Shares of Singapore-based bitcoin miner Bitdeer fell on Tuesday after the company posted a $532 million loss for the fourth quarter amid efforts to develop its own mining chips.
By Tuesday morning New York time, the company's shares had fallen 20%, hitting a three-month low of about $11.50 on the Nasdaq.
Although the company reported more than 2.6 gigawatts (GW) of power in the fourth quarter, the firm has a special strategy for its power-hungry machines. These devices, used by crypto miners, are designed to perform the complex calculations needed to verify transactions and earn Bitcoin block rewards.
Bitdeer is developing its own series of application-specific integrated circuits (ASICs) aimed at Bitcoin mining. In the fourth quarter, the company announced the launch of mass production of the SEALMINER A1 Bitcoin mining hardware.
The company's revenue for the fourth quarter was $69 million, down significantly from $115 million a year earlier. Bitdeer noted that the numbers were significantly impacted by last year's Bitcoin halving, a scheduled event that reduces the rewards for Bitcoin roughly every four years.
In a field dominated by Bitmain's anti-miners, Bitdeer believes it can become “the world's leading power-efficient ASIC mining company.” In Q4, the company indicated it had reached the final stages of development for its second- and third-generation mining chips.
The company reported research and development expenses of $23 million, up from $8.3 million a year earlier, citing increased design costs driven by its ASIC development roadmap.
While the company's financial results were hurt by the development of its own bitcoin mining chips, Bitdeer's chief commercial officer Matt Kong said the move “strengthened our competitive advantage” over other players in the bitcoin mining space.
“Owning and operating our own ASIC miners is a critical part of our strategy of full vertical integration,” he said in a press release, highlighting “significant supply chain improvements compared to the broader industry” as one of the key benefits.
Meanwhile, stablecoin giant Tether owns a 25% stake in the Singapore-based mining company, according to an SEC filing last June. At the time, Bitdeer shares were trading at around $7.15.
Bitdeer reported a $414 million loss on Tuesday, driven by changes in the value of convertible bonds issued last year. Convertible bonds, used by bitcoin-buying firm Strategy, represent company debt that an investor can convert into shares.
Bitdeer also said that so-called Tether orders, which allow the stablecoin giant to purchase Bitdeer shares at a fixed price on a specific date, resulted in a $56 million loss due to changes in their value.
When the price of Bitcoin soared last November following President Donald Trump’s election victory, JP Morgan singled out Bitdeer as one of the main beneficiaries. The company’s stock price increased 83% that month amid strong performance by other Bitcoin miners.
Despite the halving’s challenges, Bitdeer shares have risen 63% over the past year. In January, the miner’s shares hit a record high of $26.99 per share, according to Yahoo Finance.
Edited by Stacey Elliott.
Source: cryptonews.net
