Unaudited Condensed Consolidated Financial Statements as of June 30, 2024 and December 31, 2023 and for the Six Months Ended June 30, 2024
and 2023
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
|
Note
|
June 30,
2024
|
December 31, 2023
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
9
|
|
|
|||||||||
Cryptocurrencies
|
10
|
|
|
|||||||||
Trade receivables
|
|
|
||||||||||
Amounts due from a related party
|
25
|
|
|
|||||||||
Prepayments and other assets
|
11
|
|
|
|||||||||
Financial assets at fair value through profit or loss
|
12
|
|
|
|||||||||
Restricted cash
|
9
|
|
|
|||||||||
Mining machines
|
13
|
|
|
|||||||||
Right-of-use assets
|
17
|
|
|
|||||||||
Property, plant and equipment
|
14
|
|
|
|||||||||
Investment properties
|
15
|
|
|
|||||||||
Intangible assets
|
16
|
|
|
|||||||||
Goodwill
|
16
|
|
|
|||||||||
Deferred tax assets
|
24
|
|
|
|||||||||
TOTAL ASSETS
|
|
|
||||||||||
LIABILITIES
|
||||||||||||
Trade payables
|
|
|
||||||||||
Other payables and accruals
|
20
|
|
|
|||||||||
Amounts due to a related party
|
25
|
|
|
|||||||||
Income tax payables
|
|
|
||||||||||
Derivative liabilities
|
19
|
|
|
|||||||||
Deferred revenue
|
|
|
||||||||||
Deferred revenue from a related party
|
25
|
|
|
|||||||||
Borrowings
|
18
|
|
|
|||||||||
Lease liabilities
|
17
|
|
|
|||||||||
Deferred tax liabilities
|
24
|
|
|
|||||||||
TOTAL LIABILITIES
|
|
|
||||||||||
NET ASSETS
|
|
|
||||||||||
EQUITY
|
||||||||||||
Share capital
|
23
|
|
|
|||||||||
Treasury shares
|
23
|
|
(
|
)
|
||||||||
Accumulated deficit
|
23
|
(
|
)
|
(
|
)
|
|||||||
Reserves
|
23
|
|
|
|||||||||
TOTAL EQUITY
|
|
|
Periods ended June 30,
|
||||||||||||
Note
|
2024
|
2023
|
||||||||||
Revenue
|
7, 25
|
|
|
|||||||||
Cost of revenue
|
21(a)
|
|
(
|
)
|
(
|
)
|
||||||
Gross profit
|
|
|
||||||||||
Selling expenses
|
21(a)
|
|
(
|
)
|
(
|
)
|
||||||
General and administrative expenses
|
21(a)
|
|
(
|
)
|
(
|
)
|
||||||
Research and development expenses
|
21(a)
|
|
(
|
)
|
(
|
)
|
||||||
Listing fee
|
6(a)
|
|
|
(
|
)
|
|||||||
Other operating income / (expenses)
|
21(b)
|
|
|
(
|
)
|
|||||||
Other net gains / (losses)
|
21(c)
|
|
(
|
)
|
|
|||||||
Loss from operations
|
(
|
)
|
(
|
)
|
||||||||
Finance income / (expenses)
|
21(d)
|
|
|
(
|
)
|
|||||||
Loss before taxation
|
(
|
)
|
(
|
)
|
||||||||
Income tax benefits / (expenses)
|
24
|
(
|
)
|
|
||||||||
Loss for the periods
|
(
|
)
|
(
|
)
|
||||||||
Other comprehensive loss
|
||||||||||||
Loss for the periods
|
(
|
)
|
(
|
)
|
||||||||
Other comprehensive income for the periods
|
||||||||||||
Item that may be reclassified to profit or loss
|
||||||||||||
- Exchange differences on translation of financial statements
|
|
|
||||||||||
Other comprehensive income for the periods, net of tax
|
|
|
||||||||||
Total comprehensive loss for the periods
|
(
|
)
|
(
|
)
|
||||||||
Loss per share (basic and diluted)
|
26
|
(
|
)
|
(
|
)
|
|||||||
Weighted average number of shares outstanding (thousand shares) (basic and diluted)
|
26
|
|
|
Share Capital
|
Treasury Shares
|
Retained Earnings /
(Accumulated
Deficit)
|
Exchange
Reserve
|
Other Reserve
|
Total Equity
|
|||||||||||||||||||
Balance at January 1, 2024
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||||
Loss for the period
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
||||||||||||||||||
Share-based payments
|
|
|
|
|
|
|
||||||||||||||||||
Issuance of shares for exercise of share awards
|
|
|
|
|
|
|
||||||||||||||||||
Cancellation of treasury shares
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
Issuance of shares for cash, net of transaction costs
|
|
|
|
|
|
|
||||||||||||||||||
Issuance of shares as consideration for the Norway Acquisition
|
|
|
|
|
|
|
||||||||||||||||||
Issuance of share options as consideration for the Norway Acquisition
|
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2024
|
|
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||
Balance at January 1, 2023
|
|
|
|
(
|
)
|
|
|
|||||||||||||||||
Issuance of shares through Business Combination
|
|
|
|
|
|
|
||||||||||||||||||
Loss for the period
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
||||||||||||||||||
Share-based payments
|
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2023
|
|
|
(
|
)
|
(
|
)
|
|
|
Periods ended June 30,
|
||||||||
2024
|
2023
|
|||||||
Cash flows from operating activities |
||||||||
Cash used in operating activities:
|
(
|
)
|
(
|
)
|
||||
Interest paid on leases
|
(
|
)
|
(
|
)
|
||||
Interest paid on convertible debt
|
(
|
)
|
(
|
)
|
||||
Interest received
|
|
|
||||||
Income tax paid
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
Cash flows from investing activities
|
||||||||
Purchase of property, plant and equipment, investment properties and intangible assets
|
(
|
)
|
(
|
)
|
||||
Purchase of mining machines
|
(
|
)
|
(
|
)
|
||||
Purchase of financial assets at fair value through profit or loss
|
(
|
)
|
(
|
)
|
||||
Proceeds from disposal of financial assets at fair value through profit or loss
|
|
|
||||||
Lending to a third party
|
|
(
|
)
|
|||||
Proceeds from disposal of property, plant and equipment
|
|
|
||||||
Proceeds from disposal of cryptocurrencies
|
|
|
||||||
Cash paid for the Norway Acquisition, net of cash acquired
|
(
|
)
|
|
|||||
Net cash generated from investing activities
|
|
|
||||||
Cash flows from financing activities
|
||||||||
Capital element of lease rentals paid
|
(
|
)
|
(
|
)
|
||||
Net payment related to Business Combination
|
|
(
|
)
|
|||||
Proceeds from issuance of shares for exercise of share rewards
|
|
|
||||||
Proceeds from issuance of ordinary shares and warrants, net of transaction costs
|
|
|
||||||
Payment for future issuance costs
|
(
|
)
|
|
|||||
Net cash generated from / (used in) financing activities
|
|
(
|
)
|
|||||
Net increase / (decrease) in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at January 1
|
|
|
||||||
Effect of movements in exchange rates on cash and cash equivalents held
|
(
|
)
|
(
|
)
|
||||
Cash and cash equivalents at June 30
|
|
|
a. |
Business Combinations
|
b. |
Goodwill
|
c. |
Inventories
|
d. |
Financial Instruments
|
e. |
Changes in accounting policies and newly adopted accounting policies
|
f. |
Standards and interpretations effective but not yet adopted
|
At June 30, 2024
|
||||||||||||||||||||||||
In thousands of USD
|
Within 1
year or on
demand
|
More than
1 year but
less than 2
years
|
More than
2 years but
less than 5
years
|
More
than 5
years
|
Total
|
Carrying
amount at
June 30
|
||||||||||||||||||
Trade payables
|
|
|
|
|
|
|
||||||||||||||||||
Other payables and accruals
|
|
|
|
|
|
|
||||||||||||||||||
Amounts due to a related party
|
|
|
|
|
|
|
||||||||||||||||||
Borrowings
|
|
|
|
|
|
|
||||||||||||||||||
Lease liabilities
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
At December 31, 2023
|
||||||||||||||||||||||||
In thousands of USD
|
Within 1
year or on
demand
|
More than
1 year but
less than 2
years
|
More than
2 years but
less than 5
years
|
More
than 5
years
|
Total
|
Carrying
amount at December 31
|
||||||||||||||||||
Trade payables
|
|
|
|
|
|
|
||||||||||||||||||
Other payables and accruals
|
|
|
|
|
|
|
||||||||||||||||||
Amounts due to a related party
|
|
|
|
|
|
|
||||||||||||||||||
Borrowings
|
|
|
|
|
|
|
||||||||||||||||||
Lease liabilities
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
•
|
Level 1 valuation: unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
|
•
|
Level 2 valuation: inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.
|
•
|
Level 3 valuation: fair value measured using significant unobservable inputs.
|
In thousands of USD
|
Valuation technique(s) and
key input
|
June 30, 2024
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
USDC
|
Quoted price
|
|
|
|
|
||||||||||||
Cryptocurrency-settled receivables
|
Quoted price
|
|
|
|
|
||||||||||||
Investment A, B, D, and E in unlisted equity instrument
|
Net asset value
|
|
|
|
|
||||||||||||
Investment F, I and J in unlisted equity instrument
|
Recent transaction price
|
|
|
|
|
||||||||||||
Investment C in unlisted equity instrument
|
Market calibration method
|
|
|
|
|
||||||||||||
Investment G in unlisted debt instrument
|
Net asset value
|
|
|
|
|
||||||||||||
Investment H in unlisted debt instrument
|
Recent transaction price
|
|
|
|
|
||||||||||||
Cryptocurrency-settled payables
|
Quoted price
|
|
|
|
|
||||||||||||
Derivative liabilities
|
Option pricing model
|
|
|
|
|
In thousands of USD
|
Valuation technique(s) and
key input
|
December 31, 2023
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
USDC
|
Quoted price
|
|
|
|
|
||||||||||||
Cryptocurrency-settled receivables
|
Quoted price
|
|
|
|
|
||||||||||||
Investment A, B, D and E in unlisted equity instrument
|
Net asset value
|
|
|
|
|
||||||||||||
Investment F in unlisted equity instrument
|
Recent transaction price
|
|
|
|
|
||||||||||||
Investment C in unlisted equity instrument
|
Market calibration method
|
|
|
|
|
||||||||||||
Investment G in unlisted debt instrument
|
Net asset value
|
|
|
|
|
||||||||||||
Investment H in unlisted debt instrument
|
Recent transaction price
|
|
|
|
|
||||||||||||
Cryptocurrency-settled payables
|
Quoted price
|
|
|
|
|
In thousands of USD
|
Unlisted equity
instruments and
debt
instruments
|
Derivative
liabilities
|
||||||
At January 1, 2024
|
|
|
||||||
Additions
|
|
|
||||||
Disposals
|
|
|
||||||
Net fair value changes recognized in profit or loss
|
|
|
||||||
At June 30, 2024
|
|
|
||||||
At January 1, 2023
|
|
|
||||||
Additions
|
|
|
||||||
Disposals
|
(
|
)
|
|
|||||
Net fair value changes recognized in profit or loss
|
|
|
||||||
At June 30, 2023
|
|
|
(a) |
Business combination between BTG, Bitdeer and BSGA (the “Business Combination”)
|
At April 13, 2023
|
||||
In thousands of USD, except for the closing price of BSGA’s share and the number of ordinary shares information
|
||||
Number of outstanding ordinary shares held by BSGA’s shareholders on acquisition date (thousand shares)
|
|
|||
Closing price of BSGA’s ordinary shares on acquisition date (in USD)
|
|
|||
Fair value of BSGA’s ordinary shares on acquisition date
|
|
|||
Settlement of pre-existing debtor relationship with BSGA*
|
|
|||
Total fair value of consideration transferred
|
|
|||
Fair value of assets acquired and liabilities assumed:
|
||||
Cash and cash equivalents
|
|
|||
Prepayments and other assets
|
|
|||
Other payables and accruals
|
(
|
)
|
||
Total fair value of assets acquired and liabilities assumed
|
(
|
)
|
||
Excess of fair value of consideration transferred over fair value of assets acquired and liabilities assumed, recognized as listing fee
|
|
(b) |
Acquisition of Troll Housing AS and Tydal Data Center AS (the “Norway Acquisition”)
|
In thousands of USD
|
At April 15, 2024
|
|||
Purchase consideration
|
||||
Cash consideration paid
|
|
|||
Senior secured notes (1)
|
|
|||
|
|
|||
Class A ordinary share call options (3)
|
|
|||
Total purchase consideration
|
|
|||
Settlement of pre-existing debtor relationship with the Target Companies (4)
|
(
|
)
|
||
Fair value of consideration transferred
|
|
(1) |
|
(2) |
|
(3) |
|
At April 15, 2024
|
||||
Share price
|
|
|||
Dividend yield (%)
|
|
|||
Expected volatility (%)
|
|
%
|
||
Risk-free interest rate (%)
|
|
%
|
(4) |
|
In thousands of USD
|
||||
Fair value of assets acquired and liabilities assumed
|
||||
Cash and cash equivalents
|
|
|||
Trade receivables
|
|
|||
Prepayments and other assets
|
|
|||
Right-of-use assets
|
|
|||
Property, plant and equipment
|
|
|||
Identified intangible assets: rights to electricity capacity
|
|
|||
Deferred tax assets
|
|
|||
Trade payables
|
(
|
)
|
||
Other payables and accruals
|
(
|
)
|
||
Income tax payables
|
(
|
)
|
||
Lease liabilities
|
(
|
)
|
||
Deferred tax liabilities
|
(
|
)
|
||
Net identifiable assets acquired
|
|
|||
Goodwill
|
|
|||
Net assets acquired
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Self-mining
|
|
|
||||||
Cloud hash rate
|
||||||||
Hash rate subscription
|
|
|
||||||
Electricity subscription
|
|
|
||||||
Additional consideration from Cloud Hash Rate arrangements under acceleration mode
|
|
|
||||||
Sales of mining machines
|
|
|
||||||
Cloud hosting arrangements (2)
|
|
|
||||||
General hosting
|
|
|
||||||
Membership hosting
|
|
|
||||||
Others (1)
|
|
|
||||||
Total revenues
|
|
|
(1) |
|
(2) |
|
Six months ended June 30,
|
||||||||
2024
|
2023
|
|||||||
Customer A
|
*
|
|
%
|
|||||
Customer B
|
|
%
|
*
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Singapore
|
|
|
||||||
Asia, excluding Singapore
|
|
|
||||||
North America
|
|
|
||||||
Europe
|
|
|
||||||
Others
|
|
|
||||||
Total
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Singapore
|
|
|
||||||
Asia, excluding Singapore
|
|
|
||||||
North America
|
|
|
||||||
Europe
|
|
|
||||||
Total
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
US dollar
|
|
|
||||||
Singapore dollar
|
|
|
||||||
Chinese renminbi
|
|
|
||||||
Norwegian krone
|
|
|
||||||
Euro
|
|
|
||||||
Hongkong dollar
|
|
|
||||||
Bhutan ngultrum
|
|
|
||||||
Total cash and cash equivalents by currency
|
|
|
||||||
Restricted cash
|
|
|
||||||
Total restricted cash
|
|
|
At June 30, 2024
|
At December 31, 2023
|
|||||||
Draw Amount (In thousands of USD)
|
|
|
||||||
Range of expiration dates
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Cryptocurrencies other than USDC
|
|
|
||||||
USDC
|
|
|
||||||
Total cryptocurrencies
|
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Cost:
|
||||||||
Beginning balances
|
|
|
||||||
Additions
|
|
|
||||||
Disposals
|
(
|
)
|
(
|
)
|
||||
Ending balances
|
|
|
||||||
Impairment:
|
||||||||
Beginning balances
|
(
|
)
|
(
|
)
|
||||
Additions
|
(
|
)
|
|
|||||
Disposals
|
|
|
||||||
Ending balances
|
(
|
)
|
(
|
)
|
||||
Net book value:
|
||||||||
Beginning balances
|
|
|
||||||
Ending balances
|
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Cost:
|
||||||||
Beginning balances
|
|
|
||||||
Additions
|
|
|
||||||
Disposals
|
(
|
)
|
(
|
)
|
||||
Ending balances
|
|
|
||||||
Impairment:
|
||||||||
Beginning balances
|
(
|
)
|
(
|
)
|
||||
Additions
|
(
|
)
|
|
|||||
Disposals
|
|
|
||||||
Ending balances
|
(
|
)
|
(
|
)
|
||||
Net book value:
|
||||||||
Beginning balances
|
|
|
||||||
Ending balances
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Prepayments to suppliers
|
|
|
||||||
Deposits (1)
|
|
|
||||||
Inventories (2)
|
||||||||
Raw materials
|
|
|
||||||
Work-in-progress
|
|
|
||||||
Finished goods
|
|
|
||||||
Deductible input value-added tax
|
|
|
||||||
Prepayments of income tax
|
|
|
||||||
Others
|
|
|
||||||
Total
|
|
|
(1) |
|
(2) |
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Investments in unlisted equity instruments
|
||||||||
- Investment A
|
|
|
||||||
- Investment B
|
|
|
||||||
- Investment C
|
|
|
||||||
- Investment D – investment in a limited partnership set up by Matrixport Group (1)
|
|
|
||||||
- Investment E
|
|
|
||||||
- Investment F
|
|
|
||||||
- Investment I
|
|
|
||||||
- Investment J
|
|
|
||||||
Investments in unlisted debt instruments
|
||||||||
- Investment G
|
|
|
||||||
- Investment H
|
|
|
||||||
Total
|
|
|
(1) |
|
In thousands of USD
|
Mining Machines
|
|||
Cost:
|
||||
At January 1, 2024
|
|
|||
Additions
|
|
|||
At June 30, 2024
|
|
|||
Accumulated depreciation:
|
||||
At January 1, 2024
|
(
|
)
|
||
Charge for the period
|
(
|
)
|
||
At June 30, 2024
|
(
|
)
|
||
Impairment:
|
||||
At January 1, 2024
|
(
|
)
|
||
At June 30, 2024
|
(
|
)
|
||
Net book value:
|
||||
At June 30, 2024
|
|
|||
Cost:
|
||||
At January 1, 2023
|
|
|||
Additions
|
|
|||
Disposals
|
(
|
)
|
||
At June 30, 2023
|
|
|||
Accumulated depreciation:
|
||||
At January 1, 2023
|
(
|
)
|
||
Charge for the period
|
(
|
)
|
||
Disposals
|
|
|||
At June 30, 2023
|
(
|
)
|
||
Impairment:
|
||||
At January 1, 2023
|
(
|
)
|
||
At June 30, 2023
|
(
|
)
|
||
Net book value:
|
||||
At June 30, 2023
|
|
In thousands of USD
|
Construction in progress
|
Building
|
Land
|
Machinery
|
Electronic equipment
|
Leasehold improvements and property improvements
|
Others
|
Total
|
||||||||||||||||||||||||
Cost:
|
||||||||||||||||||||||||||||||||
At January 1, 2024
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Additions
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Acquired through the Norway Acquisition (Note 6(b))
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Construction in progress transferred in
|
(
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Disposals
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Exchange adjustments
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
At June 30, 2024
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Accumulated depreciation:
|
||||||||||||||||||||||||||||||||
At January 1, 2024
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Charge for the period
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Disposals
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
At June 30, 2024
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Net book value:
|
||||||||||||||||||||||||||||||||
At June 30, 2024
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Cost:
|
||||||||||||||||||||||||||||||||
At January 1, 2023
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Additions
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Construction in progress transferred in
|
(
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Disposals
|
|
|
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||
At June 30, 2023
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Accumulated depreciation:
|
||||||||||||||||||||||||||||||||
At January 1, 2023
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Charge for the period
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Disposals
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
At June 30, 2023
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Net book value:
|
||||||||||||||||||||||||||||||||
At June 30, 2023
|
|
|
|
|
|
|
|
|
In thousands of USD
|
Leasehold land
|
Building
|
Others
|
Total
|
||||||||||||
Cost:
|
||||||||||||||||
At January 1, 2024
|
|
|
|
|
||||||||||||
Additions
|
|
|
|
|
||||||||||||
Disposals
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Exchange adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
At June 30, 2024
|
|
|
|
|
||||||||||||
Accumulated depreciation:
|
||||||||||||||||
At January 1, 2024
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Charge for the period
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Disposals
|
|
|
|
|||||||||||||
Exchange adjustments
|
|
|
|
|
||||||||||||
At June 30, 2024
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net book value:
|
||||||||||||||||
At June 30, 2024
|
|
|
|
|
||||||||||||
Cost:
|
||||||||||||||||
At January 1, 2023
|
|
|
|
|
||||||||||||
Additions
|
|
|
|
|
||||||||||||
Exchange adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
At June 30, 2023
|
|
|
|
|
||||||||||||
Accumulated depreciation:
|
||||||||||||||||
At January 1, 2023
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Charge for the period
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Exchange adjustments
|
|
|
|
|
||||||||||||
At June 30, 2023
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net book value:
|
||||||||||||||||
At June 30, 2023
|
|
|
|
|
In thousands of USD
|
At June 30, 2024
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
Thereafter
|
|
|||
Total
|
|
In thousands of USD
|
Rights to electricity capacity
|
Patents, trademarks
and other
rights
|
Others
|
Total
intangible
assets
|
Goodwill
|
|||||||||||||||
Cost:
|
||||||||||||||||||||
At January 1, 2024
|
|
|
|
|
|
|||||||||||||||
Additions
|
|
|
|
|
|
|||||||||||||||
Acquired through the Norway Acquisition (Note 6(b))
|
|
|
|
|
|
|||||||||||||||
At June 30, 2024
|
|
|
|
|
|
|||||||||||||||
Accumulated amortization:
|
||||||||||||||||||||
At January 1, 2024
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||
Charge for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||
At June 30, 2024
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||
Net book value:
|
||||||||||||||||||||
At June 30, 2024
|
|
|
|
|
|
|||||||||||||||
Cost:
|
||||||||||||||||||||
At January 1, 2023
|
|
|
|
|
|
|||||||||||||||
Additions
|
|
|
|
|
|
|||||||||||||||
At June 30, 2023
|
|
|
|
|
|
|||||||||||||||
Accumulated amortization:
|
||||||||||||||||||||
At January 1, 2023
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||
Charge for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||
At June 30, 2023
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||
Net book value:
|
||||||||||||||||||||
At June 30, 2023
|
|
|
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Right-of-use assets
|
||||||||
- Land and buildings
|
|
|
||||||
Investment properties
|
||||||||
- Leasehold land
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Lease liabilities mature within 12 months
|
|
|
||||||
Lease liabilities mature over 12 months
|
|
|
||||||
Total lease liabilities*
|
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Depreciation expense of right-of-use assets
|
|
|
||||||
Interest expense*
|
|
|
||||||
Expense relating to variable payment leases
|
|
|
||||||
Expense relating to short-term leases
|
|
|
||||||
Loss on lease termination
|
|
|
||||||
Total
|
|
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Convertible debt (1)
|
|
|
||||||
Senior secured notes (2)
|
|
|
||||||
Total
|
|
|
(1) |
|
(2) |
|
In thousands of USD
|
||||
Balance as of January 1, 2024
|
|
|||
Issuance of warrant
|
|
|||
Change in fair value of derivative liabilities
|
|
|||
Balance as of June 30, 2024
|
|
At June 30, 2024
|
Initial recognition - At
May 30, 2024
|
|||||||
Share price
|
|
|
||||||
Dividend yield (%)
|
|
|
||||||
Expected volatility (%)
|
|
%
|
|
%
|
||||
Risk-free interest rate (%)
|
|
%
|
|
%
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Deposits from hosting customers
|
|
|
||||||
Payables for surtaxes
|
|
|
||||||
Accrued operating expenses
|
|
|
||||||
Payable to the former owners in Norway Acquisition (1)
|
|
|
||||||
Payables for staff-related costs
|
|
|
||||||
Restoration provision for leasehold land
|
|
|
||||||
Others
|
|
|
||||||
Total
|
|
|
(1) |
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Staff cost
|
||||||||
- Salaries, wages and other benefits
|
|
|
||||||
Share-based payment
|
|
|
||||||
Amortization
|
||||||||
- intangible assets
|
|
|
||||||
Depreciation
|
||||||||
- mining machines
|
|
|
||||||
- property, plant and equipment
|
|
|
||||||
- investment properties
|
|
|
||||||
- right-of-use assets
|
|
|
||||||
Electricity cost in operating mining machines
|
|
|
||||||
One-off incremental development expense
|
|
|
||||||
Cost of mining machines sold
|
|
|
||||||
Consulting service fee
|
|
|
||||||
Office expenses
|
|
|
||||||
Travel expenses
|
|
|
||||||
Insurance fee
|
|
|
||||||
Research and development technical service fees
|
|
|
||||||
Advertising expenses
|
|
|
||||||
Expenses of low-value consumables
|
|
|
||||||
Expenses of short-term leases
|
|
|
||||||
Logistic expenses
|
|
|
||||||
Expenses of variable payment lease
|
|
|
||||||
Others
|
|
|
||||||
Total cost of revenue, selling, general and administrative and research and development expenses
|
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Net gains on disposal of cryptocurrencies
|
|
|
||||||
Change in fair value of cryptocurrency-settled receivables and payables
|
|
|
||||||
Reversal / (recognition) of impairment loss of cryptocurrencies
|
(
|
)
|
|
|||||
Net losses on disposal of mining machines
|
|
(
|
)
|
|||||
Others
|
(
|
)
|
|
|||||
Total
|
|
(
|
)
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Changes in fair value of financial assets at fair value through profit or loss
|
|
|
||||||
Net gains / (losses) on disposal of property, plant and equipment
|
|
(
|
)
|
|||||
Government grants
|
|
|
||||||
Change in fair value of derivative liabilities
|
(
|
)
|
|
|||||
Others
|
(
|
)
|
(
|
)
|
||||
Total
|
(
|
)
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Interest income
|
|
|
||||||
Cryptocurrency transaction service fee
|
(
|
)
|
(
|
)
|
||||
Loss on foreign currency transactions
|
(
|
)
|
(
|
)
|
||||
Interest expense on borrowings
|
(
|
)
|
(
|
)
|
||||
Interest on lease liabilities
|
(
|
)
|
(
|
)
|
||||
Others
|
(
|
)
|
(
|
)
|
||||
Total
|
|
(
|
)
|
Period ended June 30, 2024
|
||||||||||||
Number of options
(’000)
|
Weighted average
exercise price per
share award (US$)
|
Weighted average
fair value per share
award (US$)
|
||||||||||
As at January 1, 2024
|
|
|
|
|||||||||
Granted during the period
|
|
|
|
|||||||||
Exercised during the period (1)
|
(
|
)
|
|
|
||||||||
Forfeited during the period
|
(
|
)
|
|
|
||||||||
As at June 30, 2024
|
|
|
|
|||||||||
Vested and exercisable at June 30, 2024
|
|
|
|
Period ended June 30, 2023
|
||||||||||||
Number of options
(’000)
|
Weighted average
exercise price per
share award (US$)
|
Weighted average
fair value per share
award (US$)
|
||||||||||
As at January 1, 2023
|
|
|
|
|||||||||
Granted during the period
|
|
|
|
|||||||||
Forfeited during the period
|
(
|
)
|
|
|
||||||||
As at June 30, 2023
|
|
|
|
|||||||||
Vested and exercisable at June 30, 2023
|
|
|
|
(1)
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Cost of revenue
|
|
|
||||||
General and administrative expenses
|
|
|
||||||
Research and development expenses
|
|
|
||||||
Selling expenses
|
|
|
||||||
Total
|
|
|
Periods ended June 30,
|
||||||||
2024
|
2023
|
|||||||
Dividend yield (%)
|
|
|
||||||
Expected volatility (%)
|
|
%
|
|
%
|
||||
Risk-free interest rate (%)
|
|
%
|
|
%
|
||||
Exercise multiple
|
|
|
Period ended June 30,
|
||||
2023
|
||||
Dividend yield (%)
|
|
|||
Expected volatility (%)
|
|
%
|
||
Risk-free interest rate (%)
|
|
%
|
||
Exercise multiple
|
|
• |
Dividend return is estimated by reference to the Group’s plan to distribute dividends in the near future. Currently, this is estimated to be
|
• |
Expected volatility is estimated based on the daily close price volatility of a number of comparable companies to the Group;
|
• |
Risk-free interest rate is based on the yield to maturity of U.S. treasury bills denominated in US$ at the option valuation date;
|
• |
Exercise multiple is based on empirical research on typical share award exercise behavior.
|
Class A Ordinary
Shares
|
Amount in USD
|
Class V Ordinary
Shares
|
Amount
in USD
|
|||||||||||||
At January 1, 2024, shares issued and outstanding
|
|
|
|
|
||||||||||||
Issuance of shares for exercise of share awards
|
|
|
|
|
||||||||||||
Issuance of shares for cash
|
|
|
|
|
||||||||||||
Issuance of shares as consideration for the Norway Acquisition
|
|
|
|
|
||||||||||||
At June 30, 2024, shares issued and outstanding
|
|
|
|
|
||||||||||||
At January 1, 2023, shares issued and outstanding
|
|
|
|
|
||||||||||||
Issuance of shares through Business Combination
|
|
|
|
|
||||||||||||
At June 30, 2023, shares issued and outstanding
|
|
|
|
|
(i) |
Share premium, which effectively represents the share subscription amount paid over the par value of the shares. The application of the share premium account is governed by Section 34 of the Companies Law, Cap. 22 (Law 3 of 1961, as
consolidated and revised) of the Cayman Islands as amended, supplemented or otherwise modified from time to time.
|
(ii) |
All foreign exchange differences arising from the translation of the financial statements of foreign operations.
|
(iii) |
The value of the conversion option of the equity component embedded in the convertible debt.
|
(iv) |
The accumulated share-based payment expenses.
|
(v) |
The value of options granted.
|
•
|
Safeguard the Group’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders,
mainly by pricing products and services commensurate with the level of risk
|
•
|
To support the Group’s stability and growth
|
•
|
To provide capital for the purpose of strengthening the Group’s risk management capability
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
Current income tax expenses
|
|
|
||||||
Deferred income tax benefit
|
(
|
)
|
(
|
)
|
||||
Total
|
|
(
|
)
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Deferred tax assets
|
||||||||
Net operating losses
|
|
|
||||||
Share-based payments
|
|
|
||||||
Deferred revenue
|
|
|
||||||
Property, plant and equipment, intangible assets and right-of-use assets
|
|
|
||||||
Total deferred tax assets
|
|
|
||||||
Set-off of deferred tax positions relate to income taxes levied by the same tax authority
|
(
|
)
|
(
|
)
|
||||
Deferred tax assets
|
|
|
||||||
Deferred tax liabilities
|
||||||||
Property, plant and equipment and intangible assets
|
(
|
)
|
(
|
)
|
||||
Set-off of deferred tax positions relate to income taxes levied by the same tax authority
|
|
|
||||||
Deferred tax liabilities
|
(
|
)
|
(
|
)
|
||||
Net deferred tax liabilities
|
(
|
)
|
(
|
)
|
In thousands of USD
|
January 1, 2024
|
Recognized in profit or loss
|
Acquired through the business combination (Note 6(b))
|
June 30, 2024
|
||||||||||||
Tax losses carried forward
|
|
(
|
)
|
|
|
|||||||||||
Share-based payments
|
|
|
|
|
||||||||||||
Deferred revenue
|
|
|
|
|
||||||||||||
Property, plant and equipment, intangible assets and right-of-use assets
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Net deferred tax liabilities
|
(
|
)
|
|
(
|
)
|
(
|
)
|
In thousands of USD
|
January 1, 2023
|
Recognized in profit or loss
|
June 30, 2023
|
|||||||||
Tax losses carried forward
|
|
(
|
)
|
|
||||||||
Share-based payments
|
|
|
|
|||||||||
Deferred revenue
|
|
|
|
|||||||||
Property, plant and equipment, intangible assets and right-of-use assets
|
(
|
)
|
|
(
|
)
|
|||||||
Net deferred tax liabilities
|
(
|
)
|
|
(
|
)
|
Tax Jurisdiction
|
Amount in
thousands of USD
|
Earliest year
of expiration if
not utilized
|
||||||
Singapore
|
|
Indefinitely
|
||||||
Hong Kong
|
|
Indefinitely
|
||||||
United States
|
|
Indefinitely
|
||||||
Norway
|
|
Indefinitely
|
||||||
Bhutan
|
|
|
||||||
Total
|
|
Periods ended June 30,
|
|||||
In thousands of USD
|
2024
|
2023
|
|||
Salaries and other emoluments
|
|
||||
Total
|
|
Name of related party
|
Relationship with the Group
|
|
Matrix Finance and Technologies Holding Group and its subsidiaries (“Matrixport Group”)
|
The Group’s controlling person is the co-founder and chairman of the board of directors of Matrixport Group and has significant influence over Matrixport Group.
|
In thousands of USD
|
At June 30, 2024
|
At December 31, 2023
|
||||||
Due from a related party
|
||||||||
- Trade receivables (2)
|
|
|
||||||
Total due from a related party
|
|
|
||||||
Due to a related party
|
||||||||
- Other payables (1)
|
|
|
||||||
Total due to a related party
|
|
|
||||||
Deferred revenue from a related party
|
||||||||
- Deferred revenue (2)
|
|
|
||||||
Total deferred revenue from a related party
|
|
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
- Provide service to a related party (2)
|
|
|
||||||
- Receive service from a related party
|
|
|
||||||
- Changes in fair value of financial assets at fair value through profit or loss
|
|
|
||||||
- Sales of mining machine peripherals to a related party
|
|
|
(1) |
|
(2) |
|
Periods ended June 30,
|
||||||||
In thousands of USD, except for the per share data
|
2024
|
2023
|
||||||
Loss attributable to ordinary equity shareholders of the Group
|
(
|
)
|
(
|
)
|
||||
Weighted average number of ordinary shares outstanding (thousand shares)
|
|
|
||||||
Loss per share, basic and diluted (In USD)
|
(
|
)
|
(
|
)
|
(1) |
|
Periods ended June 30,
|
||||||||
In thousands of USD
|
2024
|
2023
|
||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS
|
||||||||
Operating lease right-of-use assets and leasehold land obtained in exchange for operating lease liabilities
|
|
|
||||||
Liabilities assumed in connection with acquisition of property, plant and equipment and intangible assets
|
|
|
||||||
Prepayments realized as additions to property, plant and equipment
|
|
|
||||||
Settlement of pre-existing debtor relationship in the Norway Acquisition (Note 6(b))
|
|
|
||||||
Issuance of senior secured notes, Class A ordinary shares and share options in connection with the Norway Acquisition (Note 6(b))
|
|
|
||||||
Cancellation of repurchased treasury shares
|
|
|