Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bitdeer Technologies Group (BTDR, Financial) has prioritized the development of its own ASIC technology, which is expected to provide a significant cost advantage and differentiate its business in the sector.
- The company successfully acquired a 19-acre site in Alberta, Canada, for a 101-megawatt gas-fired power plant, positioning it as the world's first fully vertically integrated Bitcoin miner at scale.
- Bitdeer Technologies Group (BTDR) plans to implement a carbon utilization system at its new site, aiming to make the project a net zero carbon producer and potentially generate revenue through carbon credits.
- The company has secured a globally diversified power portfolio with over 2.6 gigawatts of total power capacity, allowing for significant expansion in self-mining and AI data center power.
- Bitdeer Technologies Group (BTDR) has received strong demand for its SealMiner A2, with pre-orders oversubscribed by a factor of six, indicating robust market interest in its products.
Negative Points
- Bitdeer Technologies Group (BTDR) reported a decline in Q4 2024 revenue to $69 million from $114.8 million, primarily due to the impact of the April 2024 halving and higher global network cash rate.
- The company's adjusted EBITDA for Q4 2024 was negative $3.8 million, reflecting challenges in maintaining profitability amid increased R&D expenses and lower hosting and cloud mining revenue.
- Gross profit for Q4 2024 decreased to $5.1 million from $27 million, with a gross margin drop to 7.4% from 23.5%, largely due to the expiration of high-margin cloud hash rate contracts.
- Bitdeer Technologies Group (BTDR) experienced a significant net loss of $531.9 million for Q4 2024, driven by non-cash derivative losses on tether warrants and convertible notes.
- The company faces potential challenges in financing its wafer orders from TSMC, with concerns about stock price fluctuations affecting its ability to secure necessary funds.
Q & A Highlights
Q: There have been reports of US-based miners experiencing delays in receiving their ASICs due to trade tensions between the US and China. Has this affected the demand for your SealMiner?
A: Haris Basit, Chief Strategy Officer, mentioned that they are aware of the situation but have not experienced any direct impact. Jihan Wu, CEO, added that the issue seems to have been resolved through industry efforts, and they hope it will not affect their market exploration in the US.
Q: How should we think about your manufacturing capacity for the next batch of A2s and the next-gen A3 rigs?
A: Haris Basit stated that they expect capacity to increase, with TSMC being a trusted partner. They will announce more allocations as they receive them, maintaining a strong relationship with TSMC.
Q: Can you outline the CapEx allocation for 2025, specifically between self-mining and HPC or AI spending?
A: Jeff LaBerge, Head of Capital Markets and Strategic Initiatives, explained that the CapEx numbers are for Bitcoin mining infrastructure costs. The allocation covers expansions in Rockdale, Texas, Bhutan, Maslin, Ohio, and Alberta, assuming these sites are used for Bitcoin mining.
Q: With the acquisition in Alberta, how are you strategically thinking about Bitcoin mining for current sites?
A: Haris Basit mentioned that they remain bullish on Bitcoin mining and will continue allocating resources to existing sites. The Alberta acquisition has not changed their strategy, and they will focus on self-mining until capacity is filled.
Q: How are you thinking about the short-term pricing strategy for external sales of SealMiner, and what are the expected tape-out costs for 2025?
A: Haris Basit stated that the A2s are priced at $15 per terahash, which is competitive. They expect more flexibility in pricing with the A3s due to their energy efficiency. Tape-out costs for A2 and A3 are already paid, with future costs for A4 expected in Q3.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
