BITDEER(US:BTDR)2024-03-28 20:20Financial Performance - For the years ended December 31, 2021, 2022, and 2023, the company's total net revenue was US$394.7 million, US$333.3 million, and US$368.6 million, respectively, with net profits of US$82.6 million in 2021 and net losses of US$60.4 million and US$56.7 million in 2022 and 2023[343]. - Revenue for the year 2023 was $368,554 thousand, an increase from $333,342 thousand in 2022 but a decrease from $394,661 thousand in 2021[495]. - Total revenue increased by 10.6% from US$333.3 million in 2022 to US$368.6 million in 2023, driven by self-mining and Membership Hosting revenue growth[502]. - Self-mining revenue surged by 79.1% from US$62.4 million in 2022 to US$111.7 million in 2023, attributed to increased hash rate and Bitcoin price appreciation[504]. - Cloud Hash Rate revenue decreased by 44.1% from US$121.3 million in 2022 to US$67.9 million in 2023, primarily due to declines in hash rate and electricity subscriptions[505]. - Membership Hosting revenue rose significantly by 206.7% from US$26.1 million in 2022 to US$79.9 million in 2023, following capacity delivery from a North American datacenter[506]. - The company reported a loss of US$56,656,000 for the year 2023, an improvement from a loss of US$60,366,000 in 2022[447]. - The company experienced a net loss of $56,656 thousand for the year 2023, compared to a loss of $60,366 thousand in 2022[495]. Mining Operations - As of February 29, 2024, the company operates six mining datacenters with a total electricity capacity of 895MW and a total hash rate under management of 22.0 EH/s, comprising 8.4 EH/s proprietary hash rate and 13.6 EH/s hosting hash rate[339][343][348]. - The company has a plan to expand its total electricity capacity to approximately 1,970MW, including 575MW under construction and 500MW contracted but not yet under active construction[351]. - The company plans to commence construction of a 221MW datacenter in Ohio, United States, with completion expected in 2025[351]. - The company operates three mining datacenters in the U.S., two in Norway, and one in Bhutan, with a total electricity capacity of 895MW as of February 29, 2024[391]. - The company is exploring new sites for mining datacenters, focusing on North America, Northern Europe, Central Asia, and Southeast Asia[394]. - The average electricity cost for the company's mining datacenters was US$38/MWh for the year ended December 31, 2023, supported by strategic site selection and operational expertise[351]. - The average energy consumption decreased from 39.2j/T as of December 31, 2021 to 31.7j/T as of December 31, 2023[405]. - The ratio of carbon-free power supply reached approximately 62% as of December 31, 2023, expected to rise to around 69% upon completion of all mining datacenters in the pipeline[407]. Revenue Sources - The company generated US$191.7 million, US$62.4 million, and US$111.7 million in revenue from self-mining for the years ended December 31, 2021, 2022, and 2023, respectively[354]. - Revenue from Cloud Hash Rate for the years ended December 31, 2021, 2022, and 2023 was US$124.2 million, US$121.3 million, and US$67.9 million, respectively[358]. - Revenue from General Hosting for the years ended December 31, 2021, 2022, and 2023 was US$18.3 million, US$99.3 million, and US$97.3 million, respectively[364]. - Revenue from Membership Hosting was US$26.1 million and US$79.9 million for the years ended December 31, 2022, and 2023, respectively, with no revenue generated prior to December 31, 2021[365]. - 96.9%, 96.1%, and 98.8% of self-mining revenue for the years ended December 31, 2021, 2022, and 2023, respectively, were generated from Bitcoin mining[374]. - 93.4%, 95.7%, and 99.1% of Cloud Hash Rate revenue for the years ended December 31, 2021, 2022, and 2023, respectively, were generated from Bitcoin mining[375]. Costs and Expenses - Cost of revenue for 2023 was $290,745 thousand, up from $250,090 thousand in 2022 and significantly higher than $153,255 thousand in 2021[495]. - Electricity costs for operating mining machines rose by 29.5% from US$139.5 million in 2022 to US$180.6 million in 2023, linked to expanded datacenter operations[507]. - General and administrative expenses decreased by 28.9% from US$93.5 million in 2022 to US$66.5 million in 2023, primarily due to reduced share-based payment expenses[510]. - Research and development expenses fell by 16.6% from US$35.4 million in 2022 to US$29.5 million in 2023, driven by lower share-based payment expenses[511]. - The depreciation of mining machines decreased by 12.4% from US$29.3 million in 2022 to US$25.7 million in 2023, due to older machines being fully depreciated[508]. Strategic Partnerships and Innovations - The company entered into a partnership with NVIDIA in October 2023 to offer NVIDIA DGX SuperPOD H100 services, becoming the first cloud service platform in Asia to provide this service[342]. - The company successfully tested its first Bitcoin mining chip, the SEAL01, in March 2024, which will be integrated into new SEALMINER A1 mining machines for expansion in self-mining operations[355]. - The company completed the deployment and successful testing of its NVIDIA DGX SuperPOD H100 system in March 2024, becoming the first cloud service platform in the Asian region to offer this service[373]. Regulatory and Compliance - The company has established anti-money laundering (AML) processes and know your customer (KYC) procedures to prevent unauthorized access to its hash rate products[370]. - The company is actively monitoring regulatory changes that could materially affect its business operations and financial condition[424]. - The company does not anticipate engaging in cryptocurrency lending or investing activities in the foreseeable future due to regulatory concerns[383]. Intellectual Property and Research - The company owns 13 registered patents, 11 registered copyrights, and 252 registered trademarks as of December 31, 2023, highlighting its focus on intellectual property[420]. - The company has invested in research and development, with the core technical team averaging over eight years of experience in the cryptocurrency industry[410]. Market Position and Competition - The company faces intense competition in the cryptocurrency mining industry from larger competitors with greater resources and economies of scale[418]. - The company aims to maintain its leadership position in proprietary hash rate by strategically allocating resources between self-mining and hash rate sharing[455].