SINGAPORE - Bitdeer Technologies Group (NASDAQ: BTDR), a global technology firm specializing in blockchain and high-performance computing, has reported its operational updates for October 2024, including the commencement of mass production for its latest mining rigs and the anticipated mass production of additional mining capacity.
The company has started mass production of its SEALMINER A1 and A2 mining machines. The SEALMINER A1 is on track to deliver approximately 3.7 EH/s of units by January 2025, with some machines already on route to data centers and others in production. The SEALMINER A2 models, which have completed final testing and demonstrated efficiencies of 226 TH/s and 446 TH/s for air and hydro-cooling versions respectively, are expected to contribute approximately 18 EH/s to Bitdeer's operations, serving both internal needs and external customers.
Furthermore, Bitdeer's SEAL03 chip has successfully completed its initial tape out in October, targeting an efficiency of 10 J/TH, with sample wafers anticipated in Q2 2025.
In its hosting services, Bitdeer has increased client-hosted mining machines by 3,000 units, adding roughly 0.8 EH/s to its capacity. The company's self-mined Bitcoin for October stood at 174 units.
Construction updates for Bitdeer's datacenters include the Tydal, Norway site's expansion, which remains on track to be energized in December 2024. However, the Rockdale, Texas site is experiencing a hydro-cooling conversion delay due to a US dock workers strike in early October, with completion now expected in Q1 2025. The Jigmeling, Bhutan site is progressing well, with major construction milestones anticipated to be completed by Q1 2025.
Linghui Kong, Chief Business Officer of Bitdeer, stated that the company is making significant strides in its ASIC technology roadmap and is committed to maintaining transparency with stakeholders. Looking ahead, Bitdeer aims to enter the ASIC market in 2025 and is already engaged with potential customers, indicating strong market interest.
These updates are based on a press release statement from Bitdeer Technologies Group.
In other recent news, Bitdeer Technologies Group has seen a number of significant developments. B.Riley has revised its price target for Bitdeer, reducing it to $12 while maintaining a Buy rating. The company reported a slight decrease in BTC production in September, with a modest increase in operational hash rate. Bitdeer is also planning to boost its proprietary hash rate with its SEALMINER A1, set for mass production in the fourth quarter of 2024.
Furthermore, Bitdeer's AI Cloud services continue to operate at near full capacity, and the company is exploring potential for Tier 3 HPC/AI development at its Ohio sites. Analyst firm Northland initiated coverage of Bitdeer with an Outperform rating, emphasizing the company's shift towards high-performance computing and artificial intelligence. However, Bitdeer's recent earnings report showed revenues of $99.2 million, falling short of the consensus estimate of $108.4 million.
Roth/MKM maintained a positive stance on Bitdeer, highlighting the potential of the company's HPC capabilities, which could generate $850 million in annual recurring revenue. Bitdeer also completed an offering of $172.5 million in convertible senior notes due 2029. These recent developments reflect Bitdeer's ongoing efforts to expand its operations and enhance its technological capabilities.
InvestingPro Insights
As Bitdeer Technologies Group (NASDAQ: BTDR) advances its operational capabilities and expands its mining capacity, it's crucial to consider the company's financial position and market performance. According to InvestingPro data, Bitdeer's market capitalization stands at $1.15 billion, reflecting its significant presence in the blockchain and high-performance computing sector.
The company's revenue growth is noteworthy, with a 31.48% increase over the last twelve months as of Q2 2024, reaching $420.89 million. This aligns with Bitdeer's reported operational expansions and the commencement of mass production for its new mining rigs. However, investors should be aware that the company is currently not profitable, with an operating income margin of -4.33% over the same period.
InvestingPro Tips highlight that Bitdeer holds more cash than debt on its balance sheet, which could provide financial flexibility as it pursues its ambitious growth plans. This is particularly important given the capital-intensive nature of expanding mining operations and developing new ASIC technologies. Additionally, the company's stock has shown a large price uptick over the last six months, with a 33.73% total return, potentially reflecting market optimism about its future prospects.
It's worth noting that Bitdeer's stock price movements are quite volatile, which is consistent with the dynamic nature of the cryptocurrency mining industry. Investors should consider this volatility in the context of the company's ongoing expansion efforts and the broader crypto market conditions.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Bitdeer, providing deeper insights into the company's financial health and market position.
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