Bitdeer Reports 50% Increase in Gross Profits Amid Bitcoin Mining Expansion

Despite experiencing a rise in hashrate, the Bitcoin mining company faced a net loss of $17.7 million during the second quarter of 2024.

Financial Highlights

According to Bitdeer’s earnings report released on August 12, the company achieved a gross profit of $24.4 million for Q2 2024, up from $16.2 million, representing a year-over-year growth of approximately 50%.

• Self-mining capacity increased from 3.8 exahashes per second (EH/s) to 7.3 EH/s.
• The global Bitcoin network hashrate stands at 677.43 EH/s, nearly double that of the previous year.

Operational Insights

Matt Kong, the Chief Business Officer at Bitdeer, stated that these results were achieved amidst significant growth in the global hashrate and the halving event that took place in April 2024. According to CoinWarz data, the Bitcoin network’s hashrate has experienced substantial increases.

Kong noted that the rise in hashrate is attributed to the deployment of Bitdeer’s proprietary SEALMINER mining equipment. He mentioned, “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.”

Financial Challenges

The net loss of $17.7 million recorded for the quarter can be largely attributed to capital expenditures for mining equipment and non-cash expenses related to the fair value of Tether warrants. However, this marks an improvement compared to the net loss of $40.4 million reported in the same quarter last year.

Recent Developments

In May 2024, Bitdeer announced a private financing round worth $150 million, led by Tether International Limited, the issuer of the Tether (USDT) stablecoin. The funding included $100 million raised through share issuance and up to $50 million from a warrant allowing Tether to purchase additional shares.

Additionally, in June, Bitdeer completed an acquisition of chip designer Desiweminer in an all-stock transaction aimed at improving its product development efforts. Kong highlighted that the Desiweminer team has been integrated into Bitdeer’s existing design operations in Singapore.