Crypto miner Bitdeer faces steep Q4 loss but eyes 40 EH/s hashrate goal

Bitdeer Technologies Group reported a $531.9 million loss for the fourth quarter of 2024, a sharp increase from the $5 million loss in the same period the previous year.

Bitdeer, the blockchain and fast computing-focused company released financial results for the fourth quarter and full year of 2024. The company reported a net loss of $531.9 million for the quarter, compared to a $5 million loss in the same period last year. Total revenue for the fourth quarter of 2024 was $69 million, down from $114.8 million in the fourth quarter of 2023.

The decline in revenue and increased net loss are attributed to strategic investments in developing proprietary application-specific integrated circuit technology (ASIC) which temporarily limited hashrate growth. Despite these challenges, Bitdeer held $476.3 million in cash and cash equivalents as of Dec. 31, 2024.

Bitdeer’s tech plan

This year, Bitdeer plans to activate its SEALMINER A1s and 28 exahashes per second of SEALMINER A2s, aiming to achieve a total self-mining hashrate of approximately 40 exahashes per second by the fourth quarter of 2025. This expansion is part of Bitdeer’s strategy to vertically integrate and strengthen its competitive position in the blockchain and high-performance computing industry.

As of writing, Bitdeer’s stock (BTDR) is trading at $9.10, down just more than 30% on the day.

Industry outlook

The substantial loss has raised concerns among investors, but Bitdeer’s 2.6-gigawatt power growth and artificial intelligence data center plans could support a recovery. This trend is not unique to Bitdeer, as bitcoin miners, including Crusoe Energy , have started pivoting toward artificial intelligence data center leasing to diversify revenue streams.

The broader bitcoin mining industry continues to face challenges following the April 2024 halving event which reduced daily bitcoin rewards from 900 to 450 coins. This reduction has increased the average cost of producing one bitcoin to $55,950 for U.S.-listed miners in the third quarter of 2024, with some estimates, including depreciation and stock-based compensation, reaching as high as $106,000.

However, some analysts remain bullish in the industry’s outlook. Notably, H.C. Wainwright analysts stated in a recent note that the fourth quarter of 2024 was a positive period for bitcoin miners as the asset surpassed $100,000 for the first time, driven by increased adoption following pro-cryptocurrency policies under President Donald Trump’s return to the White House.