Bitdeer shares plunged 20%: quarterly report revealed miner's problems
Shares of mining company Bitdeer (BTDR) plunged 20% on Monday, hitting their lowest level since late March. The reason: the release of second-quarter financial results, which came in worse than market expectations for both profit and revenue.
The company's net loss was $0.37 per share, while analysts had forecast $0.32. Revenue reached $228.8 million, also falling short of the consensus estimate of $231.16 million. This is a serious signal for investors who were betting on growth in the sector.
Loss Overshadows Revenue Growth
The main problem is the rapid rise in costs, which is eating away at all operational successes. Bitdeer's net loss in the second quarter widened to $92.3 million, compared with $62.9 million a year earlier. The company even swung from a gross profit of $12 million to a gross loss of $8.5 million. Cost of revenue jumped to $237.3 million due to increased electricity and depreciation expenses.
Notably, revenue grew 47% during this period, from $155.6 million to $228.8 million. However, this was not enough to offset rising costs. It is worth recalling that the company also ended the first quarter with a loss of $159.5 million, pointing to systemic problems in the business model.
Mining Grows, but AI Investments Require Resources
Revenue from proprietary mining nearly tripled, from $59.3 million to $168.4 million. The company mined 2,694 BTC, compared with 565 BTC a year earlier. Adjusted EBITDA rose from $4.6 million to $31.1 million, indicating operational efficiency.
Additionally, Bitdeer is actively developing its artificial intelligence segment: revenue from cloud AI services climbed to $14 million, up from $1.3 million a year earlier. Chief Financial Officer Michael J. Potter called the reporting quarter "a step forward for the business," emphasizing the synergy between mining and AI infrastructure.
However, the market views the situation differently. BTDR shares, which rose 83% in the second quarter, outperforming bitcoin itself, have already fallen 43.7% since the start of July. Yesterday's decline completely wiped out all of that growth. The next earnings report is due in November, and it will show whether the company can reverse the negative trend.
My take: Bitdeer is trying to balance aggressive mining expansion with costly investments in AI infrastructure. The market is punishing the company for its inability to control costs. In the current environment, where network hash rate is rising and mining difficulty is increasing, it is critical for companies to demonstrate not only revenue growth but also profitability. Until Bitdeer shows a clear path to margins, the stock will remain under pressure.