Bitdeer fell 20%: losses grow despite explosive mining growth
Shares of mining company Bitdeer (BTDR) plunged 20% on Monday, hitting their lowest levels since late March. The reason — its second-quarter financial report, which missed Wall Street analysts' expectations on both profit and revenue.
The issuer, trading on the Nasdaq exchange, posted a loss of $0.37 per share, while the market expected $0.32. The company's revenue came in at $228.8 million, also falling short of the consensus forecast of $231.16 million.
Loss Overshadows Revenue Growth
Bitdeer's net loss for the reporting period widened to $92.3 million, compared with $62.9 million a year earlier. The company also swung from a gross profit of $12 million to a gross loss of $8.5 million. This continues a challenging stretch: in the first quarter, losses totaled $159.5 million.
Notably, revenue still surged 47% — from $155.6 million to $228.8 million. However, costs grew even faster: cost of revenue reached $237.3 million, driven mainly by electricity expenses and depreciation.
Mining Grows, but Costs Weigh
Revenue from proprietary mining nearly tripled — from $59.3 million to $168.4 million. The company mined 2,694 BTC, up from 565 coins a year earlier. Adjusted EBITDA rose from $4.6 million to $31.1 million over the same period.
In parallel, Bitdeer is actively developing infrastructure for artificial intelligence. Revenue from cloud AI services climbed to $14 million from $1.3 million last year. The CFO called the reporting quarter "a step forward for the business."
"Revenue from cloud AI services continues to grow alongside mining revenue as our SEALMINER fleet comes online. Together, this effect enables a fully integrated vertical structure — from energy generation and hardware solutions to infrastructure," noted Michael J. Potter.
Bitdeer Shares Return to March Levels
The financial losses hit the stock hard. BTDR shares fell 20.08% on Monday, closing at $8.70 — a four-month low.
In the second quarter, BTDR shares rose roughly 83%, outpacing bitcoin's own performance. However, since the start of July, the stock has already lost 43.7%, and yesterday's decline fully erased all those gains. Bitdeer's next earnings report is due in November.
My take: despite impressive mining growth and diversification into AI, the company has yet to convert operational growth into profit. As long as costs grow faster than revenue, investors are justified in questioning the efficiency of the business model. The key indicator for BTDR will be its ability to sustain margins after launching its own SEALMINER ASIC chips.