Bitdeer Stocks Plummet Amid Major Loss in Q4

The Singapore-based Bitcoin miner Bitdeer experienced a significant stock drop on Tuesday after announcing a fourth-quarter loss of $532 million as it develops proprietary mining chips.

The company’s share price declined by 20%, reaching a three-month low of approximately $11.50 on the Nasdaq by Tuesday morning (New York Time).

Despite reporting that its power capacity surpassed 2.6 gigawatts (GW) in the fourth quarter, Bitdeer is taking a unique approach to manage its energy-intensive mining rigs, which are crucial for crypto transactions and earning Bitcoin block rewards.

Bitdeer is creating its own line of application-specific integrated circuits (ASICs), tailored for Bitcoin mining. The firm announced it began mass production of its SEALMINER A1 Bitcoin mining hardware in the fourth quarter.

The company’s fourth-quarter revenue fell to $69 million from $115 million the previous year, heavily influenced by Bitcoin’s halving, a preprogrammed event that reduces Bitcoin rewards by half approximately every four years.

In a market largely dominated by Bitmain’s antminers, Bitdeer aims to become a leading supplier of energy-efficient mining ASICs. The company mentioned it is in the final design stages for its second and third generation of mining chips in the fourth quarter.

Research and development costs surged to $23 million, up from $8.3 million a year ago, attributed to escalating engineering costs related to its ASIC development roadmap.

Although the company’s financial performance has been adversely affected by the proprietary chip development, Bitdeer’s Chief Business Officer, Matt Kong, stated that this initiative has “strengthened our competitive moat” over other Bitcoin mining firms.

“Owning and deploying our own mining ASICs is a critical component of our full vertical integration strategy,” he noted, emphasizing a significantly improved supply chain relative to the broader industry.

Additionally, Tether, the stablecoin giant, holds a 25% stake in Bitdeer, as per an SEC filing from last June, when Bitdeer’s stock was trading at around $7.15.

On Tuesday, Bitdeer revealed a $414 million loss due to fluctuations in the value of convertible notes issued last year. These convertible notes represent company debt that can be converted into shares by a buyer, backed by the Bitcoin-buying strategy firm.

Furthermore, warrants with Tether, allowing the stablecoin giant to purchase Bitdeer shares at a designated price on specified dates, resulted in a $56 million loss due to their devaluation.

As Bitcoin prices soared last November following President Donald Trump’s White House win, JP Morgan identified Bitdeer as a significant beneficiary, with its stock price surging 83% that month, reflecting a strong performance among Bitcoin miners.

Despite challenges from the halving, Bitdeer’s stock has increased by 63% over the past year, reaching an all-time high of $26.99 per share in January, according to Yahoo Finance.

Edited by Stacy Elliott.