Bitdeer (BTDR) Stock Crashes 25%: Reports $532M Q4 Loss While Developing Own ASIC Chips

TLDR

• Bitdeer reported a $532 million net loss in Q4, largely from ASIC development investments
• Revenue dropped 40% to $69 million compared to $115 million a year earlier
• The company aims to increase self-mining capacity to 40 EH/s by end of 2025
• Bitdeer began mass production of its SEALMINER A1 Bitcoin mining hardware
• Stablecoin giant Tether holds a 25% stake in Bitdeer

Bitdeer Technologies Group, the Singapore-based Bitcoin mining company, posted a steep fourth-quarter net loss of $531.9 million, compared to just $5 million in the same period a year earlier.

The company’s stock dropped about 28% following the news, hitting $9.49 per share, which is more than 64% below its December all-time high.

The large loss comes amid the company’s push to develop its own application-specific integrated circuits (ASICs), which are specialized chips designed for Bitcoin mining.

Bitdeer began mass production of its SEALMINER A1 Bitcoin mining hardware in the fourth quarter and is now in the final stages of designing its second and third generation mining chips.

Revenue for the fourth quarter came in at $69 million, marking a 40% decrease from $114.8 million in the same period last year. This decline affected all areas of the business, including self-mining, hosting, and cloud hash rate services. The Bitcoin halving event, which cuts mining rewards in half every four years, was cited as a factor in this revenue drop.

Research and development costs jumped to $23 million, up from $8.3 million a year ago. These higher costs are directly tied to the engineering work needed for the company’s ASIC development plans. The company sees this investment as a way to stand out in a market currently dominated by Bitmain’s Antminer products.

Matt Kong, Bitdeer’s Chief Business Officer, explained the company’s strategy, saying,

“While our focus on ASIC development temporarily limited hashrate expansion, we made progress in strengthening our technology roadmap. Owning our own ASICs allows us to rapidly deploy hashrate, lower cost and improve capital efficiency.”

Growth Plans for 2025

Despite the current losses, Bitdeer has big growth plans for 2025. The company aims to increase its self-mining capacity to 40 exahash per second (EH/s) by the end of the year. If achieved, this would place Bitdeer among the world’s largest Bitcoin mining operations.

The company also plans to more than double its power infrastructure. While its current capacity exceeds 2.6 gigawatts (GW), Bitdeer expects to bring over 1 GW of additional capacity online next year, adding to its current 900 megawatts (MW).

Bitdeer noted that it sees high demand for alternative ASIC suppliers in the market. Beyond crypto mining, the company is also looking to supply energy for AI data centers, hoping to benefit from the growing need for computing power.

Stablecoin issuer Tether holds a 25% stake in Bitdeer, making it the second-largest shareholder behind Victory Courage Ltd., which is registered to Bitdeer CEO Jihan Wu. Wu, who was appointed CEO in March 2024, was previously the co-founder and former CEO of ASIC manufacturer Bitmain.

The financial report also showed a $414 million loss due to changes in the value of convertible notes that Bitdeer issued last year. These are a form of company debt that can be converted into shares by the buyer. Additionally, warrants held by Tether, which allow the stablecoin company to purchase Bitdeer shares at a set price on a specific date, resulted in a $56 million loss due to value changes.

Despite these current challenges, Bitdeer’s stock has performed well over a longer timeframe, rallying 63% over the past year. The company hit an all-time high of $26.99 per share in January 2025, according to Yahoo Finance data.

Last November, when Bitcoin prices soared following Donald Trump’s presidential election victory, JP Morgan pointed to Bitdeer as a major beneficiary. During that month, the company’s stock price jumped by 83%, part of a broader rally that lifted many Bitcoin mining companies.

Bitdeer’s strategy represents a shift in approach within the Bitcoin mining industry. While most mining companies purchase their equipment from established manufacturers like Bitmain, Bitdeer is betting that developing its own mining chips will lead to better efficiency, lower costs, and a competitive edge.

The mining difficulty for Bitcoin reached an all-time high of 110.45 trillion in January 2025, according to data from CoinWarz. This means it’s harder than ever before to mine a new block, making energy efficiency and hardware optimization even more important for mining companies.

Bitdeer’s vertical integration approach, which includes owning and producing its own mining ASICs, aims to give the company more control over its supply chain. This could potentially help Bitdeer navigate the highly competitive and volatile Bitcoin mining landscape as the industry continues to evolve.

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