SINGAPORE - Bitdeer Technologies Group (NASDAQ: BTDR), a global technology firm specializing in blockchain and high-performance computing, has released its unaudited mining and operations update for August 2024. The company disclosed that it mined 166 Bitcoins through its self-mining operations, a decrease from previous months, attributing the reduction to higher network difficulty and temporary operational disruptions.
In the realm of hosting, Bitdeer reported a decrease of 45,000 client-hosted mining machines due to customer transitions and upgrades to its Texas facility, which is undergoing a 100 MW hydro-cooling conversion. The released capacity is expected to be refilled with new customers' miners and Bitdeer's SEALMINERs for self-mining starting September 2024 through the first quarter of 2025.
The company's SEALMINER A1 rigs are slated for mass production completion in the fourth quarter of 2024, with an anticipated contribution of 3.4 EH/s to Bitdeer's proprietary hashrate. The initial delivery of SEAL02 tape-out wafers from TSMC is on schedule for mid-September 2024, with verification and prototype testing to follow. If successful, mass production is planned to commence towards the end of 2024.
Bitdeer's AI cloud services, powered by NVIDIA (NASDAQ:NVDA) GDX (NYSE:GDX) SuperPod with H100 systems, maintained near 100% utilization for the month. The company is also continuing its research and analysis of global energy assets and datacenter sites through TLM Group.
Regarding datacenter construction, Bitdeer is progressing on several sites, with the Tydal, Norway, phase 1 site's 40 MW expansion and the Rockdale, Texas, 100 MW hydro-cooling conversion site both on track for phased completion from Q4 2024 to Q1 2025. The Jigmeling, Bhutan, 500 MW construction is also advancing, with the primary substation expected to be completed by Q1 2025.
In financial developments, Bitdeer successfully completed an offering of $172.5 million in 8.50% convertible senior notes due 2029, with proceeds intended for datacenter expansion, ASIC-based mining rig development, and general corporate purposes. Additionally, the company made a $5 million partial repayment of the outstanding principal balance of senior secured notes issued for previous acquisitions.
Linghui Kong, Chief Business Officer of Bitdeer, emphasized the importance of vertical integration and entry into the ASICs market with proprietary chip technology as part of the company's strategy.
This update is based on a press release statement from Bitdeer Technologies Group.
In other recent news, Bitdeer Technologies Group has announced plans to offer $150 million in convertible senior notes due 2029. The proceeds will be used to expand data centers and develop ASIC-based mining rigs, among other corporate purposes. The offering is managed by BTIG with A.G.P./Alliance Global Partners (NYSE:GLP) serving as co-manager.
In financial news, Bitdeer's second-quarter earnings report for 2024 showed a revenue of $99.2 million, below the consensus estimate of $108.4 million. Despite this, the company remains confident in its long-term strategy, which includes expanding self-mining operations and continuous technological innovation.
Several analyst firms have adjusted their price targets for Bitdeer. Rosenblatt Securities initiated coverage with a Buy rating and a 12-month target of $9.00. H.C. Wainwright lowered its target to $17 from $20, while B.Riley raised its target to $14.00. Cantor Fitzgerald and Benchmark set their targets at $15.00 and $16.00 respectively.
Bitdeer is also scaling up its self-mining activities with the SEALMINER and has announced plans for an additional 1.6 gigawatts of expansion. These are recent developments that reflect Bitdeer's ongoing efforts to expand its operations and enhance its technological capabilities.
InvestingPro Insights
As Bitdeer Technologies Group (NASDAQ: BTDR) navigates the challenges of cryptocurrency mining and operational disruptions, investors are closely watching the company's financial health and market performance. According to InvestingPro data, Bitdeer has a market capitalization of $804.59 million, reflecting its position in the market. Despite a challenging period with a one-month price total return of -19.84%, the company holds more cash than debt on its balance sheet, which is a positive sign for its financial stability.
InvestingPro Tips reveal that the stock's Relative Strength Index (RSI) suggests it is in oversold territory, potentially indicating an undervalued state that could interest value investors. Additionally, with analysts predicting the company will become profitable this year, there may be potential for a turnaround despite the stock's recent price decline.
For those considering an investment in Bitdeer, there are several more InvestingPro Tips available, offering deeper insights into the company's performance and prospects. As of now, there are an additional 11 InvestingPro Tips that can be accessed for Bitdeer at the InvestingPro platform.
The company's revenue growth over the last twelve months, as of Q2 2024, stands at 31.48%, showcasing its ability to increase sales amidst the dynamic and competitive blockchain industry. However, with a negative operating income margin of -4.36% and a P/E ratio of -34.97, investors may exercise caution and consider the company's long-term profitability and earnings potential.
For those interested in Bitdeer's future, the next earnings date is set for November 14, 2024, which will provide further insights into the company's operational and financial progress.
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