TL;DR
- Bitdeer Technologies Group reported a 41% drop in quarterly revenue due to rising electricity costs at its mining site in Bhutan.
- Despite operational losses, the company managed to secure over $400 million in net profit thanks to fair value adjustments on derivatives.
- Bitdeer is preparing for a rebound by expanding its global energy infrastructure and increasing its mining capacity.
Bitdeer, one of the world’s leading Bitcoin mining companies, has experienced a rough quarter. In the first fiscal quarter of 2025, its revenue dropped to $70.1 million, a 41.3% decline compared to the same period last year. The primary cause was a temporary surge in electricity prices in Bhutan during the dry season, which forced a halt in mining operations. Although the company posted a gross loss of $3.2 million, energy costs have since normalized with the start of the wet season, enabling a gradual reactivation of operations.
Nevertheless, in the midst of the downturn, Bitdeer achieved something unexpected: a net profit of $410 million. This was largely due to the reversal of fair value adjustments related to convertible notes and Tether options, showcasing a flexible financial strategy that goes beyond Bitcoin mining alone.
New Strategies for Accelerated Recovery
The company is placing a strong bet on two fronts: developing high-performance mining hardware with its new SEAL machines and expanding its self-mining capacity, which is expected to reach 40 EH/s by the end of 2025. Currently, it has reached 12.5 EH/s, and with the rollout of the Seal01 and Seal02 models, offering production costs up to 20% lower than competitors, Bitdeer is aiming to reclaim its competitive edge in the market.
Additionally, the company is constructing a new assembly plant in North America to bypass tariffs and reduce reliance on Asia. While this plant adds nearly 10% in production costs, it will be crucial to maintaining a strong presence in the U.S. market and preserving its strategic autonomy.
Bitdeer and the Optimism in the Crypto World
The outlook for the remainder of the year remains optimistic. Bitcoin prices have bounced back in recent weeks and are on track to surpass $109,000. The potential for interest rate cuts by the Federal Reserve as early as June further enhances Bitcoin’s appeal as a hedge against the weakening dollar. In this context, Bitdeer is not just aiming to weather the storm but to emerge as a dominant force in the next phase of the crypto market.
