Bitdeer clocks 50% gross profit jump amid Bitcoin mining ramp up

The Bitcoin miner reported a net loss of $17.7 million in the second quarter of 2024 despite hashrate growth.

Bitdeer Technologies Group reported a roughly 50% year-over-year increase in gross profits in the second quarter of 2024, largely as a result of nearly doubling its in-house Bitcoin mining capacity, according to the company’s Aug. 12 earnings report. 

Gross profit for the second quarter of 2024 increased to $24.4 million from $16.2 million one year prior, according to Bitdeer.

Bitdeer increased its capacity for “self-mining” — or mining Bitcoin (BTC) for its own account — from 3.8 exahashes per second (EH/s) to 7.3 EH/s. Cryptocurrency mining is measured by hashrate or the computational power of a mining operation. 

“We achieved these results despite significant growth in the global network hashrate and the April 2024 halving,” Matt Kong, Bitdeer’s chief business officer, said in a statement. The total hashrate for the Bitcoin network is currently 677.43 EH/s, nearly double where it stood one year ago, according to data from CoinWarz.

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The company’s increased hashrate partly stems from Bitdeer’s deployment of its proprietary SEALMINER mining equipment, according to the executive.

“We have energized the first batch of our SEALMINER A1 chips, with mass production underway and plans to install 3.4 EH/s into our datacenters by year-end,” Kong said.

The BTC miner reported a net loss for the quarter of $17.7 million, largely due to capital expenditures on BTC mining equipment and “the non-cash expense of the fair value change for Tether warrants.” The net loss is an improvement over Bitdeer’s $40.4 million net loss one year ago.

In May, Bitdeer announced a $150 million private financing from Tether International Limited, the issuer of the Tether (USDT) stablecoin. The raise included $100 million in upfront capital from a share issuance and up to $50 million in additional funds from a warrant granting Tether the right to buy up to five million additional Bitdeer shares for $10 per share.

In June, Bitdeer acquired chip designer Desiweminer in an all-stock deal intended to enhance its product development capabilities. Kong said Desiweminer’s team has been integrated with Bitdeer’s existing design team in Singapore.