Bitdeer Technologies' stock experienced a sharp decline following the release of their Q4 2024 financial report, which highlighted significant losses.
Q4 2024 Financial Results
Bitdeer's Q4 2024 revenues totaled $69 million, down nearly 40% from the same period last year. Additionally, the company reported net losses exceeding $530 million compared to a $5 million loss in Q4 2023, according to their financial release. As a result, the company's stock fell from over $13.10 per share to around $9.30 per share during early trading on February 25.
Impact of Bitcoin Halving
The earnings miss is attributed to challenges faced by miners after the April 2024 Bitcoin network halving, which effectively halved mining revenues. Bitdeer's Chief Strategy Officer Harris Bassett noted that the lower performance was driven by the halving's impact, an increased global network hash rate, and higher research and development costs.
Bitdeer's Strategic Developments
Bitdeer aims to offset declining mining revenues by selling energy-efficient Bitcoin mining equipment, although sales are still ramping up. The company has prioritized the development of its own ASIC technology, which according to Bassett, provides significant future advantages. The market for specialized ASIC chips is estimated to total $4 billion–$5 billion.
Bitdeer's declining revenues and losses follow the challenging industry conditions post-Bitcoin halving and increased competition. The company plans to strengthen its market position with new technology.
