BitDeer continues to grow, Bitcoin price remains stagnant, mining companies still struggling

The mining company Bitdeer has released its financial report for the second quarter, with total revenue reaching 93.82 million USD, a 5% increase from the same period last year. The net loss was 40.4 million USD, mainly due to expenses related to the previous shell listing. The company continues its 1 million USD stock buyback plan. Following the financial report release, the stock price surged by 35% to 12.58 USD.

Bitdeer Continues to Grow

According to its disclosed financial report, as of June 30, 2023, Bitdeer's total managed computing power, including proprietary and hosted computing power, reached 18.8 EH/s, managing a total of 199,000 mining machines. In the second quarter, it mined 758 bitcoins with its own mining operations, outperforming the same period last year in many aspects. The data center in Bhutan has been completed and is currently undergoing power-on testing, expected to begin operations in the third quarter, while the immersion cooling data center in Tydal, Norway, is expected to be completed by 2025.

In the second quarter of 2023, the total revenue was $93.82 million, compared to $89.18 million in the same period of 2022. Both self-mining and hosting services revenue showed growth, while cloud computing power revenue declined. Costs increased by $14.58 million due to higher electricity costs, resulting in a gross profit decline to $16.16 million, with a gross profit margin of 17.2%. However, Bitdeer made significant reductions in operating expenses, especially in terms of employee equity compensation.

The second quarter concluded with a net loss of $40.4 million, primarily due to expenses related to its previous reverse merger listing. Excluding these expenses, the adjusted EBITDA was $18.7 million. Bitdeer holds approximately $130 million in cash and cash equivalents, with $10.33 million in cryptocurrency.

Bitcoin Price Unrecovered, Mining Companies Still Struggling

We also compiled the second-quarter revenue and net profit figures for two other publicly listed mining companies, Marathon Digital and Riot, both of which reported losses. Although the losses have significantly reduced compared to the previous year, it seems difficult for these companies to turn a profit without the recovery of Bitcoin prices. Additionally, Riot announced a $750 million stock offering plan to raise more funds, indicating that everyone is trying to navigate through this crypto winter.