Release Date: November 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bitdeer Technologies Group (BTDR, Financial) is strategically expanding its energy infrastructure to support the rapid increase in self-mining hash rate using its own ASIC technology.
- The company is making significant strides in its ASIC business, with plans to commercialize its SEALMINER ASICs, targeting a $4 billion to $5 billion market annually over the next five years.
- Bitdeer Technologies Group (BTDR) is focused on building a vertically integrated business, developing industry-leading hardware and software solutions across its ASICs and AI cloud business lines.
- The company has successfully incorporated its SEAL02 chip into SEALMINER A2 mining rigs, achieving high efficiency and performance metrics.
- Bitdeer Technologies Group (BTDR) is well-positioned to leverage its substantial power capacity to meet the growing demand for HPC and AI data centers, with strategic partnerships and opportunities in development.
Negative Points
- Bitdeer Technologies Group (BTDR) reported a negative adjusted EBITDA of $8.5 million for Q3 2024, reflecting a decline in financial performance compared to the previous year.
- The company's total revenue decreased to $62 million from $87.3 million year-over-year, impacted by the 2024 halving and higher global network hash rate.
- There was a significant decline in cloud hash rate revenue, dropping from $15.6 million to $7.1 million, primarily due to long-term contracts rolling off.
- The conversion of 100 megawatts of hosting capacity to hydro-cooling capacity at the Texas facility has led to a decrease in hosting revenue.
- Bitdeer Technologies Group (BTDR) experienced a net loss of $50.1 million for the quarter, driven by lower gross profit margins and higher R&D costs, including a $13.4 million one-off expense related to the SEAL02 chip.
Q & A Highlights
Q: Can you elaborate on the TLM engagement and how it positions Bitdeer to secure HPC partners?
A: Jihan Wu, CEO, explained that the TLM engagement has concluded with positive reports on US sites, particularly in Ohio and Rockdale. Discussions are ongoing with potential partners, focusing on structuring partnerships from both financing and operational perspectives. Jeff LaBerge, Head of Capital Markets, added that significant interest has been expressed from multiple parties.
Q: How will the rollout of SEALMINER rigs affect Bitdeer's global hash rate?
A: Matt Kong, Chief Business Officer, stated that Bitdeer is well-positioned with secured power and mass production of mining machines. The company plans to allocate 18 exahash of hash power for self-mining and market sales, with more deployments as data centers are completed.
Q: Has the recent surge in Bitcoin prices changed Bitdeer's strategy regarding hosting infrastructure?
A: Matt Kong noted that while the value of power supply has increased, Bitdeer aims to maintain trust with hosting clients. Jeff LaBerge added that most hosting contracts were designed to roll off, allowing Bitdeer to reclaim capacity for self-mining.
Q: Can you outline the CapEx allocation of $250 million to $275 million over the next year?
A: Jeff LaBerge explained that the CapEx is primarily for existing sites under construction, including Tydal, Norway, Texas hydro conversion, Jigmeling, Bhutan, and Clarington, Ohio. The focus will be on self-mining, but hosting capacity may be considered depending on market conditions.
Q: What are Bitdeer's goals for market share in the ASIC market, and how do you plan to compete with established players?
A: Jihan Wu emphasized that Bitdeer aims to secure market share through technology and stability of mining rigs. The company plans to provide transparent data on production and customer behavior, although market share predictions are uncertain due to semiconductor capacity constraints.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
