Bitdeer Technologies Group (NASDAQ:BTDR) shares gained 1.65% in pre-market trading on Monday despite the Bitcoin mining and AI infrastructure company reporting second-quarter earnings and revenue below Wall Street expectations.
The company recorded an adjusted loss of $0.37 per share, wider than the analyst estimate for a loss of $0.32 per share.
Revenue reached $228.8 million, narrowly missing the consensus forecast of $231.16 million. However, sales increased 47% year-on-year from $155.6 million in the corresponding quarter last year, supported by substantial expansion of Bitdeer’s mining operations.
Higher costs push Bitdeer to gross loss
Despite the strong increase in revenue, profitability was pressured by rising operating costs as Bitdeer continued expanding its mining infrastructure.
The company reported a gross loss of $8.5 million, compared with a gross profit of $12.0 million in the same quarter of the previous year.
Higher electricity expenses and increased depreciation associated with new mining rigs entering operation outweighed the benefit of stronger revenue during the period.
Adjusted EBITDA showed a significant improvement, however, climbing to $31.1 million from $4.6 million a year earlier.
The increase was primarily driven by substantially higher self-mining and co-mining hashrate following the deployment of Bitdeer’s SEALMINER fleet.
Bitcoin self-mining revenue surges
Self-mining revenue increased sharply to $168.4 million from $59.3 million in the prior-year period.
Average self-mining hashrate expanded 389.4% to 69.5 EH/s as additional SEALMINER equipment was brought online.
Bitdeer mined 2,694 Bitcoin during the quarter, a substantial increase from the 565 Bitcoin produced in the corresponding period last year.
The company also generated $25.0 million of new co-mining revenue, providing another source of growth within its cryptocurrency infrastructure operations.
AI Cloud business continues rapid expansion
Alongside the expansion of its Bitcoin mining operations, Bitdeer continued to build its AI infrastructure business.
AI Cloud revenue climbed to $14.0 million from just $1.3 million in the same quarter last year, although it remains considerably smaller than the company’s core mining activities.
“The second quarter reflected steady progress across our platform,” said Michael G. Potter, Chief Financial Officer. “Our AI Cloud revenue continues to scale, alongside our mining business as our SEALMINER fleet comes online.”
Bitdeer ends quarter with nearly $500 million in cash
Bitdeer finished the second quarter with $496.3 million in cash and cash equivalents and a further $196.9 million in digital assets.
Borrowings stood at $1.8 billion at the end of the period.
While both earnings and revenue fell short of analyst expectations, the modest positive reaction in Bitdeer shares suggests investors focused on the 47% revenue increase, rapid expansion in mining capacity, stronger adjusted EBITDA and continued growth of the company’s AI Cloud business.
Bitdeer stock price
