Bitdeer shares plunged 20%: analysis of the second quarter report and what it means for miners
Shares of mining company Bitdeer (BTDR) on Nasdaq plunged 20% on Monday, hitting their lowest levels since late March. The reason: its second-quarter earnings report, which disappointed investors on key metrics — the net loss came in above forecasts, and revenue fell short of Wall Street consensus estimates.
Financial results: losses growing faster than revenue
For the quarter, the company posted a loss of $0.37 per share, while analysts had expected $0.32. Revenue came in at $228.8 million, below the projected $231.16 million. The net loss for the quarter widened to $92.3 million, compared with $62.9 million a year earlier. Moreover, the company swung from a gross profit of $12 million to a gross loss of $8.5 million.
This continues a difficult period: in the first quarter, the loss stood at $159.5 million. Notably, revenue still jumped 47% — from $155.6 million to $228.8 million. However, expenses grew even faster: cost of revenue reached $237.3 million due to electricity and depreciation costs.
Mining grows, but the stock price falls
Despite the losses, operational metrics are impressive. Revenue from proprietary mining nearly tripled — from $59.3 million to $168.4 million. The company mined 2,694 BTC versus 565 BTC a year earlier. Adjusted EBITDA rose from $4.6 million to $31.1 million. Bitdeer is also actively expanding its AI segment: revenue from cloud AI services climbed to $14 million from $1.3 million.
Chief Financial Officer Michael J. Potter called the quarter "a step forward for the business," emphasizing the synergy between mining, SEALMINER equipment production, and AI infrastructure. However, the market is primarily assessing financial stability rather than operational growth.
What's next?
In the second quarter, BTDR shares rose roughly 83%, outperforming bitcoin. But since the start of July, the stock has already fallen 43.7%, and yesterday's decline fully erased the quarter's gains. The next report is due in November.
My take: Bitdeer's story is a classic example of how aggressive expansion and capital expenditures weigh on margins in the short term. Until the company reaches operational breakeven, stock volatility will persist. However, the bet on vertical integration and the AI segment could pay off in the medium term if the market sees real loss reduction.