news.bitcoin.com
Bitdeer Technologies Group reported a $531.9 million net loss for Q4 2024 as it invested heavily in proprietary mining hardware development, including $243.4 million in payments to chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC), while targeting a self-mining hashrate of 40 exahash per second (EH/s) by late 2025.
Strategic ASIC Push Drives Bitdeer’s $532M Q4 Loss
The Singapore-based blockchain firm’s Q4 revenue fell 40% year-over-year to $69.0 million, driven by reduced income across its cloud, hosting, and self-mining segments. Gross profit plummeted to $5.1 million from $27.0 million in Q4 2023, with management attributing the declines to Bitcoin’s April 2024 halving event and reallocated resources toward its application-specific integrated circuit (ASIC) technology roadmap. Operating expenses surged to $42.5 million, including $22.9 million in research and development costs tied to its Sealminer mining chips.
Bitdeer paid TSMC $190.6 million for mass production of its SEAL02 chips and $52.8 million for SEAL03 tapeouts in Q4, part of a strategy to vertically integrate its operations. The company aims to deploy 40 EH/s of self-mining capacity by Q4 2025 using its proprietary hardware, up from 8.7 EH/s currently. “Owning and deploying our own mining ASICs is an integral part of our full vertical integration strategy,” said Chief Business Officer Matt Kong, noting strong demand for its newly commercialized Sealminer machines.
Operational data showed a 64% drop in self-mined bitcoin (469 BTC vs. 1,299 BTC in Q4 2023), reflecting reduced mining economics post-halving. Hosting revenue collapsed to $8.5 million from $25.2 million year-over-year as customers scaled back older mining rigs. Despite this, Bitdeer held 594 BTC ($77.5 million) as of December 31 and bolstered its cash reserves to $476.3 million through convertible note issuances.
The company’s global power capacity now exceeds 2.6 gigawatts (GW), with over 1 GW slated for activation in 2025. Projects in Norway, Ohio, and Bhutan are expected to support its mining and high-performance computing ventures. Bitdeer also highlighted progress on its 3rd and 4th-generation ASIC bitcoin mining chips, touting potential leadership in energy efficiency.
Bitdeer’s $531.9 million net loss included $479.8 million in non-cash charges from fair value adjustments on convertible notes and warrants. Adjusted EBITDA, excluding one-time items, was negative $3.8 million. Executives emphasized long-term gains from ASIC investments, though analysts may scrutinize near-term cash burn ahead of planned 2025 expansions.