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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 

FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of May 2023

Commission file number: 001-41687
 
 
 BITDEER TECHNOLOGIES GROUP
 
 
 08 Kallang Avenue
Aperia tower 1, #09-03/04
Singapore 339509
(Address of Principal Executive Offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.  Form 20-F  ☒         Form 40-F  ☐
 
EXHIBITS
 
Exhibit No.
Description
   
Press Release – Bitdeer Reports Unaudited Financial Results for the First Quarter of 2023 and Operational Update

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Bitdeer Technologies Group
 
By:
/s/ Linghui Kong
 
Name:
Linghui Kong
 
Title:
Chief Executive Officer
     
Date: May 15, 2023
    
 

Exhibit 99.1


Bitdeer Reports Unaudited Financial Results for the First Quarter of

2023 and Operational Update
 
SINGAPORE – May 15, 2023 – Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for the cryptocurrency mining community, today announced its unaudited financial results for the first quarter ended March 31, 2023.
 
Linghui Kong, Chief Executive Officer of Bitdeer, commented, “We continued to deliver robust performance and maintained a sufficient cash flow during the first quarter, despite macroeconomic and crypto-market headwinds. While we recorded a net loss of $9.5 million, our non-IFRS adjusted profit was $2.8 million and non-IFRS adjusted EBITDA was $18.5 million. At the operational level, we proactively optimized our cost base by locking up a competitive price for 150MW electricity capacity in our Rockdale mining datacenter effectively until the end of 2023. Moreover, we further invested in our future growth by expanding our fleet of mining machines and increasing our proprietary hash rate from 4.1 EH/s as of December 31, 2022 to 5.7 EH/s as of March 31, 2023.”

“Looking ahead, we are excited to partner with Druk Holding & Investments to jointly develop a carbon-free digital asset mining datacenter in the Kingdom of Bhutan. This collaboration further expands our global footprint and complements our existing datacenters in Northern Europe and North America. In preparation for the partnership launch in May 2023, we have ordered 30,000 new mining machines to be deployed onsite, thus laying a solid foundation for the project’s success.”

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.
 
First Quarter 2023 Financial Highlights
 
•
Total revenue was $72.6 million in the first quarter of 2023, compared to $90.4 million in the corresponding period of 2022, primarily due to the year-over-year changes in Bitcoin prices leading to a decrease in revenue generated from self-mining and Cloud Hash Rate, partially offset by an increase in revenue generated from hosting services.
 
•
Net loss was $9.5 million in the first quarter of 2023, compared to a net loss of $9.6 million in the corresponding period of 2022. The net loss in each period was primarily caused by share-based expenses, which was $12.3 million in the first quarter of 2023 and $35.2 million in the first quarter of 2022.
 
•
Adjusted profit was $2.8 million in the first quarter of 2023, compared to $25.6 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 share-based payment expenses under IFRS 2.

¹Self-mining formerly known as “Proprietary mining” as disclosed in F-4/20-F filings.

 
 

•
Adjusted EBITDA was $18.5 million in the first quarter of 2023, compared to $46.3 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 share-based payment expenses under IFRS 2.

•
Cash and cash equivalents were $173.9 million as of March 31, 2023.
 
First Quarter 2023 Operational Highlights
 
•
Total managing hash rate, which consists of proprietary hash rate and hosting hash rate, was 18.3 EH/s as of March 31, 2023.
 

 •
Proprietary hash rate was 5.7 EH/s as of March 31, 2023, with 3.9 EH/s allocated to the Company’s self-mining business and 1.8 EH/s to its Cloud Hash Rate business.
 

 •
Hosting hash rate was 12.6 EH/s as of March 31, 2023.
 
•
Self-mining business mined 552 Bitcoins in the first quarter of 2023, as compared to 538 Bitcoins in the corresponding period of 2022.
 
•
Total deployed fleet was approximately 196,000 ASIC mining machines, including approximately 67,000 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 electricity capacity was 795MW across five mining datacenters as of March 31, 2023, representing a 90.6% increase from 417MW as of March 31, 2022. The Company also has another 100MW of capacity under construction in Bhutan. The datacenter to be constructed in Bhutan is expected to commence operation in the third quarter of 2023.
 
•
Total power usage was approximately 992,700 MWH across the Company’s five mining datacenters in the first quarter of 2023.
 
First Quarter 2023 Financial Results
 
Revenue
 
Total revenue was $72.6 million, compared to $90.4 million in the corresponding period of 2022.
 
•
Self-mining revenue was $13.2 million, compared to $23.4 million in the corresponding period of 2022, primarily due to year-over-year changes in Bitcoin prices during the quarter.
 
•
Revenue from Cloud Hash Rate was $18.0 million, compared to $40.0 million in the corresponding period of 2022, primarily due to changes in the amount of active Cloud Hash Rate orders.
 
•
Revenue from General Hosting was $22.1 million, compared to $22.2 million in the corresponding period of 2022, remaining stable.
 

¹Self-mining formerly known as “Proprietary mining” as disclosed in F-4/20-F filings.
 
 

•
Revenue from Membership Hosting was $16.5 million, compared to nil in the corresponding period of 2022, primarily due to revenue generated from the Company’s North America mining datacenter, which began to deliver capacity in the second half of 2022.
 
Gross Profit
 
Gross profit was $13.5 million in the first quarter of 2023, representing a 18.6% gross margin, compared to $41.4 million, or a 45.7% gross margin, in the corresponding period of 2022, mainly due to a change in total revenue and an increase in electricity and depreciation costs attributable to the expansion of the Company’s mining datacenters.
 
Operating Expenses
 
The sum of below operating expenses in the first quarter of 2023 was $24.7 million, as compared to $45.7 million in the corresponding period of 2022.
 
•
Selling expenses were $2.4 million, compared to $3.8 million in the corresponding period of 2022, primarily due to decreases in share-based compensation to sales personnel.
 
•
General and administrative expenses were $16.0 million, compared to $30.7 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 $6.3 million, compared to $11.1 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 $9.5 million, compared to a net loss of $9.6 million in the corresponding period of 2022.
 
Adjusted Profit (Non-IFRS)
 
Adjusted profit was $2.8 million, compared to $25.6 million in the corresponding period of 2022.
 
Adjusted EBITDA (Non-IFRS)
 
Adjusted EBITDA was $18.5 million, compared to $46.3 million in the corresponding period of 2022, primarily due to a decrease in revenue and an increase in electricity costs.
 
Liquidity
 
As of March 31, 2023, the Company held $173.9 million in cash and cash equivalents, as compared to $231.4 million as of December 31, 2022. Use of cash included purchase of mining fleets of $18.7 million, prepayment to mining fleets suppliers of $22.5 million, and deposits to electricity suppliers of $37.6 million.
 
Recent Developments
 
On May 3, 2023, the Company and Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, announced a strategic partnership to develop environmentally sustainable, carbon-free digital asset mining operations in the Kingdom of Bhutan.
 
 
 

Recently, management has been exploring means to mitigate risks related to potential Bitcoin price volatility which may include hedging or other options. At the same time, management is considering introducing a dividend policy and share buyback programs to reward and create more value for the Company’s shareholders.
 
About Bitdeer Technologies Group
 
Bitdeer is a world-leading technology company for the cryptocurrency mining community headquartered in Singapore. Bitdeer has committed to providing comprehensive digital asset mining solutions for its customers. Bitdeer handles complex processes involved in mining such as miner procurement, transport logistics, mining datacenter design and construction, mining machine management and daily operations. Bitdeer has mining datacenters deployed in the United States and Norway. To learn more, visit https://ir.bitdeer.com/.
 
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.
 
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 share-based payment expenses under IFRS 2, and defines adjusted profit/(loss) as profit/(loss) adjusted to exclude 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 months ended March 31, 2023 and 2022.
 
 
 

 
  
Three months ended March 31,
  
 
  
2023
    
2022
  
 
  
US$
    
US$
  
 
  
(in thousands)
  
Adjusted EBITDA
            
Loss for the periods
    
(9,467
)
    
(9,587
)
Add：
                
Depreciation and amortization
    
17,289
      
14,145
  
Income tax expenses/(benefit)
    
(972
)
    
5,469
  
Interest expense/(income), net
    
(644
)
    
1,146
  
Share-based payment expenses
    
12,293
      
35,174
  
Adjusted EBITDA
    
18,499
      
46,347
  
 
                
 
                
Adjusted Profit
                
Loss for the periods
    
(9,467
)
    
(9,587
)
Add：
                
Share-based payment expenses
    
12,293
      
35,174
  
Adjusted Profit
    
2,826
      
25,587
  

Consolidated Statements of Financial Position
   
As of March 31,
    
As of December 31,
  
 
  
2023
    
2022
  
 
  
US$
    
US$
  
 
  
(in thousands)
  
ASSETS
            
Cash and cash equivalents
    
173,897
      
231,362
  
Cryptocurrencies
    
4,537
      
2,175
  
Trade receivables
    
15,250
      
18,304
  
Amounts due from a related party
    
311
      
397
  
Mining machines
    
41,829
      
27,703
  
Prepayments and other assets
    
126,902
      
59,576
  
Financial assets at fair value through profit or loss
    
30,848
      
60,959
  
Restricted cash
    
11,494
      
11,494
  
Right-of-use assets
    
58,943
      
60,082
  
Property, plant and equipment
    
132,706
      
138,636
  
Investment properties
    
35,645
      
35,542
  
Intangible assets
    
286
      
322
  
Deferred tax assets
    
4,123
      
4,857
  
TOTAL ASSETS
    
636,771
      
651,409
  
 
                
LIABILITIES
                
Trade payables
    
16,084
      
15,768
  
Other payables and accruals
    
22,300
      
22,176
  
Amounts due to a related party
    
21
      
316
  
Income tax payables
    
642
      
657
  
Deferred revenue
    
167,633
      
182,297
  
Borrowings
    
29,895
      
29,805
  
Lease liabilities
    
69,597
      
70,425
  
Deferred tax liabilities
    
9,446
      
11,626
  
TOTAL LIABILITIES
    
315,618
      
333,070
  
 
                
NET ASSETS
    
321,153
      
318,339
  
 
                
EQUITY
                
Share capital
    
1
      
1
  
Retained earnings/(accumulated deficit)
    
(2,664
)
    
6,803
  
Reserves
    
323,816
      
311,535
  
TOTAL EQUITY
    
321,153
      
318,339
  
 
 
 

Consolidated Statements of Operations and Comprehensive Loss
 
 
  
Three months ended March 31,
  
 
  
2023
    
2022
  
 
  
US$
    
US$
  
 
  
(in thousands)
  
Revenue
    
72,587
      
90,441
  
Cost of revenue
    
(59,095
)
    
(49,087
)
Gross profit
    
13,492
      
41,354
  
Selling expenses
    
(2,436
)
    
(3,846
)
General and administrative expenses
    
(16,004
)
    
(30,743
)
Research and development expenses
    
(6,294
)
    
(11,084
)
Other operating income/(expenses)
    
895
      
(82
)
Other net gain
    
140
      
1,112
  
Loss from operations
    
(10,207
)
    
(3,289
)
Finance expenses
    
(232
)
    
(829
)
Loss before taxation
    
(10,439
)
    
(4,118
)
Income tax benefit/(expenses)
    
972
      
(5,469
)
Loss for the period
    
(9,467
)
    
(9,587
)
 
                
Other comprehensive loss
                
Loss for the period
    
(9,467
)
    
(9,587
)
Other comprehensive loss for the period
                
Item that may be reclassified to profit or loss
                
-  Exchange differences on translation of financial statements
    
(12
)
    
-
  
Other comprehensive loss for the period, net of tax
    
(12
)
    
-
  
Total comprehensive loss for the period
    
(9,479
)
    
(9,587
)
Loss per share
                
Basic
    
(0.00
)
    
(0.00
)
Diluted
    
(0.00
)
    
(0.00
)
Weighted average number of shares outstanding (thousand shares)
                
Basic
    
12,662,126
      
12,662,126
  
Diluted
    
12,662,126
      
12,662,126
  
 
Contacts

Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825
 
Public Relations

Brad Burgess, SVP
ICR, LLC
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056