BITDEER(BTDR) - 2025 Q2 - Quarterly Report

Q2 2025 Unaudited Financial Results Overview Q2 2025 Financial Highlights Bitdeer reported strong Q2 2025 financial results with significant revenue growth driven by self-mining and SEALMINER sales, despite increased revenue, gross profit and Adjusted EBITDA decreased, while net loss significantly widened Q2 2025 Financial Performance Highlights | Metric | Q2 2025 (US$ million) | Q2 2024 (US$ million) | YoY Change | | :--------------------- | :-------------------- | :-------------------- | :--------- | | Total Revenue | 155.6 | 99.2 | +56.8% | | Revenue from external sale of SEALMINER A2s | 69.5 | - | N/A | | Gross Profit | 12.8 | 24.4 | -47.5% | | Net Loss | (147.7) | (17.7) | +734.5% | | Adjusted EBITDA | 17.3 | 23.5 | -26.4% | | Cash and cash equivalents (as of June 30, 2025) | 299.8 | 203.9 (Q2 2024) | +47.0% | | Crypto balance (as of June 30, 2025) | 169.3 | 113 (Q2 2024) | +49.8% | Management Commentary Management highlighted Q2 as a key inflection point with rapid revenue growth and progress towards self-mining hashrate targets, focusing R&D on the next-generation SEALMINER A4 chip for improved efficiency and actively expanding global power and datacenter infrastructure, including advanced negotiations for HPC/AI initiatives - Q2 revenue growth was driven by strong self-mining business and external sales of SEALMINER A2s, with expectations for continued sequential improvement in financial results[3] - Bitdeer is on track to achieve 40 EH/s of self-mining by the end of October 2025 and expects to exceed this target by year-end due to improved wafer supply[1][3] - R&D efforts are focused on the SEALMINER A4 project, targeting an unprecedented chip efficiency of approximately 5 J/TH, aiming to position Bitdeer as a leading supplier of energy-efficient mining rigs[3] - Year-to-date, 361 MW of datacenter capacity has been energized for self-mining, bringing total available electrical capacity to approximately 1.3 GW, with a target of over 1.6 GW by year-end; advanced negotiations are underway for HPC/AI initiatives at the Clarington, Ohio site[1][6] Operational Summary Bitdeer significantly increased its proprietary hashrate and self-owned mining rigs in Q2 2025 compared to Q2 2024, while total hashrate under management also grew, maintaining stable electricity costs and improved miner efficiency, with power infrastructure development actively expanding and substantial pipeline capacity planned Operational Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------- | :------ | :------ | :--------- | | Total hash rate under management (EH/s) | 30.6 | 22.3 | +37.2% | | - Proprietary hash rate (EH/s) | 16.7 | 8.5 | +96.5% | | - Self-mining (EH/s) | 16.5 | 7.3 | +126.0% | | Mining rigs under management | 200,000 | 223,000 | -10.3% | | - Self-owned | 114,000 | 86,000 | +32.6% | | Bitcoin mined (self-mining only) | 565 | 628 | -9.9% | | Bitcoins held | 1,502 | 113 | +1229.2% | | Average miner efficiency (J/TH) | 25.7 | 31.6 | -18.7% | Power Infrastructure Capacity (as of July 31, 2025) | Category | Capacity (MW) | | :------------------------------- | :------------ | | Total Electrical Capacity (Online) | 1,257 | | Total Pipeline Capacity (In progress/planning) | 1,433 | | Total Global Electrical Capacity | 2,690 | Financial Discussion and Analysis (MD&A) Revenue Analysis Total revenue significantly increased year-over-year, primarily driven by strong self-mining performance due to higher hashrate and Bitcoin prices, and substantial sales of SEALMINERs, while Cloud Hash Rate and Hosting revenues declined due to contract expirations and customers scaling down less efficient operations post-halving Revenue Breakdown (Q2 2025 vs. Q2 2024) | Business Line | Q2 2025 (US$ million) | Q2 2024 (US$ million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Total Revenue | 155.6 | 99.2 | +56.8% | | Self-Mining Revenue | 59.3 | 41.6 | +42.6% | | Cloud Hash Rate Revenue | 0.0 | 12.2 | -100% | | General Hosting Revenue | 9.3 | 20.6 | -54.9% | | Membership Hosting Revenue | 14.6 | 22.1 | -33.9% | | SEALMINER Sales Revenue | 69.5 | 0.0 | N/A | | HPC and AI Cloud Revenue | 1.3 | N/A | N/A | - Self-mining revenue increased due to a 103.3% increase in average self-mining hashrate (14.2 EH/s from 7.0 EH/s) and higher Bitcoin prices, partially offset by the April 2024 halving event and higher mining difficulty[12] - Cloud Hash Rate revenue declined to zero primarily due to the expiration of long-term contracts and subsequent reallocation of nearly all machines to self-mining operations by the end of 2024[12] - General and Membership Hosting revenues decreased due to the expiration of certain contracts and customers scaling down operations for older, less efficient rigs following the April 2024 halving[18] Cost of Revenue, Gross Profit and Margin Cost of revenue significantly increased, primarily due to SEALMINER sales and higher depreciation expenses, which led to a substantial decrease in gross profit and gross margin despite higher total revenue Cost of Revenue and Gross Profit (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (US$ million) | Q2 2024 (US$ million) | YoY Change | | :---------------- | :-------------------- | :-------------------- | :--------- | | Cost of Revenue | 142.8 | 74.8 | +90.9% | | Gross Profit | 12.8 | 24.4 | -47.5% | | Gross Margin | 8.2% | 24.6% | -16.4 pp | - The increase in cost of revenue was primarily driven by the costs of SEALMINERs sold to customers, depreciation expenses for SEALMINERs launched in datacenters during 2025, and an increase in employees and related salaries, wages, and benefits[13] Operating Expenses Total operating expenses increased significantly year-over-year, primarily driven by a substantial rise in Research and Development expenses related to ASIC development and amortization, and higher General and Administrative costs, while Selling expenses decreased Operating Expenses (Q2 2025 vs. Q2 2024) | Expense Category | Q2 2025 (US$ million) | Q2 2024 (US$ million) | YoY Change | | :----------------------- | :-------------------- | :-------------------- | :--------- | | Total Operating Expenses | 42.3 | 26.1 | +62.1% | | Selling Expenses | 1.6 | 2.2 | -25.2% | | General and Administrative Expenses | 20.1 | 15.9 | +27.0% | | Research and Development Expenses | 20.6 | 8.0 | +155.7% | - Research and development expenses increased by 155.7% year-over-year, primarily due to higher engineering costs related to the Company's ASIC development roadmap and non-cash amortization expenses of intangible assets related to the acquisition of FreeChain in Q4 2024[19] Other Net Loss and Net Loss The company reported a substantial increase in net loss, primarily due to a significant 'Other net loss' driven by non-cash fair value changes of derivative liabilities related to convertible notes and Tether warrants, as well as loss on extinguishment of convertible notes Net Loss (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (US$ million) | Q2 2024 (US$ million) | YoY Change | | :------- | :-------------------- | :-------------------- | :--------- | | Net Loss | (147.7) | (17.7) | +734.5% | - Other net loss was US$108.5 million, primarily due to non-cash fair value changes of derivative liabilities, including US$75.4 million loss on convertible notes, US$15.8 million loss on Tether warrants, and US$16.2 million loss on extinguishment of convertible notes[15] Adjusted Profit / (Loss) and Adjusted EBITDA (Non-IFRS) Adjusted EBITDA and Adjusted Profit/(Loss) both decreased year-over-year, primarily attributed to lower gross profit margins and higher operating expenses, with the company revising its non-IFRS definitions for comparability Adjusted Non-IFRS Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (US$ million) | Q2 2024 (US$ million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Adjusted EBITDA | 17.3 | 23.5 | -26.4% | | Adjusted Loss | (24.4) | 3.2 (Adjusted Profit) | N/A | - The definition of non-IFRS Adjusted Profit and Adjusted EBITDA was revised, resulting in a US$1.3 million revision to Q2 2024 metrics, to exclude non-cash fair value changes in cryptocurrency-settled receivables and payables for better comparability[4] Cash Flows Net cash used in operating activities significantly increased, driven by payments for SEALMINER wafers and production, and initial tapeout costs for SEAL04, while net cash generated from financing activities was substantial due to proceeds from convertible senior notes and related party borrowings, and net cash used in investing activities was modest Net Cash Flows (Q2 2025) | Activity | Q2 2025 (US$ million) | | :---------------------- | :-------------------- | | Net cash used in operating activities | (334.9) | | Net cash used in investing activities | (12.6) | | Net cash generated from financing activities | 431.5 | - Net cash used in operating activities was primarily driven by approximately US$230 million of payments for SEALMINER wafers and production supply chain, and approximately US$27 million related to the initial tapeout of SEAL04[27] - Net cash generated from financing activities was primarily driven by US$364.3 million proceeds from convertible senior notes, US$180.0 million borrowings from a related party, and US$50.0 million proceeds from issuance of shares for exercise of Tether warrants[27] Capital Expenditures Bitdeer maintained its prior guidance for 2025 power and datacenter infrastructure capital expenditures, with significant investment in datacenter infrastructure and related construction - 2025 power and datacenter infrastructure capex maintained at prior guidance range of US$260 million to US$290 million[22] - Capital expenditures in Q2 2025 totaled US$106.5 million, with approximately US$76 million related to datacenter infrastructure and related construction[27] Balance Sheet Highlights As of June 30, 2025, Bitdeer reported increased cash and cash equivalents, a significant rise in cryptocurrency holdings, and substantial increases in prepayments and inventories, reflecting investments in SEALMINER production, while derivative liabilities remained high due to convertible senior notes Key Balance Sheet Items (as of June 30, 2025) | Item | Amount (US$ million) | Change vs. Dec 31, 2024 | | :-------------------- | :------------------- | :---------------------- | | Cash and cash equivalents | 299.8 | -176.5 (from 476.3) | | Cryptocurrencies | 169.3 | +91.8 (from 77.5) | | Borrowings | 533.1 | +325.0 (from 208.1) | | Prepayments and other assets | 465.2 | +155.0 (from 310.2) | | Inventories | 208.8 | +143.9 (from 64.9) | | Derivative liabilities | 438.0 | -325.9 (from 763.9) | - The increase in prepayments and other assets, and inventories, was primarily driven by advanced payments to suppliers for SEALMINER mass volume production and wafers, chips, WIP, and finished SEALMINER inventory[28] Consolidated Financial Statements Consolidated Statements of Financial Position The consolidated balance sheet shows total assets increased to US$2,041.1 million as of June 30, 2025, from US$1,557.9 million at December 31, 2024, with key changes including significant increases in cryptocurrencies, mining rigs, property, plant and equipment, and inventories, alongside a decrease in cash and cash equivalents, while total liabilities also increased, driven by borrowings, and derivative liabilities decreased Total Assets and Liabilities (June 30, 2025 vs. Dec 31, 2024) | Item | June 30, 2025 (US$ thousands) | Dec 31, 2024 (US$ thousands) | | :---------------- | :---------------------------- | :---------------------------- | | TOTAL ASSETS | 2,041,070 | 1,557,854 | | TOTAL LIABILITIES | 1,334,319 | 1,281,256 | Key Asset Changes (June 30, 2025 vs. Dec 31, 2024) | Asset Category | June 30, 2025 (US$ thousands) | Dec 31, 2024 (US$ thousands) | Change (US$ thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | :--------------------- | | Cash and cash equivalents | 299,792 | 476,270 | (176,478) | | Cryptocurrencies | 169,340 | 77,537 | 91,803 | | Inventories | 208,782 | 64,888 | 143,894 | | Mining rigs | 211,031 | 67,324 | 143,707 | | Property, plant and equipment | 360,780 | 251,377 | 109,403 | Key Liability Changes (June 30, 2025 vs. Dec 31, 2024) | Liability Category | June 30, 2025 (US$ thousands) | Dec 31, 2024 (US$ thousands) | Change (US$ thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | :--------------------- | | Derivative liabilities | 437,953 | 763,939 | (325,986) | | Borrowings | 359,684 | 208,127 | 151,557 | | Borrowings from a related party | 90,000 | - | 90,000 | Consolidated Statements of Operations and Comprehensive Income / (Loss) For Q2 2025, Bitdeer reported a net loss of US$147.7 million, a significant increase from Q2 2024, despite a substantial increase in total revenue, primarily due to a higher cost of revenue, increased operating expenses (especially R&D), and a large 'Other net loss' Income Statement Highlights (Three Months Ended June 30) | Metric | Q2 2025 (US$ thousands) | Q2 2024 (US$ thousands) | YoY Change | | :------------------------------------ | :---------------------- | :---------------------- | :--------- | | Revenue | 155,582 | 99,229 | +56.8% | | Cost of revenue | (142,762) | (74,824) | +90.8% | | Gross profit | 12,820 | 24,405 | -47.5% | | Selling expenses | (1,626) | (2,173) | -25.2% | | General and administrative expenses | (20,138) | (15,852) | +27.0% | | Research and development expenses | (20,577) | (8,048) | +155.7% | | Other net gain / (loss) | (108,451) | (15,467) | +601.2% | | Profit / (loss) for the period | (147,733) | (17,743) | +734.9% | | Basic Earnings / (loss) per share (US$) | (0.76) | (0.14) | +442.9% | Condensed Consolidated Statements of Cash Flows In Q2 2025, Bitdeer experienced significant cash outflow from operating activities, primarily due to payments for production supplies, largely offset by substantial cash inflows from financing activities, mainly from convertible senior notes and related party borrowings, resulting in a net increase in cash and cash equivalents for the quarter Cash Flow Summary (Three Months Ended June 30) | Activity | Q2 2025 (US$ thousands) | Q2 2024 (US$ thousands) | | :------------------------------------ | :---------------------- | :---------------------- | | Net cash used in operating activities | (334,871) | (74,124) | | Net cash generated from / (used in) investing activities | (12,623) | 54,268 | | Net cash generated from financing activities | 431,490 | 105,098 | | Net increase / (decrease) in cash and cash equivalents | 83,996 | 85,242 | | Cash and cash equivalents at end of period | 299,792 | 203,882 | - Operating cash outflow was significantly higher year-over-year, indicating increased investment in production and operations, including payments for SEALMINER wafers and the initial tapeout of SEAL04[33] - Financing activities provided substantial cash, primarily from proceeds of convertible senior notes (US$364.3 million) and borrowings from a related party (US$180.0 million)[33] Non-IFRS Financial Measures Use of Non-IFRS Financial Measures Bitdeer uses non-IFRS measures, Adjusted EBITDA and Adjusted Profit/(Loss), to evaluate operating performance and formulate business plans, excluding share-based payment expenses, fair value changes of derivative liabilities and cryptocurrency-settled items, and loss on extinguishment of convertible senior notes, to provide a clearer view of core operations - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude share-based payment expenses, changes in fair value of derivative liabilities, changes in fair value of cryptocurrency-settled receivables and payables, and loss on extinguishment of convertible senior notes[34] - Adjusted Profit/(Loss) is defined as profit/(loss) adjusted to exclude share-based payment expenses, changes in fair value of derivative liabilities, changes in fair value of cryptocurrency-settled receivables and payables, and loss on extinguishment of convertible senior notes[34] - These non-IFRS measures are used by management to evaluate operating performance and formulate business plans, and are presented to facilitate investors' assessment, but should not be considered in isolation from, or as a substitute analysis for, IFRS profit or loss[35] Adjusted EBITDA and Adjusted Profit / (Loss) Reconciliation The reconciliation table details the adjustments made to IFRS profit/(loss) to arrive at Adjusted EBITDA and Adjusted Profit/(Loss), with significant adjustments for Q2 2025 including depreciation and amortization, interest expense, share-based payment expenses, and large changes in fair value of derivative liabilities Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Item | Q2 2025 (US$ thousands) | Q2 2024 (US$ thousands) | | :------------------------------------ | :---------------------- | :---------------------- | | Profit / (loss) for the period | (147,733) | (17,743) | | Add: Depreciation and amortization | 26,445 | 18,304 | | Add: Income tax (benefit) / expenses | (197) | 1,995 | | Add: Interest (income) / expense, net | 15,451 | (9) | | Add: Share-based payment expenses | 10,170 | 8,093 | | Add: Changes in fair value of derivative liabilities | 91,241 | 14,230 | | Add: Changes in fair value of cryptocurrency-settled receivables and payables | 5,740 | (1,337) | | Add: Loss on extinguishment of convertible senior notes | 16,194 | - | | Total of Adjusted EBITDA | 17,311 | 23,533 | Adjusted Profit / (Loss) Reconciliation (Three Months Ended June 30) | Item | Q2 2025 (US$ thousands) | Q2 2024 (US$ thousands) | | :------------------------------------ | :---------------------- | :---------------------- | | Profit / (loss) for the period | (147,733) | (17,743) | | Add: Share-based payment expenses | 10,170 | 8,093 | | Add: Changes in fair value of derivative liabilities | 91,241 | 14,230 | | Add: Changes in fair value of cryptocurrency-settled receivables and payables | 5,740 | (1,337) | | Add: Loss on extinguishment of convertible senior notes | 16,194 | - | | Total of Adjusted Profit / (Loss) | (24,388) | 3,243 | Additional Company Information About Bitdeer Technologies Group Bitdeer Technologies Group is a world-leading technology company specializing in Bitcoin mining, offering comprehensive solutions from equipment procurement to daily operations, also providing advanced cloud capabilities for AI, with datacenters in the US, Norway, and Bhutan - Bitdeer is a world-leading technology company for Bitcoin mining, providing comprehensive solutions including equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations[24] - The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence[24] - Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan[24] Forward-Looking Statements The report contains forward-looking statements regarding future expectations, plans, and prospects, which are subject to various important factors and risks, and Bitdeer disclaims any obligation to update these statements - Statements in the press release about future expectations, plans, and prospects constitute 'forward-looking statements' within the meaning of The Private Securities Litigation Reform Act of 1995[26] - Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the 'Risk Factors' section in Bitdeer's annual report on Form 20-F[26] - Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise[29] Investor and Media Inquiries Contact information for investor relations, media, and public relations is provided for inquiries regarding Bitdeer Technologies Group - Investor Relations contact: Yujia Zhai, Orange Group (bitdeerIR@orangegroupadvisors.com)[38] - Media contact: Jessica Starman, MBA, Elev8 New Media (bitdeer@news8media.com)[38] - Public Relations contact: Nishant Sharma, BlocksBridge Consulting (bitdeer@blocksbridge.com)[38]