Bitdeer, a leading Bitcoin mining firm, saw its Nasdaq stock price drop by 3.55% on Monday after the release of its second-quarter earnings report that revealed a net loss.
Bitdeer Shares Drop 3.5% After Posting Q2 Net Loss
The Singapore-based company reported a net loss of $17.7 million for Q2 2024, a significant improvement from the $40.4 million loss reported in the same quarter last year.
Despite the narrowing of losses, the company’s stock price closed at $7.61, marking a 3.55% decline on the day and bringing its market value to $1.04 billion. Bitdeer’s shares are down 14.3% year-to-date.
The company’s total revenue in the second quarter rose to $99.2 million, up from $93.8 million in 2023. Additionally, Bitdeer’s gross profit increased by 50.6% year-over-year to $24.4 million.
Bitdeer’s chief operating officer, Matt Kong, highlighted the firm’s performance amid challenging conditions, including a significant increase in global network hashrate and the April 2024 Bitcoin halving event.
“Our previous R&D investment in our Cloud Hashrate business contributed to $7.3 million in gross profit in Q2 with a gross margin of approximately 60%. This helped us generate more revenue for the same amount of hashrate compared to our peers,” Kong said.
The company is also advancing its technological capabilities, with plans to reach 3.4 EH/s at mine sites by the end of the year once SEALMINER A1 chips are energized.
In May, Bitdeer raised $100 million from a stock sale by signing a private placement agreement with stablecoin issuer Tether.
Despite these developments, Bitdeer's shares continue to face headwinds that reflect ongoing challenges in the cryptocurrency mining sector.
*This is not investment advice.