Bitdeer Reports Loss, Stock Takes a Hit
Bitdeer Technology Group’s stock plunged by 20% on Monday, a staggering drop of 422% compared to last year, following the announcement of a net loss totaling $266.7 million for the third quarter. The company reported a loss of $1.28 per share, deteriorating from a loss of $0.35 per share in Q3 2024, and falling short of Zacks Investment Research’s estimate of -$0.22. On a brighter note, Bitdeer’s revenue nearly tripled compared to the previous year, increasing from $62 million to $169.7 million, surpassing Zacks’ expectations.
The stock closed at $17.64 on Monday, erasing gains acquired over the past month, per data from Yahoo Finance. Despite this setback, Bitdeer’s stock has fared slightly better than rivals, remaining relatively flat recently; however, it is still down 22.8% for the year.
In contrast, competitors like MARA Holdings and CleanSpark experienced declines of 1.8% and 3.4% respectively, with Riot Platforms managing a slight increase of 1.8%. Over the last month, MARA has dropped approximately 16.4%, while CleanSpark and Riot Platforms saw declines of 22% and 17.5% respectively.
Amid these challenges, Chief Business Officer Matt Kong expressed optimism, pointing to the company’s shift toward high-performance computing. “In the third quarter, we had robust execution and solid financial performance,” he stated, emphasizing continued focus on their AI initiatives. He further remarked, “We’re ramping up our investments to tap into the growing global demand for computing.”
Bitdeer is among the crypto mining firms eager to leverage the surging need for AI. As a significant player in the mining sector, the company has been under pressure with diminishing rewards for blockchain validation—falling from 6.25 BTC to 3.125 BTC after last year’s halving—and rising operational costs. In light of these pressures, many miners are adapting by transforming into crypto treasuries, seeking alternate paths to shareholder value.
In August, Bitdeer indicated that it was concentrating on developing mining rigs and investing in U.S. resources, moving away from traditional reliance on Chinese manufacturing. However, despite the announced mass production of its SEAL Miner A3, the arrival of their new energy-saving mining chip, SEAL04, has faced delays.
