $ in thousands)
  
2024
    
2023
    
2024
    
2023
  
                         
Cash used in operating activities:
    
(68,507
)
    
(66,875
)
    
(201,374
)
    
(158,602
)
Interest paid on leases
    
(1,024
)
    
(655
)
    
(1,676
)
    
(1,299
)
Interest paid on convertible debt
    
(465
)
    
(607
)
    
(930
)
    
(1,207
)
Interest received
    
1,722
      
2,096
      
3,535
      
4,074
  
Income tax paid
    
(5,850
)
    
(80
)
    
(5,850
)
    
(95
)
Net cash used in operating activities
    
(74,124
)
    
(66,121
)
    
(206,295
)
    
(157,129
)

                               
Cash flows from investing activities
                                
Purchase of property, plant and equipment, investment properties and intangible assets
    
(17,333
)
    
(17,168
)
    
(46,948
)
    
(24,609
)
Purchase of mining machines
    
(178
)
    
(20,939
)
    
(1,738
)
    
(62,510
)
Purchase of financial assets at fair value through profit or loss
    
(1,532
)
    
(400
)
    
(2,524
)
    
(1,400
)
Proceeds from disposal of financial assets at fair value through profit or loss
    
-
      
-
      
-
      
31,111
  
Lending to a third party
    
-
      
-
      
-
      
(62
)
Repayment of lending from a third party
    
-
      
606
      
-
      
-
  
Proceeds from disposal of property, plant and equipment
    
244
      
25
      
244
      
29
  
Proceeds from disposal of cryptocurrencies
    
79,344
      
69,719
      
169,724
      
125,240
  
Cash paid for a business combination, net of cash acquired
    
(6,277
)
    
-
      
(6,277
)
    
-
  
Net cash generated from investing activities
    
54,268
      
31,843
      
112,481
      
67,799
  
                                 
Cash flows from financing activities
                                
Capital element of lease rentals paid
    
(1,236
)
    
(1,392
)
    
(2,574
)
    
(2,632
)
Net payment related to Business Combination
    
-
      
(7,506
)
    
-
      
(7,651
)
Proceeds from issuance of shares for exercise of share rewards
    
567
      
-
      
604
      
-
  
Proceeds from issuance of ordinary shares and warrants, net of transaction costs1
    
106,064
      
-
      
155,692
      
-
  
Payment for the future issuance cost
    
(297
)
    
-
      
(297
)
    
-
  
Net cash generated from / (used in) financing activities
    
105,098
      
(8,898
)
    
153,425
      
(10,283
)
                                 
Net increase / (decrease) in cash and cash equivalents
    
85,242
      
(43,176
)
    
59,611
      
(99,613
)
Cash and cash equivalents at the beginning of the period
    
118,461
      
173,897
      
144,729
      
231,362
  
Effect of movements in exchange rates on cash and cash equivalents held
    
179
      
(518
)
    
(458
)
    
(1,546
)
Cash and cash equivalents at the end of the period
    
203,882
      
130,203
      
203,882
      
130,203
  

1
Net proceeds from issuance of ordinary shares and warrants in Q2 24 includes the effect from the utilization of payment for future issuance cost made in Q1 24.

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 changes in fair value of derivative liabilities, listing fee and share-based payment expenses under IFRS 2, and defines adjusted profit/(loss) as profit/(loss) adjusted to exclude the changes in fair value of derivative liabilities, 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 six months ended June 30, 2024 and 2023.
 
BITDEER GROUP NON-IFRS ADJUSTED EBITDA AND ADJUSTED PROFIT RECONCILIATION
 
    Three months ended Jun 30,
     Six months ended Jun 30,  
(US $ in thousands)
  
2024
    
2023
    
2024
    
2023
  
                         
Adjusted EBITDA
                        
Loss for the periods
    
(17,743
)
    
(40,360
)
    
(17,137
)
    
(49,827
)
Add：
                                
Depreciation and amortization
    
18,304
      
18,934
      
36,491
      
36,223
  
Income tax (benefit) / expenses
    
1,995
      
(1,835
)
    
2,041
      
(2,807
)
Interest income, net
    
(9
)
    
(741
)
    
(617
)
    
(1,385
)
Listing fee
    
-
      
33,151
      
-
      
33,151
  
Change in fair value of derivative liabilities
    
14,230
      
-
      
14,230
      
-
  
Share-based payment expenses
    
8,093
      
9,554
      
15,896
      
21,847
  
Total of Adjusted EBITDA
    
24,870
      
18,703
      
50,904
      
37,202
  
                                 
Adjusted Profit
                                
Loss for the periods
    
(17,743
)
    
(40,360
)
    
(17,137
)
    
(49,827
)
Add：
                                
Listing fee
    
-
      
33,151
      
-
      
33,151
  
Change in fair value of derivative liabilities
    
14,230
      
-
      
14,230
      
-
  
Share-based payment expenses
    
8,093
      
9,554
      
15,896
      
21,847
  
Total of Adjusted Profit
    
4,580
      
2,345
      
12,989
      
5,171
  

For investor and media inquiries, please contact:
 
Investor Relations
Yujia Zhai
Orange Group
bitdeerir@orangegroupadvisors.com
 
Public Relations Wachsman
Bee Shin
bitdeer@wachsman.com