Bitdeer has seen increased activity in recent days as the company takes strategic steps in the face of declining revenues and continues to implement its long-term plans.
Singapore-based Nasdaq-listed Bitdeer acquired 100 bitcoins in two transactions this week. On February 25, it bought 50 BTC at $90,280 on the day it released its Q4 2024 financial results. On February 27, it purchased another 50 BTC at $81,475 each, for a total of $8,587,750. As of February 23, before making the purchases, Bitdeer had 911 BTC.
Bitdeer Takes Advantage of the Crash, Announces Buyback
On February 28, the company announced that it had completed its $9 million share repurchase program and was launching a new $20 million share repurchase program that will run through February 28, 2026. The new round of repurchases will be phased in and funded from the company's cash.
These moves come amid two quarters of declining revenue. Bitdeer Technologies Group, which includes Bitdeer AI, saw significant revenue growth in the first half of 2024. Total revenue in the first quarter was $119.5 million, up significantly from $72.6 million in the same quarter of 2023. It also posted a net profit of $600,000, compared to a net loss of $9.5 million a year earlier.
In the second quarter of 2024, revenue was $99.2 million, compared to $93.8 million in the second quarter of 2023. Net loss was $17.7 million, compared to $40.4 million a year earlier.
Halving and market trends have seriously affected Bitdeer
The fourth Bitcoin halving in April 2024, when the block reward was reduced from 6.26 BTC to 3.125 BTC, had a significant impact on the gross profit of the entire mining industry. Bitdeer's revenue fell to $62.0 million in Q3, down from $87.3 million a year earlier. In Q4, revenue was $69 million, down from $114.8 million in the same quarter of 2023. Net loss increased significantly to $531.9 million from $5.0 million in Q4 2023.
In a statement during the Q3 earnings release, Bitdeer Chief Business Officer Matt Kong attributed the decline to the halving, as well as an increase in global hashrate, a decline in hosting revenue, and one-time R&D costs.
Mining stocks also fell last month, in line with broader trends in the stock and crypto markets. The biggest loser was Bitdeer, which lost 55% of its value while the entire industry lost $13 billion.
Bitdeer Begins ASIC Development
The R&D costs Kong mentioned were related to the development of the SEAL02 chip. In June, the company released a roadmap for the development of an application-specific integrated circuit (ASIC). Also in June, Bitdeer paid $140 million in stock for the DesiweMiner chip it developed and integrated its employees into the Bitdeer ASIC development team.
At that time, the first generation SEAL01 had been released and was expected to enter mass production in the fourth quarter of 2024. SEAL02 was expected to be introduced in the third quarter of 2024, and SEAL03 in the fourth quarter of 2024. SEAL04 was planned for release in the second quarter of 2025 for mass deliveries in the fourth quarter of 2025.
At the time of writing, Bitdeer has reserved 1,380,679 units of its SEAL A2 model and plans to begin shipping in March.
Also this week, CEO Jihan Wu committed to sell up to 4 million shares of common stock between March and June 15, 2025, under a plan finalized in December. The company emphasized that the plan complies with the U.S. Securities and Exchange Commission's Rule 10b5-1, which covers insider trading.
Source: cryptonews.net
