Bitdeer Reported Unaudited Financial Results For The Third Quarter Of 2024

Q3 2024 Financial Highlights

• Total revenue was US$62.0 million, compared to US$87.3 million in Q3 2023.
• Cost of revenue was US$59.2 million, compared to US$66.2 million in Q3 2023.
• Gross profit was US$2.8 million, compared to US$21.1 million in Q3 2023.
• Net loss was US$50.1 million, compared to US$1.8 million in Q3 2023.
• Adjusted EBITDA 1 was negative US$8.5 million, compared to US$28.0 million in Q3 2023.
• Cash and cash equivalents were US$291.3 million as of September 30, 2024.

Management Commentary

“This quarter marked a foundational period for Bitdeer, focused on the advancements of our key technological and strategic initiatives,” stated Matt Kong, Chief Business Officer at Bitdeer.“In our ASICs business, we made substantial progress in the commercialization of our SEALMINER mining rigs that will help diversify our revenue streams and accelerate the growth of our self-mining operations. For SEALMINER A1, the first sample batch was successfully energized and production of 3.7 EH/s is expected to be completed and installed into our datacenters in Texas and Norway in phases from December through Q1 2025 for the time being. Furthermore, in October, we successfully launched our second generation SEALMINER A2 mining machine series equipped with our SEAL02 chip. The A2 series includes both an air-cooling and a hydro-cooling model and boasts a hashrate of 226 TH/s and 446 TH/s, with a power efficiency ratio of 16.5 J/TH. Further, in October, we commenced mass production of our SEALMINER A2 series and the first production run is expected to deliver 18 EH/s, which will be used for self-mining and selling to external customers. Notably, SEALMINER A2 will be a significant milestone as we enter this multi-billion dollar market. We are already engaged in discussion with a number of potential customers, and early demand is promising, indicating strong interest in our cutting-edge technology and the industry's desire for supply chain diversification.”

Mr. Kong continued,“In our Cloud HPC and AI business, our NVIDIA DGX SuperPOD system at our datacenter in Singapore successfully achieved approximately 98% utilization in September, and we expanded a pilot program in Canada. Additionally, we're actively exploring ways to leverage our substantial 2.5 GW power capacity across three continents to meet the growing demand from HPC and AI datacenters. TLM Group successfully completed their feasibility assessment of our U.S. sites and confirmed the suitability of several of them for Tier 3 HPC and AI datacenters. These sites have abundant power available in a short time frame, low-latency fiber and plentiful water resources. We have commenced discussions with potential partners and end users for these sites and are actively collaborating with leading data center developers and advisors to secure long-term partnerships and strategic opportunities that can position Bitdeer to play a pivotal role in the rapidly evolving HPC and AI ecosystem. Finally, our global infrastructure expansion continues to progress, with projects in Norway, Ohio, and Texas, and Bhutan set to bring online over an estimated 1.1 GW of new power capacity in the coming year.”

Mr. Kong added,“Regarding our third quarter financial results, the year-over-year decrease in revenue and adjusted EBITDA was primarily due to the impact of the 2024 halving, increased global hash rate, decreased hosting revenue, and increased R&D costs related to the one-time development expenses of the SEAL02 chip. The decrease in hosting revenue was mainly caused by two factors. First, the conversion of 100 MW of hosting capacity at our Texas facility to hydro-cooling, which is expected to be fully renovated and equipped with SEALMINER hydro-cooled mining rigs for our self-mining by the first quarter of 2025. Second, after the halving in April 2024, some customers stopped hosting their less efficient miners. This freed up capacity is currently being replenished by the new hosting mining rigs. These negative impacts were partially offset by slightly higher average self-mining hash rates and higher Bitcoin prices in the quarter. We ended the quarter in a strong financial position with $291.3 million in cash and cash equivalents. In summary, we are on the verge of achieving many exciting milestones, and we remain committed on continuing to execute the SEALMINER roadmap, expanding our self-mining hash rate, and leveraging our industry-leading global 2.5 GW power portfolio.”

Operational Summary

Power Infrastructure Summary

Financial MD&A

All variances are current quarter compared to the same quarter last year. All figures in this section are rounded.

Revenue

• Total revenue was US$62.0 million vs. US$87.3 million.
• Self-mining revenue was US$31.5 million vs. US$30.1 million, primarily due to the increase in the average self-mining hashrate for the quarter by 27.9% to 7.8 EH/s from 6.1 EH/s last year and higher year-over-year Bitcoin prices, offset by effect of the April 2024 halving and higher global network hashrate.
• Cloud Hash Rate revenue was US$7.1 million vs. US$15.6 million. The decline was primarily due to expiration of long-term Cloud Hashrate contracts and subsequent reallocation of machines to Self-mining, and the decrease in electricity subscription due to lower margins for customers caused by the April 2024 Halving.
• General Hosting revenue was US$9.6 million vs. US$22.2 million. The decline was primarily due to the conversion of 100 MW of hosting capacity to hydro-cooling capacity for self-mining and certain hosting customers removing older and less efficient rigs following the April 2024 Halving as a result of reduced mining economics.
• Membership Hosting revenue was US$9.9 million vs. US$16.0 million, down year-over-year. Similar to general hosting, the decline was primarily driven by customers reducing the operation for these older and less efficient rigs following the April 2024 Halving as a result of reduced mining economics.
  

Cost of Revenue

• Cost of revenue was US$59.2 million vs US$66.2 million. The decrease was primarily driven by lower mining rigs depreciation from becoming fully depreciated and the decrease of power usage along with the reduced hosted mining rigs.
  

Gross Profit and Margin

• Gross profit was US$2.8 million vs. US$21.1 million.
• Gross margin was 4.5% vs. 24.2%.

Operating Expenses

• The sum of the operating expenses below was US$42.9 million vs. US$27.3 million.
  • Selling expenses were US$2.2 million vs. US$1.9 million, primarily due to increased marketing expenses.
  • General and administrative expenses were US$15.8 million vs. US$16.8 million, primarily due to decreases in share-based compensation, partially offset by an increase in staff costs to general and administrative personnel.
  • Research and development expenses were US$24.8 million vs. US$8.5 million, primarily due to a US$13.4 million one-off incremental development expense related to the SEAL02 chip, higher R&D compensation costs and amortization expenses of intangible assets relating to the acquisition of FreeChain.

Other Net Loss

• In Q3 2024, we recorded US$14.7 million other net loss primarily due to the non-cash expense of fair value change of derivative liabilities, which are the US$28.8 million of loss on fair value change for the convertible note issued, partially offset by the US$14.3 million of gain on fair value change for Tether warrants.
  

Net Loss

• Net loss was US$50.1 million vs. US$1.8 million.
  

Adjusted Profit / (Loss) (Non-IFRS) 4

• Adjusted loss was US$26.2 million vs. adjusted profit of US$10.5 million. The change was primarily due to the year-over-year revenue decline, lower gross profit margins and higher operating expenses as described above.
  

Adjusted EBITDA (Non-IFRS)

• Adjusted EBITDA was negative US$8.5 million vs. US$28.0 million. The decrease was primarily due to the year-over-year revenue decline, lower gross profit margins and higher operating expenses as described above.
  

Cash Flows

• Net cash used for operating activities was US$90.7 million.
• Net cash generated from investing activities was US$10.2 million including the proceeds from disposal of cryptocurrencies of US$39.9 million received from the principal businesses.
• Net cash generated from financing activities was US$168.1 million, primarily driven by the proceeds from our convertible note issuance in August.
  

Capital Expenditures

• Capital expenditures for PPE, intangible assets and mining machines were US$30.1 million vs. US$13.8 million, primarily driven by the construction in Jigmeling, Tydal, and Hydro-cooling conversion in Texas.
  

Liquidity

• As of September 30, 2024, the Company held US$291.3 million in cash and cash equivalents, US$39.7 million in cryptocurrencies and US$92.7 million in borrowing.
  

Further information regarding the Company's third quarter 2024 financial and operations results can be found on the SEC's website and the Company's Investor Relations website .

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 / 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.

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1“Adjusted EBITDA” is defined 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.
2 Indicative timing. All timing references are to calendar quarters and years.
3 Figures may not add due to rounding.
4“Adjusted profit/(loss)” is defined as profit/(loss) adjusted to exclude the changes in fair value of derivative liabilities, listing fee and share-based payment expenses under IFRS 2.

* Amount less than US$1,000
[1] Considering the acquisition of FreeChain Inc. has occurred on September 13, 2024, these are preliminary disclosures as the effects of the purchase price allocation accounting is in progress and in the measurement period, as described in IFRS 3.

[2] Included nil and approximately US$17.2 million generated from hosting service provided to a related party for the three months and nine months ended September 30, 2024.

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 / (loss), for the three and nine months ended September 30, 2024 and 2023.

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