Bitdeer Technologies Group (BTDR) Q2 2025 Earnings Call Highlights: Revenue Surge Amidst Challenges

Total Revenue: $155.6 million, up 122% sequentially from Q1 and 57% year over year. Gross Profit: $12.8 million. Adjusted EBITDA: $17.3 million, improved from Q1. Self-Mining Revenue: $59.3 million, up 42.5% year over year and 59.4% sequentially. Palmer Sales Revenue: $69.5 million, compared to $0 in Q2 2024. Gross Margin: 8.2%, compared to 24.6% in Q2 2024 and negative 4.6% in Q1 2025. Total Operating Expenses: $42.3 million, compared to $26.1 million in Q2 2024. Net Income (IFRS): Negative $147.5 million. Adjusted Profit: Negative $24.4 million. Net Cash Used for Operating Activities: $334.9 million. Net Cash Generated from Financing Activities: $431.5 million. Cash and Cash Equivalents: $299.8 million at the end of the quarter. Cryptocurrencies: $169.3 million, accounted under IFRS rules. Borrowings: $533.1 million, excluding derivative liabilities.

Warning! GuruFocus has detected 5 Warning Signs with BTDR.

Release Date: August 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Bitdeer Technologies Group (NASDAQ:BTDR) reported a significant increase in total revenue, reaching $155.6 million in Q2 2025, up 122% sequentially from Q1 and 57% year over year. The company achieved a substantial growth in self-mining hash rate, increasing by 162% from the beginning of the year to 22.3 exahash by the end of July. Bitdeer Technologies Group (NASDAQ:BTDR) successfully sold and shipped 5.3 exahash of its steel miner A2 mining rigs to external customers, generating $69.5 million in revenue. The company is on track to achieve its target of 40 exahash of self-mining hash rate by the end of October 2025, with expectations to exceed this target by year-end. Bitdeer Technologies Group (NASDAQ:BTDR) has made significant progress in its R&D efforts, with the development of the CLO4 chip, which is expected to set a new standard for Bitcoin mining efficiency.

Negative Points

Despite the revenue growth, Bitdeer Technologies Group (NASDAQ:BTDR) reported a negative IFRS net income of $147.5 million for Q2 2025. The company's gross margin decreased year over year, primarily due to the April 2024 halving event's impact on self-mining and higher mining difficulty. Bitdeer Technologies Group (NASDAQ:BTDR) experienced a decline in cloud hash rate revenue, which was $0 in Q2 2025 compared to $12.2 million in Q2 2024. The company faced higher operating expenses, totaling $42.3 million in Q2 2025, driven by increased R&D costs and general administrative expenses. Bitdeer Technologies Group (NASDAQ:BTDR) reported a net cash outflow from operating activities of $334.9 million, primarily due to payments for seal miner wafers and related production costs.

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Q & A Highlights

Q: Can you provide details on the data center opportunity at the Clarington site and whether similar opportunities exist at other sites like Rockdale and Norway? A: The focus is currently on the Clarington site, with minimal capital requirements expected from Bitdeer, as the partner and construction loans will provide funding. There are also inbound requests for Norway and Rockdale, but discussions are less advanced compared to Clarington. (Haris Basit, Chief Strategy Officer)

Q: How is Bitdeer managing the balance between self-mining and external sales of mining rigs, especially with the new A3 chip? A: Bitdeer is prioritizing internal use to avoid idle capacity and capitalize on high self-mining margins. As internal capacity fills up, there will be a transition to more external sales. Long-term, the goal is to be a major vendor in the market. (Haris Basit, Chief Strategy Officer)

Q: What is the outlook for ASIC prices and how does the A3 chip compare to competitors in terms of pricing? A: Pricing for the A3 chip has not been set yet, but it will be higher than the A2 due to its efficiency. The company aims to remain competitive in pricing, though the initial focus is on internal use rather than external sales. (Haris Basit, Chief Strategy Officer)

Q: What is the strategy for using Bitcoin on the company's balance sheet, and how does it align with Bitdeer's financial goals? A: Bitdeer follows a balanced approach, selling some Bitcoin to maintain a healthy balance sheet while holding some for long-term value appreciation. The strategy is to ensure financial stability while capitalizing on Bitcoin's potential growth. (Jihan Wu, Chairman and CEO)

Q: Can you provide more information on the advanced negotiations for the Clarington site and the potential for the A4 chip's application beyond Bitcoin mining? A: Advanced negotiations involve final legal documents and due diligence, with an announcement expected soon. The A4 chip, particularly the new technology version, may have applications in energy-intensive digital computing, though adoption for non-Bitcoin uses is a few years away. (Haris Basit, Chief Strategy Officer)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.