Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for the cryptocurrency mining community, today announced its financial results for the year ended December 31, 2022.
Full Year 2022 Financial and Operational Highlights
- Total revenue was $333.3 million in 2022, compared to $394.7 million in 2021, primarily due to a decrease in revenue generated from proprietary mining, sales of mining machines, and Cloud Hash Rate, partially offset by an increase in revenue generated from three types of hosting services, which was partially driven by an expansion of the Company’s mining datacenter operations.
- Net loss was $60.4 million in 2022, compared to a net profit of $82.6 million in 2021.
- Adjusted profit1 was $30.3 million in 2022, compared to $171.0 million in 2021.
- Adjusted EBITDA2 was $93.2 million in 2022, compared to $281.8 million in 2021, primarily due to a decrease in revenue, an increase in electricity cost in operating and hosting mining machines, a decrease in gain on disposal of cryptocurrencies, and an increase in operational expenses.
- Managing hash rate was 14.0 exahash per second (“EH/s”) as of December 31, 2022, a 72.8% increase from 8.1EH/s as of December 31, 2021.
- Electricity capacity was 775MW as of December 31, 2022, a 92.8% increase from 402MW as of December 31, 2021.
Linghui Kong, Chief Executive Officer of Bitdeer, said, “Despite the volatility in cryptocurrency prices and temporary dislocation in the crypto industry, we bucked the trend and achieved a positive adjusted net profit and a positive adjusted EBITDA in the full year of 2022, thus demonstrating the viability and resilience of our business model. We successfully expanded our infrastructure to 775 megawatts in electricity capacity in 2022, and plan to increase our scale even further to up to 1,524 megawatts in the future. Meanwhile, through prudent expense management, we maintained an abundant capital reserve as of the end of 2022, including $231.4 million in cash and cash equivalents and $31.1 million in fiat currency investment redeemable on demand. Becoming a public company in the United States on April 14, 2023 marks the beginning of a new journey for us, a journey we plan to traverse with renewed energy, sharpened vision, and unwavering commitment to generating lasting value for our shareholders.”
Full Year 2022 Financial Results
Revenue
Total revenue was $333.3 million, compared to $394.7 million in the full year of 2021.
- Revenue from proprietary mining business was $62.4 million, compared to $191.7 million in the full year of 2021, primarily due to the price drop of Bitcoin and a decrease in the comparative number of Bitcoin mined from proprietary mining, resulting from a decrease in the amount of hash rate allocated to the Company’s proprietary mining business as a percentage of the total network hash rate.
- Revenue from Cloud Hash Rate was $121.3 million, compared to $124.2 million in the full year of 2021, primarily due to increases in revenue from hash rate subscription and revenue from electricity subscription, offset by a decrease in revenue from additional consideration from acceleration plan arrangements.
- Revenue from Cloud Hosting was $12.7 million, compared to $7.6 million in the full year of 2021, primary because nearly half of Cloud Hosting orders in 2021 were subscribed in the second half of 2021, which contributed to the revenue in 2022, while nearly all Cloud Hosting orders in 2022 contributed to the revenue in 2022.
- Revenue from General Hosting was $99.3 million, compared to $18.3 million in the full year of 2021, primarily due to an increase in the mining site capacity as a result of the expansion of the Company’s mining datacenter operations.
- Revenue from Membership Hosting was $26.1 million, compared to nil in the full year of 2021, primarily due to revenue generated from the Company’s North America mining datacenter, which began to deliver capacity in the second half of 2022.
- Revenue from sales of mining machines was $0.7 million, compared to $45.7 million in the full year of 2021. The Company currently does not expect to sell mining machines in the near-future.
Gross Profit
Gross profit was $83.3 million in the full year of 2022, representing a 25.0% gross margin, compared to $241.4 million, or a 61.2% gross margin, in the full year of 2021, mainly due to a decrease in total revenue and an increase in electricity cost and staff costs.
Operating Expenses
The sum of below operating expenses in the full year of 2022 was $140.6 million, as compared to $127.7 million in the full year of 2021.
- Selling expenses were $11.7 million, compared to $8.4 million in the full year of 2021, primarily due to increases in share-based compensation and other staff costs to sales personnel.
- General and administrative expenses were $93.5 million, compared to $89.7 million in the full year of 2021, primarily due to increases in operations expenses and staff costs to general and administrative personnel.
- Research and development expenses were $35.4 million, compared to $29.5 million in the full year of 2021, primarily due to increases in share-based compensation and staff costs to research and development personnel.
Net Loss
Net loss was $60.4 million, compared to a net profit of $82.6 million in the full year of 2021.
Adjusted Profit (Non-IFRS)
Adjusted profit was $30.3 million, compared to $171.0 million in the full year of 2021.
Adjusted EBITDA (Non-IFRS)
Adjusted EBITDA was $93.2 million, compared to $281.8 million in the full year of 2021, primarily due to a decrease in revenue, an increase in electricity cost, a decrease in gain on disposal of cryptocurrencies, and an increase in operational expenses.
Liquidity
As of December 31, 2022, the Company held $231.4 million in cash and cash equivalents, as compared to $372.1 million as of December 31, 2021. Use of cash included active construction of mining datacenters in North America and Norway, purchase of investment property assets through the acquisition of Asia Freeport Holdings Pte. Ltd, and investment in unlisted equity and debt instruments. As of December 31, 2022, the Company also held a fiat currency investment of $31.1 million in unlisted debt instruments, redeemable on demand.
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for the cryptocurrency mining community headquartered in Singapore. Bitdeer has committed to providing comprehensive digital asset mining solutions for its customers. Bitdeer handles complex processes involved in mining such as miner procurement, transport logistics, mining datacenter design and construction, mining machine management and daily operations. Bitdeer has mining datacenters deployed in the United States and Norway. To learn more, visit https://ir.bitdeer.com/.
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