Bitdeer Technologies Group, a Singapore-based cryptocurrency mining company, announced a significant 41.3% drop in revenue for Q1 2025, falling to $70.1 million from $119.5 million in the previous year. The decrease was primarily driven by reduced hosting services revenue, expiration of cloud mining contracts, and a strategic shift towards self-mining operations.
Despite the revenue decline, Bitdeer reported a remarkable net income surge to $409.47 million, largely fueled by noncash gains from convertible notes and fair value derivative changes linked to Tether warrants and convertible debt instruments. These financial maneuvers underpin a complex economic landscape with investors questioning the sustainability of such gains amid core operational losses.
Operationally, the company faced a gross loss of $3.2 million and a negative gross margin of -4.6%, exacerbated by lower BTC mined (350 in Q1 vs 911 last year) despite a 44.8% increase in self-mining hashrate to 9.7 EH/s, supported by deployment of SEALMINER A1 and A2 mining rigs. The company has bolstered its Bitcoin holdings to 1,156 BTC compared to 58 BTC a year ago and aims to scale self-mining capacity to 40 EH/s by October 2025.
Bitdeer also ramped up research and development expenses to $59 million for SEALMINER chip development. Operating expenses doubled year-over-year to $75.8 million, reflecting broad cost pressures in the crypto mining industry amid market volatility and mining difficulty increases. The company’s stock price declined 2.56% post-earnings, continuing a downward trend over the last quarter.
The firm’s shift from hosting to self-mining and reliance on financial engineering raise concerns regarding operational resilience and long-term viability. Nevertheless, Bitdeer management remains focused on increasing mining efficiencies and exploring AI-related opportunities, despite short-term financial headwinds. Investor scrutiny persists given the contrasting financial results and questions concerning sustainable growth.