Bitdeer loses 20% of its market capitalization: ambitious expansion turns into losses
Shares of mining giant Bitdeer (BTDR) plunged 20% after the release of its second-quarter financial report. The stock hit its lowest levels since late March, with investors reacting to widening losses and revenue that fell short of Wall Street forecasts.
For the Nasdaq-listed company, the reporting period proved disappointing. The loss per share came in at $0.37, while analysts had expected $0.32. Revenue reached $228.8 million, also below the consensus forecast of $231.16 million. These figures triggered a sell-off.
Loss Overshadows Record Revenue Growth
Bitdeer's net loss widened to $92.3 million, compared with $62.9 million a year earlier. A more alarming signal is the shift from a gross profit of $12 million to a gross loss of $8.5 million. The company continues to incur losses: recall that in the first quarter, the net loss stood at $159.5 million. At the same time, revenue showed impressive growth of 47%—from $155.6 million to $228.8 million.
The key issue lies in the faster growth of costs. Cost of revenue surged to $237.3 million, directly tied to electricity and depreciation expenses. The company is aggressively expanding capacity but has yet to convert scaling into profit.
Mining Grows, but the Price Is High
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. In parallel, Bitdeer is developing infrastructure for artificial intelligence: revenue from cloud AI services climbed to $14 million from $1.3 million.
The CFO called the quarter "a step forward for the business," emphasizing the synergy between mining and the AI segment. However, the market sees things differently: since early July, BTDR shares have lost 43.7%, fully erasing the second-quarter rally when the stock gained about 83%, outperforming bitcoin itself.
My take: Bitdeer has found itself in the classic trap of rapid scaling. The growth in mining output and revenue is impressive, but without cost control, these metrics mean nothing to shareholders. The next report is due in November, and that is when it will become clear whether the company can reverse the trend or whether investors should brace for further correction. For now, the story looks fundamentally weak: a loss-making miner with growing debt is not the best asset amid BTC volatility.