Bitdeer: shares plunged 20% after weak second-quarter report
Shares of mining company Bitdeer (BTDR) plunged 20% on Monday, hitting their lowest levels since late March. The reason: its second-quarter earnings report, which missed market expectations on both profit and revenue.
Financial metrics: loss exceeds forecasts
The company's net loss came to $0.37 per share, while analysts on average expected $0.32. Revenue reached $228.8 million, also falling short of the consensus forecast of $231.16 million. This marks the second consecutive loss-making quarter: in the first quarter, losses were even larger at $159.5 million.
Notably, revenue for the reporting period rose 47% year-over-year, from $155.6 million to $228.8 million. However, the pace of cost growth was even higher: cost of revenue jumped to $237.3 million amid increased spending on electricity and depreciation. As a result, the company swung from a gross profit of $12 million to a gross loss of $8.5 million.
Mining grows, but costs eat into profits
Revenue from proprietary mining nearly tripled, from $59.3 million to $168.4 million. The company mined 2,694 BTC versus 565 coins a year earlier. Adjusted EBITDA rose from $4.6 million to $31.1 million, pointing to positive momentum in operating activity.
Bitdeer is also actively developing its artificial intelligence segment. Revenue from cloud AI services surged to $14 million, compared with $1.3 million last year. The company's CFO described the reporting quarter as "a step forward for the business," highlighting the synergy between mining and AI infrastructure within its vertically integrated structure.
Market reaction and outlook
Despite encouraging operating metrics, investors focused on the losses. BTDR shares closed at $8.70, completely erasing the second-quarter rally when the stock gained roughly 83%, outperforming bitcoin. Since the start of July, the shares have already lost 43.7%.
Bitdeer's next report will be released in November. In my view, the market is currently punishing the company for its inability to convert revenue growth into profit, but if electricity costs stabilize and the AI segment continues to scale, we could see a trend reversal. For now, investors should remain cautious and keep an eye on hashrate dynamics and energy prices.