Bitdeer's third-quarter losses significantly reduced, continues to buy back stocks, but stock price has not shown improvement.

The mining company Bitdeer has released its third-quarter financial report, reporting the mining of 1,085 bitcoins from its own mining operations, a 121% increase from the same period last year. Although total revenue of $87.3 million saw a slight decrease from the second quarter's $93.82 million, the net loss has significantly reduced to $1.8 million. The company has announced an additional $2 million stock buyback plan, but the stock price has been weak, falling from $13 in September and even dropping below its IPO price.

Bhutan Data Center Joins, Bitdeer Continues to Grow

According to its financial report, in the three months ending September 30, 2023, the total hash rate managed by Bitdeer, including proprietary hash rate and hosted hash rate, increased to 21.2 EH/s from 18.8 EH/s in the previous quarter, with 221,000 machines under management. In the third quarter, Bitdeer's self-mining operations produced 1,085 Bitcoins. The data center constructed in Bhutan has been completed and commenced operations in August, while the immersion cooling data center in Tydal, Norway, is expected to be completed by 2025.

Continuously Increasing the Proportion of Hosted Business to Reduce the Impact of Bitcoin Prices

Bitdeer's operations are divided into self-mining, cloud hash power sharing, and hosted business. According to the analysis of the financial report for the third quarter, self-mining revenue accounted for 36%, but with lower gross profit mainly due to the significant impact of Bitcoin prices. Bitdeer continues to increase the proportion of revenue from hosted services, as it has higher and more stable gross profit, less affected by Bitcoin prices, with member hosted business growing by 330% compared to the same period last year.

This quarter's gross profit was $21.1 million, with a gross profit margin of 24.2%, a significant improvement from $3.5 million and 4.6% in the same period last year. This was mainly due to a decrease in electricity costs, as well as a reduction in employee costs based on shares, salaries, and mining data center personnel.

Continuously Repurchasing Stocks, But Stock Prices Show No Improvement

In June, Bitdeer initiated a stock repurchase plan, allowing the company to repurchase up to $1 million worth of Class A common stock by September 15, 2023.

In October, they passed a $2 million repurchase plan with a deadline of April 17, 2024. Bitdeer plans to fund repurchases from its existing cash. By gradually executing the stock repurchase plan, they aim to minimize its impact on stock prices and create greater long-term returns for shareholders. As of the end of September, Bitdeer still had $134.5 million in cash and cash equivalents.

However, Bitdeer's stock price has recently been weak, declining from $13 in September, even falling below its previous listing price.

Bitdeer also announced that its high-performance cloud hash power platform based on NVIDIA DGX SuperPOD is expected to launch in the first quarter of 2024. In addition to Bitcoin mining, Bitdeer will leverage its data center advantages to enter the field of AI.

More about Bitdeer:

Bitdeer Successfully Goes Public by Shell Listing, Stock Price Falls Below IPO Price on the First Day

Bitdeer's 2022 Financial Report Reveals Continued Stock Price Below IPO Price Following Shell Listing