Bitdeer Reports Unaudited Financial Results for the Second Quarter of 2023 and Operational Update
“In line with our dedication to creating additional value for our shareholders, we introduced a share repurchase program of up to
The majority of the Company’s revenue is derived from its three distinct business lines:
- Self-mining1 refers to cryptocurrency mining for the Company’s own account, which allows it to directly capture the high appreciation potential of cryptocurrency.
- Hash Rate Sharing currently primarily includes
Cloud Hash Rate , in which the Company offers hash rate subscription plans and shares mining income with customers under certain arrangements. - Hosting encompasses a one-stop mining machine hosting solution including deployment, maintenance, and management services for efficient cryptocurrency mining.
Financial Highlights
- Total revenue was
$93.8 million in the second quarter of 2023, compared to$89.2 million in the corresponding period of 2022, primarily due to the increased self-mining hash rate which led to an increase in revenue generated from the self-mining business, and the increased hosting capacity which led to an increase in revenue generated from hosting services. These increases were partially offset by a decrease in revenue generated fromCloud Hash Rate . - Net loss was
$40.4 million in the second quarter of 2023, compared to a net loss of$15.6 million in the corresponding period of 2022. Net loss in the second quarter of 2023 was primarily caused by the listing fee of$33.2 million related to the completed transaction withBlue Safari Group Acquisition Corp. inApril 2023 , and share-based payment expenses of$9.6 million . Net loss in the second quarter of 2022 was primarily driven by share-based payment expenses of$19.3 million . - Adjusted profit was
$2.3 million in the second quarter of 2023, compared to$3.6 million in the corresponding period of 2022. Adjusted profit/(loss) is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as profit/(loss) adjusted to exclude the listing fee and share-based payment expenses under IFRS 2. - Adjusted EBITDA was
$18.7 million in the second quarter of 2023, compared to$21.8 million in the corresponding period of 2022. Adjusted EBITDA is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude the listing fee and share-based payment expenses under IFRS 2. - Cash and cash equivalents were
$130.2 million as ofJune 30, 2023 .
Operational Highlights
Metrics | Three months ended |
|
2023 | 2022 | |
Total hash rate under management (EH/s) | 18.8 | 10.5 |
- Proprietary hash rate | 6.2 | 4.2 |
• Self-mining | 3.8 | 2.1 |
• |
1.6 | 2.1 |
• Delivered but not yet energized | 0.8 | - |
- Hosting | 12.6 | 6.3 |
Mining machines under management | 199,000 | 119,000 |
- Self-owned | 70,000 | 54,000 |
- Hosted | 129,000 | 65,000 |
Aggregate electrical capacity (MW) | 795 | 522 |
Bitcoin mined (self-mining only) | 758 | 521 |
- Total hash rate under management, which consists of proprietary hash rate and hosting hash rate, was 18.8 EH/s as of
June 30, 2023 .
- Proprietary hash rate was 6.2 EH/s as of
June 30, 2023 , with 4.6 EH/s allocated to the Company’s self-mining business and 1.6 EH/s to itsCloud Hash Rate business. - Hosting hash rate was 12.6 EH/s as of
June 30, 2023 .
- Proprietary hash rate was 6.2 EH/s as of
- Self-mining business mined 758 Bitcoins in the second quarter of 2023, representing a 45.5% increase as compared to 521 Bitcoins in the corresponding period of 2022, due to the increase in hash rate allocated to the Company’s self-mining business.
- Mining machines under management was approximately 199,000 ASIC mining machines, including approximately 70,000 of the Company’s own mining machines for its self-mining business and
Cloud Hash Rate business, and approximately 129,000 mining machines for its hosting business. - Aggregate electrical capacity was 795MW across five mining datacenters as of
June 30, 2023 , representing a 52.3% increase from 522MW as ofJune 30, 2022 . The Company also has another 100MW of capacity under construction inBhutan and 175MW under construction inNorway as ofJune 30, 2023 . The datacenter to be constructed inBhutan is expected to commence operations in the third quarter of 2023, and the expansion to the Company’s Tydal mining facility inNorway is expected to be completed in 2025. - Total power usage was approximately 1,136,000 MWH across the Company’s five mining datacenters in the second quarter of 2023.
- Average cost of electricity was approximately
$41 /MWH in the second quarter of 2023. - Average miner efficiency was 33.4 J/TH as of
June 30, 2023 .
Financial Results
Three months ended |
||||
2023 | 2022 | |||
Revenue by business line (US$’000) | ||||
Self-mining | 21,563 | 17,647 | ||
18,023 | 34,907 | |||
General Hosting | 27,767 | 30,786 | ||
Membership Hosting | 23,948 | - | ||
Other | 2,515 | 5,838 | ||
Total revenue (US$’000) | 93,816 | 89,178 | ||
Cost of revenue (US$’000) | ||||
Electricity cost in operating mining machines | (49,672 | ) | (35,097 | ) |
Depreciation | (18,352 | ) | (14,969 | ) |
Share-based payment expenses | (1,145 | ) | (2,119 | ) |
Other | (8,490 | ) | (9,350 | ) |
Total cost of revenue (US$’000) | (77,659 | ) | (61,535 | ) |
Gross profit (US$’000) | 16,157 | 27,643 |
Revenue
Total revenue was
- Self-mining revenue was
$21.6 million , compared to$17.6 million in the corresponding period of 2022, primarily due to the increase in self-mining hash rate during the quarter. Cloud Hash Rate revenue was$18.0 million , compared to$34.9 million in the corresponding period of 2022, primarily due to changes in the amount of activeCloud Hash Rate orders.- General Hosting revenue was
$27.8 million , compared to$30.8 million in the corresponding period of 2022, primarily because the capacity of general hosting was modestly lower in the second quarter of 2023 compared to the same period of 2022. - Membership Hosting revenue was
$24.0 million , compared to nil in the corresponding period of 2022, primarily due to revenue generated from the Company’sNorth America mining datacenter, which began to deliver capacity in the second half of 2022.
Cost of Revenue
Cost of revenue was
Gross Profit
Gross profit was
Operating Expenses
The sum of below operating expenses in the second quarter of 2023 was
- Selling expenses were
$1.9 million , compared to$2.5 million in the corresponding period of 2022, primarily due to decreases in share-based compensation to sales personnel. - General and administrative expenses were
$16.5 million , compared to$21.9 million in the corresponding period of 2022, primarily due to decreases in share-based compensation and staff costs to general and administrative personnel. - Research and development expenses were
$6.4 million , compared to$8.7 million in the corresponding period of 2022, primarily due to decreases in share-based compensation to research and development personnel.
Net Loss
Net loss was
Adjusted Profit (Non-IFRS)
Adjusted profit was
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was
Liquidity
As of
Recent Developments
On
Construction of the Company’s Gedu mining datacenter in
About
Bitdeer is a world-leading technology company for the cryptocurrency mining community headquartered in
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
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 listing fee and share-based payment expenses under IFRS 2, and defines adjusted profit/(loss) as profit/(loss) adjusted to exclude the 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
Three months ended |
Six months ended |
|||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
US$ | US$ | US$ | US$ | |||||||||
(in thousands) | ||||||||||||
Adjusted EBITDA | ||||||||||||
Loss for the periods | (40,360 | ) | (15,607 | ) | (49,827 | ) | (25,194 | ) | ||||
Add: | ||||||||||||
Depreciation and amortization | 18,934 | 15,106 | 36,223 | 29,251 | ||||||||
Income tax (benefit)/ expenses | (1,835 | ) | 2,506 | (2,807 | ) | 7,975 | ||||||
Interest (income)/ expense, net | (741 | ) | 583 | (1,385 | ) | 1,729 | ||||||
Listing fee | 33,151 | - | 33,151 | - | ||||||||
Share-based payment expenses | 9,554 | 19,251 | 21,847 | 54,425 | ||||||||
Adjusted EBITDA | 18,703 | 21,839 | 37,202 | 68,186 | ||||||||
Adjusted Profit | ||||||||||||
Loss for the periods | (40,360 | ) | (15,607 | ) | (49,827 | ) | (25,194 | ) | ||||
Add: | ||||||||||||
Listing Fee | 33,151 | - | 33,151 | - | ||||||||
Share-based payment expenses | 9,554 | 19,251 | 21,847 | 54,425 | ||||||||
Adjusted Profit | 2,345 | 3,644 | 5,171 | 29,231 |
Unaudited Consolidated Statements of Financial Position
As of |
As of |
||||
2023 |
2022 | ||||
US$ | US$ | ||||
(in thousands) | |||||
ASSETS | |||||
Cash and cash equivalents | 130,203 | 231,362 | |||
Cryptocurrencies | 10,336 | 2,175 | |||
Trade receivables | 15,440 | 18,304 | |||
Amounts due from a related party | 308 | 397 | |||
Mining machines | 47,295 | 27,703 | |||
Prepayments and other assets | 129,711 | 59,576 | |||
Financial assets at fair value through profit or loss | 33,486 | 60,959 | |||
Restricted cash | 9,477 | 11,494 | |||
Right-of-use assets | 59,754 | 60,082 | |||
Property, plant and equipment | 139,336 | 138,636 | |||
Investment properties | 34,387 | 35,542 | |||
Intangible assets | 5,064 | 322 | |||
Deferred tax assets | 4,216 | 4,857 | |||
TOTAL ASSETS | 619,013 | 651,409 | |||
LIABILITIES | |||||
Trade payables | 16,483 | 15,768 | |||
Other payables and accruals | 29,913 | 22,176 | |||
Amounts due to a related party | 127 | 316 | |||
Income tax payables | 562 | 657 | |||
Deferred revenue | 155,572 | 182,297 | |||
Borrowings | 29,988 | 29,805 | |||
Lease liabilities | 70,665 | 70,425 | |||
Deferred tax liabilities | 7,239 | 11,626 | |||
TOTAL LIABILITIES | 310,549 | 333,070 | |||
NET ASSETS | 308,464 | 318,339 | |||
EQUITY | |||||
Share capital* | - | - |
|||
(Accumulated deficit)/ retained earnings | (43,024 | ) | 6,803 | ||
Reserves | 351,488 | 311,536 | |||
TOTAL EQUITY | 308,464 | 318,339 | |||
* After giving the effects of the reverse recapitalization completed in |
|||||
Unaudited Consolidated Statements of Operations and Comprehensive Loss
Three months ended |
Six months ended |
|||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
US$ | US$ | US$ | US$ | |||||||||
(in thousands) | ||||||||||||
Revenue | 93,816 | 89,178 | 166,403 | 179,619 | ||||||||
Cost of revenue | (77,659 | ) | (61,535 | ) | (136,754 | ) | (110,622 | ) | ||||
Gross profit | 16,157 | 27,643 | 29,649 | 68,997 | ||||||||
Selling expenses | (1,879 | ) | (2,457 | ) | (4,315 | ) | (6,303 | ) | ||||
General and administrative expenses | (16,467 | ) | (21,943 | ) | (32,471 | ) | (52,686 | ) | ||||
Research and development expenses | (6,433 | ) | (8,659 | ) | (12,727 | ) | (19,743 | ) | ||||
Listing fee | (33,151 | ) | - | (33,151 | ) | - | ||||||
Other operating expenses | (995 | ) | (2,709 | ) | (100 | ) | (2,791 | ) | ||||
Other net gain | 1,468 | 18 | 1,608 | 1,130 | ||||||||
Loss from operations | (41,300 | ) | (8,107 | ) | (51,507 | ) | (11,396 | ) | ||||
Finance expenses | (895 | ) | (4,994 | ) | (1,127 | ) | (5,823 | ) | ||||
Loss before taxation | (42,195 | ) | (13,101 | ) | (52,634 | ) | (17,219 | ) | ||||
Income tax benefit / (expenses) | 1,835 | (2,506 | ) | 2,807 | (7,975 | ) | ||||||
Loss for the period | (40,360 | ) | (15,607 | ) | (49,827 | ) | (25,194 | ) | ||||
Other comprehensive loss | ||||||||||||
Loss for the period | (40,360 | ) | (15,607 | ) | (49,827 | ) | (25,194 | ) | ||||
Other comprehensive income for the period | ||||||||||||
Item that may be reclassified to profit or loss | ||||||||||||
- Exchange differences on translation of financial statements | 21 | - | 9 | - | ||||||||
Other comprehensive income for the period, net of tax | 21 | - | 9 | - | ||||||||
Total comprehensive loss for the period | (40,339 | ) | (15,607 | ) | (49,818 | ) | (25,194 | ) | ||||
Loss per share | ||||||||||||
Basic | (0.36 | ) | (0.14 | ) | (0.45 | ) | (0.23 | ) | ||||
Diluted | (0.36 | ) | (0.14 | ) | (0.45 | ) | (0.23 | ) | ||||
Weighted average number of shares outstanding (thousand shares) | ||||||||||||
Basic | 110,916 | 108,681 | 109,805 | 108,681 | ||||||||
Diluted | 110,916 | 108,681 | 109,805 | 108,681 |
Contacts
Investor Relations
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825
Public Relations
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056
_________________
1 Self-mining formerly known as “Proprietary mining” as disclosed in the Company’s most recent annual report on Form 20-F and registration statement on Form F-4.
Source: Bitdeer Technologies Group