Bitdeer loses 20% of its market capitalization: second-quarter losses wiped out all growth
Shares of mining company Bitdeer (BTDR) have plunged to their lowest levels since late March. The cause was the published second-quarter financial report, which disappointed investors across all key metrics: the loss was higher than forecasts, and revenue fell short of Wall Street expectations.
The company's net loss amounted to $0.37 per share against a consensus analyst forecast of $0.32. Revenue for the reporting period reached $228.8 million, while the market expected $231.16 million. This is already the second consecutive loss-making quarter for Bitdeer — in the first quarter, losses were even larger, totaling $159.5 million.
Loss Overshadows Revenue Growth
Despite the impressive revenue momentum, which jumped 47% year-over-year — from $155.6 million to $228.8 million — the company's expenses grew even faster. Cost of revenue increased to $237.3 million, directly linked to electricity costs and equipment depreciation. As a result, the net loss widened from $62.9 million to $92.3 million, and gross profit turned into a gross loss of $8.5 million.
Notably, operating activity is showing positive momentum. Revenue from proprietary mining nearly tripled — from $59.3 million to $168.4 million. The company mined 2,694 BTC compared to 565 BTC a year earlier. Adjusted EBITDA rose from $4.6 million to $31.1 million, indicating operational efficiency in the business.
Betting on AI and Cloud Services
Bitdeer is actively diversifying its business by developing its artificial intelligence segment. Revenue from cloud AI services surged to $14 million, up from $1.3 million last year. The company's Chief Financial Officer, Michael J. Potter, called the reporting quarter "a step forward for the business," emphasizing that the launch of the SEALMINER fleet will enable a fully integrated vertical structure — from energy generation to hardware solutions and infrastructure.
Market Punishes Ambitions
Investors reacted extremely negatively to the report. On Monday, BTDR shares collapsed by 20.08%, closing at $8.70 — a four-month low. In the second quarter, the stock rose approximately 83%, outperforming bitcoin itself, but since early July, quotes have already lost 43.7%. Yesterday's decline completely wiped out all previous gains. Bitdeer's next earnings report is due in November.
My analysis: Bitdeer's situation is a classic example of how aggressive expansion into new areas, including AI, requires enormous capital expenditures that are not yet paying off. Strategically, the company is moving in the right direction, but the market demands quick results. In the short term, pressure on the stock will persist, but if the cloud AI segment continues to grow at this pace, we could see a trend reversal by the end of the year.