Bitdeer Technologies Group has reported a massive $531.9 million net loss for the fourth quarter of 2024, a stark contrast to the $5 million loss in Q4 2023. The company’s total revenue for the period also saw a significant decline, dropping from $114.8 million in Q4 2023 to $69 million in Q4 2024.

The downturn is attributed to heavy investments in developing proprietary application-specific integrated circuit (ASIC) technology, which temporarily slowed Bitdeer’s hashrate expansion. Despite these financial setbacks, the company still holds $476.3 million in cash and cash equivalents as of December 31, 2024.

Bitdeer’s Path to 40 EH/s Hashrate

In 2025, Bitdeer plans to activate its SEALMINER A1s and deploy 28 exahashes per second (EH/s) of SEALMINER A2s, aiming for a total self-mining hashrate of approximately 40 EH/s by Q4 2025. This strategy is part of the company’s efforts to vertically integrate and enhance its position in the blockchain and high-performance computing industries.

The planned hashrate expansion is seen as a long-term investment that could boost Bitdeer’s competitiveness in the rapidly evolving crypto mining sector.

However, the company’s stock price (BTDR) has taken a hit, trading at $9.10, marking a 30% decline on the day. This drop reflects investor concerns over widening losses and uncertainties in the mining industry.

Bitcoin Mining Industry Faces New Challenges

Bitdeer’s struggles are not isolated—many bitcoin miners are facing similar financial pressures, particularly after the April 2024 Bitcoin halving event, which reduced the daily mining rewards from 900 BTC to 450 BTC.

This has led to a surge in the cost of mining:

• The average cost to produce one bitcoin for U.S.-listed miners climbed to $55,950 in Q3 2024.
• Factoring in depreciation and stock-based compensation, some estimates push this figure to $106,000 per BTC.

As mining profits decline, companies are seeking alternative revenue streams. Some firms, including Crusoe Energy, have started pivoting toward artificial intelligence (AI) data center leasing, a trend that Bitdeer is also exploring.

AI and Energy Growth: Bitdeer’s Recovery Plan

Despite the record loss, Bitdeer remains focused on long-term growth. The company’s 2.6-gigawatt power expansion and plans to build AI data centers could help drive a financial turnaround. By diversifying into AI infrastructure, Bitdeer aims to offset declining bitcoin mining profits and capitalize on the growing demand for high-performance computing power.

This strategy could prove crucial as traditional bitcoin mining faces increasing regulatory scrutiny, energy costs, and profitability challenges.

Crypto Market Outlook and Analyst Insights

While mining difficulties are mounting, some analysts remain bullish on the sector.

Notably, H.C. Wainwright analysts recently stated that Q4 2024 was a strong quarter for bitcoin miners. The cryptocurrency surpassed $100,000 for the first time, driven by:

• Increased institutional adoption
• Pro-crypto policies under President Donald Trump’s administration