Core Viewpoint - Bitdeer Technologies Group plans to offer $300 million in Convertible Senior Notes due 2031, with an option for an additional $45 million, to qualified institutional buyers, subject to market conditions [1][2] Group 1: Offering Details - The notes will be general senior unsecured obligations of the Company, accruing interest payable semiannually [2] - Upon conversion, the Company will have the option to pay in cash, Class A ordinary shares, or a combination of both [2] - The interest rate and other terms will be determined at the time of pricing [2] Group 2: Use of Proceeds - Proceeds will be used for zero-strike call option transaction costs, cash consideration for concurrent note exchange transactions, datacenter expansion, ASIC mining rig development, and general corporate purposes [3] - If the additional notes are purchased, proceeds will similarly be allocated for datacenter expansion and other corporate purposes [3] Group 3: Zero-Strike Call Option Transaction - The Company plans to enter a zero-strike call option transaction with an initial purchaser, allowing it to receive a specified number of Class A ordinary shares at expiration [4] - This transaction aims to facilitate derivative transactions for investors, potentially impacting the market price of Class A ordinary shares and the notes [4][5] Group 4: Concurrent Note Exchange Transaction - The Company expects to negotiate privately to exchange certain August 2029 notes for cash and Class A ordinary shares [7] - The terms of these exchanges will vary and are not guaranteed [7] - Hedged holders of the August 2029 notes may unwind hedge positions, which could significantly affect the market price of Class A ordinary shares [8] Group 5: Company Overview - Bitdeer is a leading technology company in Bitcoin mining, providing comprehensive solutions including equipment procurement, datacenter design, and operations [11] - The Company is headquartered in Singapore and has datacenters in the United States, Norway, and Bhutan [11]

Core Insights - Bitdeer Technologies Group reported an increase in self-mining hashrate to 13.6 EH/s as of May 2025, with plans to exceed 40 EH/s by October 2025 [5][7] - The company sold and shipped 1.6 EH/s of SEALMINER A2s to external customers in May 2025 [5][7] - Self-mined Bitcoin production reached 196 Bitcoins in May 2025, marking an 18.1% increase from April 2025 [7] Operational Update - The deployment of SEALMINER mining rigs is ongoing in Texas, Norway, and Bhutan, contributing to the self-mining hashrate [5] - The SEALMINER A3 series is expected to be available for pre-order in June 2025 [7] - Client-hosted mining rigs increased by 5,000 units or 1.0 EH/s in May 2025 due to existing customers expanding their hosted mining rigs [7] Production and R&D - A total of 9.0 EH/s mining rigs have been manufactured, with 1.5 EH/s in final assembly as of the end of May 2025 [7] - The company is on track to achieve a chip efficiency of approximately 5 J/TH with the SEAL04 R&D project expected to tape-out in Q4 2025 [3] Financial Update - Tether exercised warrants in May 2025, resulting in the issuance of 5,186,627 ordinary shares and generating US$50 million in cash [7] - The total hash rate under management increased to 27.4 EH/s in May 2025, up from 25.1 EH/s in April 2025 [8] Infrastructure Development - Electrical equipment installation and hydro cooling systems in Tydal, Norway, are expected to be completed by the end of June 2025 [7][16] - Construction in Massillon, Ohio, is ongoing and expected to be completed in phases from Q3 to Q4 2025 [7][16] - The company has acquired a 50 MW Bitcoin mining project in Ethiopia for US$7.5 million, with expected energization in Q4 2025 [14][17]

Group 1 - Bitdeer (NASDAQ: BTDR) is recognized as a prominent player in the Bitcoin mining sector, particularly noted for its performance in the last Bitcoin market cycle [1] - Coverage on Bitdeer was initiated around June 2024, coinciding with the release of the previous year's Q1 earnings [1] Group 2 - The article highlights the author's background as a cryptocurrency enthusiast and trader since 2017, with expertise in coding, writing about cryptocurrencies, and investment strategies [1] - The author possesses a deep understanding of distributed ledger technology, the Web3 technology stack, and crypto investing [1]

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $70.1 million, down from $119.5 million in Q1 2024, primarily due to the impact of the 2024 halving and increased global network hash rate [7][20] - Gross profit was negative $3.2 million compared to positive $34.1 million, resulting in a gross margin of negative 4.6% versus 28.6% [22] - Adjusted EBITDA was negative $56.1 million compared to positive $27.3 million in the previous year [22] - Net cash used for operating activities was $284 million, driven mainly by supply chain and manufacturing costs [23] Business Line Data and Key Metrics Changes - Self-mining revenue decreased by 23.1% to $37.2 million, impacted by the halving event and increased global hash rate [20] - Cloud hash rate revenue fell to $100,000 from $18.1 million due to the expiration of long-term contracts [21] - General hosting revenue dropped to $9.6 million from $29 million, while membership hosting revenue decreased to $16.3 million from $19.5 million [21] Market Data and Key Metrics Changes - The company is focusing on geographic diversification, with over half of its new power capacity located in Norway and Bhutan [8] - The company expects to reach a self-mining hash rate of 40 exahash per second by October 2025, driven by new power capacity and ASIC production [14][68] Company Strategy and Development Direction - The company is prioritizing the development of its own ASIC technology, which is expected to provide long-term advantages and cost efficiencies [7] - Plans to migrate a portion of manufacturing to the U.S. in the second half of 2025 are underway, aiming to capitalize on favorable tariff policies [10] - The company is also exploring opportunities in high-performance computing (HPC) and AI, with ongoing discussions for potential partnerships [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for Bitcoin mining rigs, anticipating continued growth in the market [10] - The company is optimistic about the impact of recent trade negotiations on U.S. manufacturing for Bitcoin mining [9] - Management acknowledged uncertainties in capacity availability due to market dynamics but remains confident in their partnerships with TSMC [32] Other Important Information - The company signed a 50-megawatt mining data center agreement in Ethiopia, targeting energization by Q4 2025 [16] - The total available power capacity is expected to reach over 1.8 gigawatts by the end of 2025, including new projects in Ohio and Ethiopia [17] Q&A Session Summary Question: Interest in A2 and chip demand changes - Management noted increased interest in purchasing mining ASICs following recent market developments, but self-mining remains a priority [31] Question: 40 exahash target considerations - Management indicated that the target is influenced by machine availability and power capacity, with confidence in meeting the goal [32] Question: Demand for Clarington site and customer interest - The focus is on securing a development partner for the Clarington site, with inbound interest from potential end users [36] Question: Recent loan agreement rationale - The company is cautious about dilution and sees responsible debt as a viable option for financing chip purchases [37] Question: Strategy for Seal A4 ASIC - The company plans to transition to external sales as internal capacity fills up, with expectations for significant external sales once production ramps up [41] Question: Power cost trends - Q1 typically sees higher power prices, but management expects lower costs in Q2 and Q3 due to improved power supply strategies [46] Question: ASIC machine performance tracking - Customers can expect to test the efficiency of the new ASIC machines starting in October [50] Question: Average fleet efficiency targets - Management anticipates average efficiency to improve as newer rigs are deployed, with expectations for lower energy consumption in the future [55] Question: Tariff impact on external sales strategy - Management believes tariffs will not significantly hinder operations, with plans to adapt manufacturing strategies accordingly [78] Question: Customer interest trends and global sales composition - U.S.-based miners continue to dominate the market, but there is potential for increased international sales as the market evolves [86]

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $70.1 million, a decrease from $119.5 million in Q1 2024, primarily due to the impact of the 2024 halving and increased global network hash rate [6][19] - Gross profit was negative $3.2 million compared to positive $34.1 million in the previous year, resulting in a gross margin of negative 4.6% versus 28.6% [21] - Adjusted EBITDA was negative $56.1 million, down from positive $27.3 million in Q1 2024 [21] - Net cash used for operating activities was $284 million, driven mainly by supply chain and manufacturing costs [22] Business Line Data and Key Metrics Changes - Self-mining revenue was $37.2 million, down 23.1% year-over-year, influenced by the halving event and increased global hash rate [19] - Cloud hash rate revenue fell to $100,000 from $18.1 million due to the expiration of long-term contracts [20] - General hosting revenue decreased to $9.6 million from $29 million, while membership hosting revenue dropped to $16.3 million from $19.5 million [20] Market Data and Key Metrics Changes - The company is focusing on geographic diversification, with over half of its new self-mining power capacity located in Norway and Bhutan [7] - The company anticipates a self-mining hash rate of 40 exahash per second by October 2025, supported by new power capacity coming online [13] Company Strategy and Development Direction - The company is prioritizing the development of its own ASIC technology, which is expected to provide long-term advantages and cost efficiencies [6][12] - Plans to migrate a portion of manufacturing to the U.S. in the second half of 2025 are underway, aiming to capitalize on favorable tariff policies [9] - The company is also exploring opportunities in high-performance computing (HPC) and AI, with ongoing discussions for development partnerships [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for Bitcoin mining rigs, anticipating continued growth in the market [9][12] - The company is optimistic about the impact of recent trade negotiations on tariffs, which may encourage more Bitcoin mining-related manufacturing in the U.S. [8] - Management acknowledged the uncertainty in capacity availability due to market dynamics but remains confident in their partnerships with technology providers [31] Other Important Information - The company signed a 50-megawatt mining data center agreement in Ethiopia, targeting energization by Q4 2025 [14] - A loan agreement for up to $200 million was established to finance chip purchases, secured by the miners themselves [26][72] Q&A Session Summary Question: Interest in ASIC chips and demand changes - Management noted increased interest in purchasing mining ASICs following recent market developments, but self-mining remains the priority [30] Question: Clarington site development and customer demand - The focus is on securing a development partner for the Clarington site, with inbound interest from potential end users [35] Question: Capital structure and loan agreement rationale - The decision to enter a loan agreement was influenced by market conditions, with a focus on minimizing dilution while financing growth [36] Question: ASIC sales strategy and external sales capacity - The company plans to transition to more external sales as internal capacity fills up, with expectations for significant external sales of the A4 ASICs [40] Question: Power costs and future trends - Q1 typically sees higher power prices, but management expects lower costs in Q2 and Q3 due to improved power supply strategies [46] Question: Customer interest and tariff impacts - Management believes that U.S. miners will continue to expand operations despite potential tariff challenges, with a strong capital market supporting growth [86]

Core Viewpoint - Bitdeer Technologies Group reported a significant decline in revenue and gross profit for Q1 2025 compared to Q1 2024, while achieving a net income of $409.5 million primarily due to non-cash gains from derivative liabilities [4][16]. Financial Highlights - Total revenue for Q1 2025 was $70.1 million, down from $119.5 million in Q1 2024 [4][12]. - Cost of revenue decreased to $73.4 million from $85.4 million, leading to a gross loss of $3.2 million compared to a gross profit of $34.1 million in the previous year [4][10]. - Self-mining revenue was $37.2 million, down from $48.4 million, attributed to the April 2024 halving and increased global network hashrate [12]. - Adjusted EBITDA was negative $56.1 million, a decline from positive $27.3 million in Q1 2024 [4][18]. Operational Summary - The total hash rate under management increased to 24.2 EH/s from 22.5 EH/s year-over-year, with self-mining hash rate rising to 11.5 EH/s from 6.7 EH/s [2]. - The company aims to reach a self-mining hashrate of 40 EH/s by October 2025 [2]. - Bitcoin mined through self-mining was 350 BTC, down from 911 BTC in Q1 2024 [4]. Power Infrastructure - As of April 30, 2025, Bitdeer has a total electrical capacity of 1,098 MW, with plans to reach nearly 1.6 GW by the end of Q2 2025 [5]. - The company is engaged in developing HPC/AI data center strategies, with discussions ongoing for large-scale sites in the U.S. [2]. Balance Sheet and Cash Flow - Cash and cash equivalents stood at $215.6 million as of March 31, 2025, down from $476.3 million at the end of 2024 [4][21]. - The company reported net cash used in operating activities of $284.0 million, primarily due to working capital payments for SEALMINER production [21]. - Total assets increased to $1.6 billion, with total liabilities at $804.0 million [28]. Research and Development - R&D expenses surged to $59.0 million from $21.2 million, driven by costs related to the SEAL03 chip development and higher engineering costs [14]. Market Position - Bitdeer is positioned as a leading supplier of energy-efficient mining rigs, with ongoing efforts to enhance chip efficiency through the SEALMINER A4 project [2].

Core Viewpoint - Bitdeer Technologies Group has made significant advancements in its Bitcoin mining operations, including the energization of new power capacities in Norway and Bhutan, and an increase in self-mined Bitcoin production, indicating a strong growth trajectory in the cryptocurrency mining sector [1][4]. Operational Update - In April 2025, Bitdeer successfully energized 70 MW in Tydal, Norway, and 132 MW in Jigmeling, Bhutan, raising its global available power capacity to nearly 1.1 GW, with expectations to reach 1.6 GW by the end of June 2025 [4]. - The company mined 166 Bitcoins in April 2025, a 45.6% increase from March 2025, attributed to higher average self-mining hashrate from the energization of SEALMINERs [4]. - Total hash rate under management increased to 25.1 EH/s in April 2025, up from 24.2 EH/s in March 2025 [5]. Mining Rig Manufacturing and R&D - As of the end of April 2025, Bitdeer manufactured a total of 3.3 EH/s of mining rigs, with 1.2 EH/s in assembly [4]. - The SEALMINER A1 has achieved an energy efficiency of 9.7 J/TH at the chip level, with further testing expected to finalize by late Q2 2025 [4]. - The SEAL04 R&D project aims for a chip efficiency of approximately 5 J/TH, with an anticipated initial tape-out in Q4 2025 [4]. Infrastructure Development - The construction of datacenter infrastructure and cooling systems in Tydal, Norway, and Jigmeling, Bhutan, is progressing, with completion expected by June 2025 [4][12]. - The Clarington, Ohio site has paused Bitcoin mining-related construction due to advancing discussions for HPC/AI projects, maintaining optionality for future Bitcoin mining [5][10]. Financing - Bitdeer entered into a loan agreement with Matrixport Group for a financing facility of up to US$200 million, with a variable interest rate of 9.0% plus a market-based reference rate [4]. Future Projects - A 50 MW Bitcoin mining project in Oromia Region, Ethiopia, has been signed for US$7.5 million, expected to be energized by Q4 2025 [14]. - The company is also planning additional sites in Rockdale, Texas, and Alberta, Canada, with various capacities and timelines for completion [9][11].

Company Overview - Bitdeer Technologies Group (BTDR) is expected to report a quarterly loss of $0.48 per share, reflecting a year-over-year decline of 700% [3] - Revenues are anticipated to be $71.13 million, down 40.5% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 10.71% higher in the last 30 days, indicating a reassessment by analysts [4] - The upcoming earnings report is scheduled for May 15, and the stock may react positively if results exceed expectations [2][3] Earnings Surprise Prediction - The Zacks Earnings ESP for Bitdeer Technologies Group is +10.88%, suggesting a potential positive deviation from the consensus estimate [11] - However, the company holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Bitdeer Technologies Group was expected to post a loss of $0.23 per share but instead reported a loss of $3.22, resulting in a surprise of -1,300% [12] - The company has not surpassed consensus EPS estimates in any of the last four quarters [13] Industry Comparison - Duos Technologies Group, Inc. (DUOT), another player in the Zacks Technology Services industry, is expected to report a loss of $0.18 per share, indicating a year-over-year change of +52.6% [17] - DUOT's revenues are projected to be $4.3 million, up 301.9% from the previous year [17]

Core Viewpoint - Bitdeer Technologies Group is set to announce its first quarter 2025 earnings results on May 15, 2025, at 8:00 AM EST, with a conference call to follow for discussion and Q&A [1][2]. Company Overview - Bitdeer is a leading technology company specializing in Bitcoin mining, providing comprehensive solutions including equipment procurement, logistics, datacenter design, and daily operations [5]. - The company is headquartered in Singapore and has datacenters deployed in the United States, Norway, and Bhutan [5]. Conference Call Details - The earnings results will be released at approximately 7:00 AM EST on May 15, 2025, prior to the conference call [2]. - Participants can join the call by registering through a provided link, receiving necessary access details via email [3]. - A live and archived webcast of the conference call will be available on Bitdeer's Investor Relations website [4].

Industry Dynamics - The cryptocurrency industry is characterized by constant changes, and failure to innovate may adversely affect the company's ability to attract and retain customers[52] - The company's results of operations are significantly impacted by Bitcoin price fluctuations, which are expected to continue[46] - The appreciation potential of Bitcoin is influenced by its finite supply of 21 million and the "halving" mechanism, which reduces mining rewards approximately every four years[56] - The cryptocurrency market experienced significant turmoil in 2022, with multiple companies declaring bankruptcy, including FTX and Celsius, contributing to a loss of confidence and liquidity in the digital asset markets[145] - The growth of alternative blockchain networks using different consensus algorithms may adversely affect the company's business, as PoW networks could lose market share[158] Financial Performance - The company incurred net losses of $599.2 million for the year ended December 31, 2024, following losses of $60.4 million and $56.7 million in the previous two years[64] - Total revenue for the years ended December 31, 2022, 2023, and 2024 was $333.3 million, $368.6 million, and $349.8 million, respectively, indicating a decline in 2024[65] - The company experienced negative cash flows from operating activities of $268.0 million, $271.8 million, and $622.1 million for the years ended December 31, 2022, 2023, and 2024, respectively[64] - The company may encounter practical difficulties in commercializing research and development results, leading to excessive expenses or delays[54] - The company may face significant costs related to maintaining and protecting its intellectual property rights, which could adversely affect its financial condition[113] Operational Risks - Delays in the expansion of existing mining datacenters or construction of new ones could materially affect the company's financial condition and results of operations[46] - The company is capital intensive and may require additional capital, which may not be obtainable on favorable terms[49] - The ASIC and mining rig business relies on a third-party foundry partner, and any failure to secure sufficient capacity could delay product shipments[49] - The company is subject to significant electric power needs, which account for a substantial portion of its cost of revenue[67] - Cryptocurrency mining operations are vulnerable to power outages, which could lead to significant downtime and adversely impact financial results[71] Regulatory Environment - The company faces risks related to the evolving regulatory landscape, which could adversely affect its business and operations[53] - The Department of the Treasury proposed a phased 30% excise tax on electricity used by digital asset miners, which could materially affect operations if restrictions are imposed[70] - The U.S. regulatory landscape is evolving, with significant scrutiny from agencies like the SEC and CFTC, which could adversely affect the company's operations and financial condition[184] - The company is exposed to higher corruption risks due to the need for frequent governmental interactions in a fast-changing regulatory landscape[203] - The company may incur substantial expenses and management time to rectify incidents of non-compliance with government regulations, which could adversely affect its financial condition[204] Market Competition - Intense competition in the cryptocurrency mining industry may lead to aggressive pricing strategies, negatively impacting market share and profitability[74] - Average selling prices of products and services may fluctuate due to technological advancements and market conditions, affecting gross profit margins[75] - The supply and pricing of cryptocurrency mining hardware are influenced by Bitcoin price movements, which may affect the ability to expand hosting services[86] - There are only a few manufacturers capable of producing high-quality mining rigs at scale, which could impact the demand for hosting services if supply does not meet demand[87] - The company emphasizes the importance of maintaining brand recognition and quality standards to compete effectively in the market[111] Strategic Initiatives - The company is developing two new business lines: ASIC and mining rig business, and HPC and AI cloud business, aiming to diversify revenue streams and accelerate growth[99] - The company plans to increase reliance on renewable power sources, which may present challenges due to their intermittent nature[68] - The company plans to expand its mining capacity to approximately 2,689 MW, with 1,794 MW power supply in the pipeline by March 31, 2025[106] - The integration of AI into infrastructure services is underway, with the deployment of the NVIDIA DGX SuperPOD H100 system, which is expected to grow[98] - The company acquired Le Freeport in Singapore in 2022 and completed the Norway Acquisition and FreeChain Acquisition in 2024, diversifying its business portfolio[104] Cybersecurity and Custody Risks - The company may face significant costs to protect against cybersecurity threats, which could adversely affect its financial condition and results of operations[125] - Substantially all cryptocurrencies are held in custody by Matrixport Group, and the company relies on their security procedures, although there is no guarantee against loss due to breaches or other issues[148] - The company may consider using regulated banks for cryptocurrency custody services to improve security, but banks have generally been reluctant to offer such services due to regulatory uncertainties[149] - The cryptocurrencies held by the company may be subject to loss, damage, theft, or restricted access, which could have a material adverse effect on its financial condition[162] - The company faces potential risks related to the treatment of cryptocurrencies held in custody in the event of a bankruptcy filing by the custodian, which could classify the assets as part of the bankruptcy estate[152] Economic and Geopolitical Factors - Geopolitical and economic events could lead to large-scale sales of cryptocurrencies, resulting in price reductions that may adversely affect the company's business[165] - Any global economic crisis could negatively affect the company's business and financial condition, with potential declines in revenue[127] - Changes in international trade policies and tariffs could adversely impact financial conditions and international sales[128] - The lack of consistent climate legislation creates uncertainty for the industry, particularly regarding Bitcoin mining's energy usage[135] - Concerns about greenhouse gas emissions may lead to environmental taxes that could increase operational costs[134]