SINGAPORE, May 16, 2023 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for the cryptocurrency mining community, today announced its unaudited financial results for the first quarter ended March 31, 2023.
Linghui Kong, Chief Executive Officer of Bitdeer, commented, “We continued to deliver robust performance and maintained a sufficient cash flow during the first quarter, despite macroeconomic and crypto-market headwinds. While we recorded a net loss of $9.5 million, our non-IFRS adjusted profit was $2.8 million and non-IFRS adjusted EBITDA was $18.5 million. At the operational level, we proactively optimized our cost base by locking up a competitive price for 150MW electricity capacity in our Rockdale mining datacenter effectively until the end of 2023. Moreover, we further invested in our future growth by expanding our fleet of mining machines and increasing our proprietary hash rate from 4.1 EH/s as of December 31, 2022 to 5.7 EH/s as of March 31, 2023.”
“Looking ahead, we are excited to partner with Druk Holding & Investments to jointly develop a carbon-free digital asset mining datacenter in the Kingdom of Bhutan. This collaboration further expands our global footprint and complements our existing datacenters in Northern Europe and North America. In preparation for the partnership launch in May 2023, we have ordered 30,000 new mining machines to be deployed onsite, thus laying a solid foundation for the project’s success.”
The majority of the Company’s revenue is derived from its three distinct business lines:
- Self-mining1 refers to cryptocurrency mining for the Company’s own account, which allows it to directly capture the high appreciation potential of cryptocurrency.
- Hash Rate Sharing currently primarily includes Cloud Hash Rate, in which the Company offers hash rate subscription plans and shares mining income with customers under certain arrangements.
- Hosting encompasses a one-stop mining machine hosting solution including deployment, maintenance, and management services for efficient cryptocurrency mining.
First Quarter 2023 Financial Highlights
- Total revenue was $72.6 million in the first quarter of 2023, compared to $90.4 million in the corresponding period of 2022, primarily due to the year-over-year changes in Bitcoin prices leading to a decrease in revenue generated from self-mining and Cloud Hash Rate, partially offset by an increase in revenue generated from hosting services.
- Net loss was $9.5 million in the first quarter of 2023, compared to a net loss of $9.6 million in the corresponding period of 2022. The net loss in each period was primarily caused by share-based expenses, which was $12.3 million in the first quarter of 2023 and $35.2 million in the first quarter of 2022.
- Adjusted profit was $2.8 million in the first quarter of 2023, compared to $25.6 million in the corresponding period of 2022. Adjusted profit/(loss) is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as profit/(loss) adjusted to exclude share-based payment expenses under IFRS 2.
- Adjusted EBITDA was $18.5 million in the first quarter of 2023, compared to $46.3 million in the corresponding period of 2022. Adjusted EBITDA is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude share-based payment expenses under IFRS 2.
- Cash and cash equivalents were $173.9 million as of March 31, 2023.
First Quarter 2023 Operational Highlights
- Total managing hash rate, which consists of proprietary hash rate and hosting hash rate, was 18.3 EH/s as of March 31, 2023.
- Proprietary hash rate was 5.7 EH/s as of March 31, 2023, with 3.9 EH/s allocated to the Company’s self-mining business and 1.8 EH/s to its Cloud Hash Rate business.
- Hosting hash rate was 12.6 EH/s as of March 31, 2023.
Self-mining business mined 552 Bitcoins in the first quarter of 2023, as compared to 538 Bitcoins in the corresponding period of 2022.
- Total deployed fleet was approximately 196,000 ASIC mining machines, including approximately 67,000 of the Company’s own mining machines for its self-mining business and Cloud Hash Rate business, and approximately 129,000 mining machines for its hosting business.
- Aggregate electricity capacity was 795MW across five mining datacenters as of March 31, 2023, representing a 90.6% increase from 417MW as of March 31, 2022. The Company also has another 100MW of capacity under construction in Bhutan. The datacenter to be constructed in Bhutan is expected to commence operation in the third quarter of 2023.
- Total power usage was approximately 992,700 MWH across the Company’s five mining datacenters in the first quarter of 2023.
First Quarter 2023 Financial Results
Revenue
Total revenue was $72.6 million, compared to $90.4 million in the corresponding period of 2022.
- Self-mining revenue was $13.2 million, compared to $23.4 million in the corresponding period of 2022, primarily due to year-over-year changes in Bitcoin prices during the quarter.
- Revenue from Cloud Hash Rate was $18.0 million, compared to $40.0 million in the corresponding period of 2022, primarily due to changes in the amount of active Cloud Hash Rate orders.
- Revenue from General Hosting was $22.1 million, compared to $22.2 million in the corresponding period of 2022, remaining stable.
- Revenue from Membership Hosting was $16.5 million, compared to nil in the corresponding period of 2022, primarily due to revenue generated from the Company’s North America mining datacenter, which began to deliver capacity in the second half of 2022.
Gross Profit
Gross profit was $13.5 million in the first quarter of 2023, representing a 18.6% gross margin, compared to $41.4 million, or a 45.7% gross margin, in the corresponding period of 2022, mainly due to a change in total revenue and an increase in electricity and depreciation costs attributable to the expansion of the Company’s mining datacenters.
Operating Expenses
The sum of below operating expenses in the first quarter of 2023 was $24.7 million, as compared to $45.7 million in the corresponding period of 2022.
- Selling expenses were $2.4 million, compared to $3.8 million in the corresponding period of 2022, primarily due to decreases in share-based compensation to sales personnel.
- General and administrative expenses were $16.0 million, compared to $30.7 million in the corresponding period of 2022, primarily due to decreases in share-based compensation and staff costs to general and administrative personnel.
- Research and development expenses were $6.3 million, compared to $11.1 million in the corresponding period of 2022, primarily due to decreases in share-based compensation to research and development personnel.
Net Loss
Net loss was $9.5 million, compared to a net loss of $9.6 million in the corresponding period of 2022.
Adjusted Profit (Non-IFRS)
Adjusted profit was $2.8 million, compared to $25.6 million in the corresponding period of 2022.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was $18.5 million, compared to $46.3 million in the corresponding period of 2022, primarily due to a decrease in revenue and an increase in electricity costs.
Liquidity
As of March 31, 2023, the Company held $173.9 million in cash and cash equivalents, as compared to $231.4 million as of December 31, 2022. Use of cash included purchase of mining fleets of $18.7 million, prepayment to mining fleets suppliers of $22.5 million, and deposits to electricity suppliers of $37.6 million.
Recent Developments
On May 3, 2023, the Company and Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, announced a strategic partnership to develop environmentally sustainable, carbon-free digital asset mining operations in the Kingdom of Bhutan.
Recently, management has been exploring means to mitigate risks related to potential Bitcoin price volatility which may include hedging or other options. At the same time, management is considering introducing a dividend policy and share buyback programs to reward and create more value for the Company's shareholders.
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for the cryptocurrency mining community headquartered in Singapore. Bitdeer has committed to providing comprehensive digital asset mining solutions for its customers. Bitdeer handles complex processes involved in mining such as miner procurement, transport logistics, mining datacenter design and construction, mining machine management and daily operations. Bitdeer has mining datacenters deployed in the United States and Norway. To learn more, visit https://ir.bitdeer.com/.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.
Use of Non-IFRS Financial Measures
In evaluating the Company’s business, the Company considers and uses non-IFRS measures, adjusted EBITDA and adjusted profit/(loss), as supplemental measures to review and assess its operating performance. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude share-based payment expenses under IFRS 2, and defines adjusted profit/(loss) as profit/(loss) adjusted to exclude share-based payment expenses under IFRS 2. The Company presents these non-IFRS financial measures because they are used by its management to evaluate its operating performance and formulate business plans. The Company also believes that the use of these non-IFRS measures facilitate investors’ assessment of its operating performance. These measures are not necessarily comparable to similarly titled measures used by other companies. As a result, investors should not consider these measures in isolation from, or as a substitute analysis for, the Company’s loss for the periods, as determined in accordance with IFRS.
The Company compensates for these limitations by reconciling these non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating its performance. The Company encourages investors to review its financial information in its entirety and not rely on a single financial measure.
The following table presents a reconciliation of loss for the relevant period to adjusted EBITDA and adjusted profit, for the three months ended March 31, 2023 and 2022.
| Three months ended March 31, | ||||||
| 2023 | 2022 | |||||
| US$ | US$ | |||||
| (in thousands) | ||||||
| Adjusted EBITDA | ||||||
| Loss for the periods | (9,467 | ) | (9,587 | ) | ||
| Add： | ||||||
| Depreciation and amortization | 17,289 | 14,145 | ||||
| Income tax expenses/(benefit) | (972 | ) | 5,469 | |||
| Interest expense/(income), net | (644 | ) | 1,146 | |||
| Share-based payment expenses | 12,293 | 35,174 | ||||
| Adjusted EBITDA | 18,499 | 46,347 | ||||
| Adjusted Profit | ||||||
| Loss for the periods | (9,467 | ) | (9,587 | ) | ||
| Add： | ||||||
| Share-based payment expenses | 12,293 | 35,174 | ||||
| Adjusted Profit | 2,826 | 25,587 | ||||
Consolidated Statements of Financial Position
| As of March 31, | As of December 31, | ||||
| 2023 | 2022 | ||||
| US$ | US$ | ||||
| (in thousands) | |||||
| ASSETS | |||||
| Cash and cash equivalents | 173,897 | 231,362 | |||
| Cryptocurrencies | 4,537 | 2,175 | |||
| Trade receivables | 15,250 | 18,304 | |||
| Amounts due from a related party | 311 | 397 | |||
| Mining machines | 41,829 | 27,703 | |||
| Prepayments and other assets | 126,902 | 59,576 | |||
| Financial assets at fair value through profit or loss | 30,848 | 60,959 | |||
| Restricted cash | 11,494 | 11,494 | |||
| Right-of-use assets | 58,943 | 60,082 | |||
| Property, plant and equipment | 132,706 | 138,636 | |||
| Investment properties | 35,645 | 35,542 | |||
| Intangible assets | 286 | 322 | |||
| Deferred tax assets | 4,123 | 4,857 | |||
| TOTAL ASSETS | 636,771 | 651,409 | |||
| LIABILITIES | |||||
| Trade payables | 16,084 | 15,768 | |||
| Other payables and accruals | 22,300 | 22,176 | |||
| Amounts due to a related party | 21 | 316 | |||
| Income tax payables | 642 | 657 | |||
| Deferred revenue | 167,633 | 182,297 | |||
| Borrowings | 29,895 | 29,805 | |||
| Lease liabilities | 69,597 | 70,425 | |||
| Deferred tax liabilities | 9,446 | 11,626 | |||
| TOTAL LIABILITIES | 315,618 | 333,070 | |||
| NET ASSETS | 321,153 | 318,339 | |||
| EQUITY | |||||
| Share capital | 1 | 1 | |||
| Retained earnings/(accumulated deficit) | (2,664 | ) | 6,803 | ||
| Reserves | 323,816 | 311,535 | |||
| TOTAL EQUITY | 321,153 | 318,339 | |||
Consolidated Statements of Operations and Comprehensive Loss
| Three months ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| US$ | US$ | |||||||
| (in thousands) | ||||||||
| Revenue | 72,587 | 90,441 | ||||||
| Cost of revenue | (59,095 | ) | (49,087 | ) | ||||
| Gross profit | 13,492 | 41,354 | ||||||
| Selling expenses | (2,436 | ) | (3,846 | ) | ||||
| General and administrative expenses | (16,004 | ) | (30,743 | ) | ||||
| Research and development expenses | (6,294 | ) | (11,084 | ) | ||||
| Other operating income/(expenses) | 895 | (82 | ) | |||||
| Other net gain | 140 | 1,112 | ||||||
| Loss from operations | (10,207 | ) | (3,289 | ) | ||||
| Finance expenses | (232 | ) | (829 | ) | ||||
| Loss before taxation | (10,439 | ) | (4,118 | ) | ||||
| Income tax benefit/(expenses) | 972 | (5,469 | ) | |||||
| Loss for the period | (9,467 | ) | (9,587 | ) | ||||
| Other comprehensive loss | ||||||||
| Loss for the period | (9,467 | ) | (9,587 | ) | ||||
| Other comprehensive loss for the period | ||||||||
| Item that may be reclassified to profit or loss | ||||||||
| - Exchange differences on translation of financial statements | (12 | ) | - | |||||
| Other comprehensive loss for the period, net of tax | (12 | ) | - | |||||
| Total comprehensive loss for the period | (9,479 | ) | (9,587 | ) | ||||
| Loss per share | ||||||||
| Basic | (0.00 | ) | (0.00 | ) | ||||
| Diluted | (0.00 | ) | (0.00 | ) | ||||
| Weighted average number of shares outstanding (thousand shares) | ||||||||
| Basic | 12,662,126 | 12,662,126 | ||||||
| Diluted | 12,662,126 | 12,662,126 | ||||||
Contacts
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825
Public Relations
Brad Burgess, SVP
ICR, LLC
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056
_______________________
¹Self-mining formerly known as “Proprietary mining” as disclosed in F-4/20-F filings.
