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BITDEER(BTDR) - 2024 Q4 - Earnings Call Transcript
BTDRBITDEER(BTDR)2025-02-26 01:37
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Financial Data and Key Metrics Changes - For Q4 2024, total revenue was 69million,downfrom69 million, down from 114.8 million in Q4 2023. Self-mining revenue decreased by 11.5% to 41.5million,primarilyduetotheApril2024halvingandincreasedglobalnetworkhashrate[9][38]−GrossprofitforQ42024was41.5 million, primarily due to the April 2024 halving and increased global network hashrate [9][38] - Gross profit for Q4 2024 was 5.1 million, with a gross margin of 7.4%, compared to 27millionand23.527 million and 23.5% in Q4 2023. Adjusted EBITDA was negative 3.8 million [40][44] - Full-year 2024 revenue totaled 349.8million,withagrossprofitof349.8 million, with a gross profit of 66.4 million and adjusted EBITDA of 39.4million[45]BusinessLineDataandKeyMetricsChanges−Cloudhashraterevenuefellto39.4 million [45] Business Line Data and Key Metrics Changes - Cloud hashrate revenue fell to 2.3 million from 16.2million,attributedtotheexpirationoflong−termcontractsandreallocationofhashratetoself−mining[39]−Generalhostingrevenuedecreasedto16.2 million, attributed to the expiration of long-term contracts and reallocation of hashrate to self-mining [39] - General hosting revenue decreased to 8.5 million from 25.2million,whilemembershiphostingrevenuedroppedto25.2 million, while membership hosting revenue dropped to 12.4 million from 23.4million,mainlyduetocontractexpirationsandremovaloflessefficientmachines[39]MarketDataandKeyMetricsChanges−Thecompanyreportedanincreaseinaverageself−mininghashrateto8.4exahashfrom7exahashyear−over−year,whichpartiallyoffsetrevenuedeclines[38]−TheglobalnetworkhashrateincreaseandtheApril2024halvingnegativelyimpactedrevenueandgrossprofitmargins[10][41]CompanyStrategyandDevelopmentDirection−Thecompanyaimstobuildafullyvertically−integratedbusiness,includingdevelopingitsownpowergenerationassetsandmininghardware.Asignificantacquisitionwasmadefora19−acresitefora101megawattgas−firedpowerplantinAlberta[12][13]−ThestrategyincludesdevelopingASICtechnologytodifferentiatefromcompetitorsandpenetratethe23.4 million, mainly due to contract expirations and removal of less efficient machines [39] Market Data and Key Metrics Changes - The company reported an increase in average self-mining hashrate to 8.4 exahash from 7 exahash year-over-year, which partially offset revenue declines [38] - The global network hashrate increase and the April 2024 halving negatively impacted revenue and gross profit margins [10][41] Company Strategy and Development Direction - The company aims to build a fully vertically-integrated business, including developing its own power generation assets and mining hardware. A significant acquisition was made for a 19-acre site for a 101 megawatt gas-fired power plant in Alberta [12][13] - The strategy includes developing ASIC technology to differentiate from competitors and penetrate the 4 billion to 5billionannualASICmarket[11][18]−Thecompanyplanstorampupself−mininghashratesignificantlybydeployingnewSEALMINERmachines,targetingapproximately40exahashbyQ42025[29][33]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthefuture,highlightingthat2025isexpectedtobeapivotalyearasstrategicinitiativesbegintoyieldresults[35]−Thecompanyiscloselymonitoringthecompetitivelandscape,particularlyregardingU.S.−basedminersfacingdelaysduetotradetensions,buthasnotexperienceddirectimpacts[58][60]OtherImportantInformation−Thecompanyhassecuredover2.6gigawattsofpowercapacity,withplanstoenergizeabout1gigawattin2025,whichwillsupportbothself−miningandpotentialHPCandAIdatacenteroperations[33]−Thecompanyhasastrongcashpositionwith5 billion annual ASIC market [11][18] - The company plans to ramp up self-mining hashrate significantly by deploying new SEALMINER machines, targeting approximately 40 exahash by Q4 2025 [29][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting that 2025 is expected to be a pivotal year as strategic initiatives begin to yield results [35] - The company is closely monitoring the competitive landscape, particularly regarding U.S.-based miners facing delays due to trade tensions, but has not experienced direct impacts [58][60] Other Important Information - The company has secured over 2.6 gigawatts of power capacity, with plans to energize about 1 gigawatt in 2025, which will support both self-mining and potential HPC and AI data center operations [33] - The company has a strong cash position with 476.3 million in cash and cash equivalents, and plans to continue holding a portion of mined Bitcoin [50] Q&A Session Summary Question: What is the impact of U.S.-China trade tensions on ASIC demand? - Management noted that they are monitoring the situation but have not faced direct impacts. They remain hopeful for a resolution that would allow them to explore the U.S. market [58][60] Question: What is the manufacturing capacity for the next batch of A2s and A3 rigs? - Management expects capacity to increase as they continue to work with TSMC, but specific pre-announcements will not be made until allocations are confirmed [62] Question: How is revenue recognized for ASIC sales? - Revenue is recognized upon delivery of the ASICs, with down payments held on the balance sheet until full delivery [65] Question: What is the CapEx outlook for 2025? - CapEx for 2025 is anticipated to be between 340millionto340 million to 370 million, primarily for Bitcoin mining infrastructure [53][70] Question: How does the company view partnerships for HPC development? - The company is open to strategic partnerships that add value, particularly for HPC opportunities [132]