Singapore-based crypto miner Bitdeer has experienced a difficult start to life as a public company, with its shares plunging over 35% since its debut on the Nasdaq on April 14. The company reported a net loss for 2022 on April 20.
Net loss reported for 2022
On April 20, Bitdeer announced a net loss of $60.4 million for 2022 compared to a net profit of $82.6 million in the prior year. The company has attributed its loss to a decline in income from its primary mining operations and sales of mining machines.
The mining firm faced a 15.6% decline in revenue from its main mining operations and sales of mining machines, resulting in a total revenue of $333.3 million for the year, according to the latest earnings report.
Bitdeer was created after one of the co-founders of the world’s largest rig manufacturer, Bitmain, left and took Bitdeer with him. The firm operates six mining sites across Washington state, Texas, Tennessee, and Norway, with a total energy capacity of 775 MW as of the end of 2022.
Its hashrate at the end of January 2023 was 16.2 exahash per second, making it the second-largest miner after bankrupt Core Scientific.
The mining firm merged with a special purpose acquisition company (SPAC), Blue Safari Group Acquisition Corp., on April 13 to achieve a valuation of $1.18 billion.
Bitdeer keeps one-quarter of its computing power for self-mining, while the rest is used for cloud mining. In cloud mining, customers rent their machines and receive rewards from the mined cryptocurrency.
In 2022, the company recorded $30.3 million in adjusted profit, down from $171 million in 2021, and booked $93.2 million in adjusted EBITDA, down from $281.8 million in 2021.
Bitdeer optimistic despite recent losses
Bitdeer’s CEO, Linghui Kong, has stated that the firm plans to increase its electricity capacity achieved in 2022 from 775 MW to as much as 1,524 MW. However, Kong did not provide a timeline for this expansion.
Despite the volatility in cryptocurrency prices and a temporary dislocation in the crypto industry, Kong stated that the firm’s positive adjusted net profit and EBITDA in 2022 demonstrate the viability and resilience of its business model.