BITDEER(US:BTDR)2023-04-27 16:00Financial Performance - Revenue increased by 111.7% from US$186.4 million in 2020 to US$394.7 million in 2021, but decreased to US$333.3 million in 2022 [325]. - The company incurred a net loss of US$60.4 million for the year ended December 31, 2022, following a net profit of US$82.6 million in 2021 [325]. - Adjusted EBITDA was US$93.2 million for the year ended December 31, 2022, down from US$281.8 million in 2021 [325]. - Total revenue for the year ended December 31, 2022, was $333,342, a decrease from $394,661 in 2021 [454]. - Gross profit for 2022 was $83,252, compared to $241,406 in 2021, indicating a significant decline [454]. - Revenue decreased by 15.6% from US$394.7 million for the year ended December 31, 2021, to US$333.3 million for the year ended December 31, 2022 [458]. - The company recorded a loss from operations of US$60.6 million for the year ended December 31, 2022, compared to a profit of US$130.8 million in 2021 [471]. Mining Operations - As of March 31, 2023, the total managing hash rate reached 18.3 EH/s, comprising 5.7 EH/s proprietary hash rate and 12.6 EH/s hosting hash rate [322]. - The company has established five proprietary mining datacenters in the United States and Norway, with a total electricity capacity of 795 MW as of March 31, 2023 [322]. - The company plans to expand its total electricity capacity to approximately 1,524 MW, including 179 MW under construction and 550 MW in the pipeline [332]. - The Texas mining datacenter has an operational capacity of 563MW and an additional 179MW under construction as of March 31, 2023 [366]. - The Norway mining datacenters have a combined operational capacity of 134MW, with plans to add 175MW from expansions [366]. - The company operates three proprietary mining datacenters in the U.S. and two in Norway, with a total electricity capacity of 795MW as of March 31, 2023 [364]. - The company expects to generate 100MW from the 550MW power supply "in the pipeline" from Bhutan, with construction of the mining datacenter starting in Q2 2023 and completing in Q3 2023 [368]. Revenue Streams - Proprietary mining revenue for the years ended December 31, 2020, 2021, and 2022 was US$88.5 million, US$191.7 million, and US$62.4 million, respectively [335]. - Cloud Hash Rate revenue for the years ended December 31, 2020, 2021, and 2022 was US$78.3 million, US$124.2 million, and US$121.3 million, respectively [337]. - Revenue from Cloud Hosting increased from US$2.9 million in 2020 to US$12.7 million in 2022 [340]. - General Hosting revenue grew significantly from US$18.3 million in 2021 to US$99.3 million in 2022 [341]. - Membership Hosting generated US$26.1 million in revenue for the year ended December 31, 2022, with no revenue prior to that [343]. - Revenue from proprietary mining decreased by 67.4% from US$191.7 million in 2021 to US$62.4 million in 2022, primarily due to a drop in Bitcoin prices and a decrease in the number of Bitcoins mined [459]. - Revenue from sales of mining machines decreased by 98.5% from US$45.7 million in 2021 to US$0.7 million in 2022, attributed to a reduction in the number of machines sold [460]. Cost and Expenses - Cost of revenue increased by 63.1% from US$153.3 million in 2021 to US$250.1 million in 2022, mainly due to rising electricity costs and increased salaries [463]. - Electricity costs in operating mining machines surged by 138.9% from US$58.4 million in 2021 to US$139.5 million in 2022, linked to expanded mining operations [466]. - Salaries, wages, and other benefits attributed to cost of revenue rose by 89.4% from US$9.4 million in 2021 to US$17.8 million in 2022, reflecting workforce expansion [467]. - Research and development expenses rose to $35,430 in 2022, up from $29,501 in 2021, reflecting increased investment in technology [454]. - Selling expenses increased to $11,683 in 2022, compared to $8,448 in 2021, indicating higher costs associated with sales efforts [454]. Market and Competition - The company faces intense competition from various well-established players in the cryptocurrency mining industry, which may affect its market position [387]. - The company competes globally in the mining business based on the total number of mining machines, mining efficiency, and access to electricity and technologies [384]. - The company is actively monitoring government regulations regarding cryptocurrencies, which are evolving and could have a material impact on its operations [391]. Strategic Initiatives - The company aims to focus on expanding General Hosting and Membership Hosting services to maximize asset utilization and operational efficiency [345]. - The company plans to expand its offerings by launching new services covering various crypto protocols, including Proof-of-Stake and Delegated Proof-of-Stake [424]. - The company has established a fund to purchase mining machines from financially distressed miners, capitalizing on market volatility [419]. - The company is exploring the feasibility of using solar power to support its mining datacenters [383]. Leadership and Management - The management team is led by founder Jihan Wu, who has a proven track record in the cryptocurrency industry [333]. - Jihan Wu has been the Chairman of the Board since January 2021, co-founding Bitdeer and previously serving as Chairman and CEO of BitMain from September 2018 to January 2021 [516]. - The company is focused on expanding its market presence and enhancing its operational capabilities through strategic initiatives [516]. Intellectual Property - The company owned eight registered patents, 11 registered copyrights, 151 registered trademarks, and 196 registered domain names as of March 31, 2023, indicating a strong focus on intellectual property [388]. Cash Flow and Financing - Cash and cash equivalents decreased to US$231.4 million as of December 31, 2022, from US$372.1 million in 2021, primarily due to investments in mining datacenters [489]. - Net cash used in operating activities was US$268.0 million for the year ended December 31, 2022, compared to US$52.5 million in 2021 and US$109.2 million in 2020 [497][498][501]. - The company may need to seek additional equity or debt financing if current liquidity sources are insufficient, which could lead to shareholder dilution [494].