Bitdeer Reports Unaudited First Quarter 2024 Financial Results and Operational Update

SINGAPORE, May 13, 2024 — Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a leading technology company for blockchain and high-performance computing, today announced its unaudited financial results for the first quarter ended March 31, 2024.

Q1 2024 Financial Highlights

• Total revenue was US$119.5 million, compared to US$72.6 million in Q1 2023.
• Net income was US$0.6 million, compared to a net loss of US$9.5 million in Q1 2023.
• Adjusted profit was US$8.4 million, compared to US$2.8 million in Q1 2023.
• Adjusted EBITDA was US$26.0 million, compared to US$18.5 million in Q1 2023.
• Cash and cash equivalents were US$118.5 million as of March 31, 2024.

Linghui Kong, Chief Business Officer of Bitdeer, commented, “We sustained our growth momentum in the first quarter of 2024, as we increased our total revenue by 64.6% on an annual basis and generated a net income of US$0.6 million, despite incurring a US$14.1 million one-off incremental development expense related to our SEAL01 chip. During the first quarter we mined 911 Bitcoins, representing an increase of 65.0% from a year ago. Our strategic plan to expand our hash rate by approximately 3.4EH/s by the end of this year remains on course, and we are making steady progress with the manufacturing of our SEALMINER A1 rigs. We expect that trial production will start in May 2024. By deploying the mining machines produced during trial production to our own datacenters for self-mining, we can field test them to ensure their stability and optimal product quality for our customers. At the same time, our teams have continued development of our next generation of mining rigs. Designs for the second-generation machines are advancing, with tape out potentially commencing in the second quarter of this year and wafer ordering for mass production potentially beginning in the third quarter of this year. We anticipate that these next generation miners will deliver even greater efficiency than their predecessors.”

“In the meantime, we continue to develop our AI cloud service. The significant interest we are observing in the space reaffirms our confidence in its potential for growth. In terms of our infrastructure, construction of our Jigmeling datacenter in Bhutan started during the first quarter of 2024. Notably, we remain on track to complete expansion of our mining facilities in Norway, the United States, and Bhutan in 2025. In addition, we are actively working to further reduce our energy costs. We have already secured an electricity price of approximately $0.0425 per kWh for the remainder of the year from April in Bhutan, and we are collaborating with energy experts and strategists to lower costs in our Norway, Texas, and Ohio datacenters. Looking ahead, we will continue to execute on our strategy to deliver diversified, long-term business growth.”

The majority of the Company’s revenue is derived from its three distinct business lines:

• Self-mining refers to cryptocurrency mining for the Company’s own account, which allows it to directly capture the high appreciation potential of cryptocurrency.
• Hash Rate Sharing currently primarily includes Cloud Hash Rate, in which the Company offers hash rate subscription plans and shares mining income with customers under certain arrangements.
• Hosting encompasses a one-stop mining machine hosting solution including deployment, maintenance, and management services for efficient cryptocurrency mining.

Financial Highlights

• Total revenue was US$119.5 million in the first quarter of 2024, compared to US$72.6 million in the corresponding period of 2023, primarily due to the increase in revenue generated from the Company’s self-mining business as a result of the increased self-mining hash rate and increased Bitcoin production, coupled with a higher average Bitcoin price during the period. The Company’s increased hosting capacity also led to an increase in revenue generated from hosting services.
• Net income was US$0.6 million in the first quarter of 2024, compared to a net loss of US$9.5 million in the corresponding period of 2023. Net income in the first quarter of 2024 was primarily driven by gross profit of US$34.1 million through the Company’s principal business and gain on disposal of cryptocurrencies of US$3.1 million, partially offset by operating expenses of US$37.8 million, which included a US$14.1 million one-off incremental development expense related to the SEAL01 chip. Net loss in the first quarter of 2023 was primarily driven by share-based payment expenses of US$12.3 million.
• Adjusted profit was US$8.4 million in the first quarter of 2024, compared to US$2.8 million in the corresponding period of 2023. Adjusted profit/(loss) is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as profit/(loss) adjusted to exclude share-based payment expenses under IFRS 2.
• Adjusted EBITDA was US$26.0 million in the first quarter of 2024, compared to US$18.5 million in the corresponding period of 2023. Adjusted EBITDA is a non-IFRS financial measure and is used by the Company as a supplemental measure to review and assess the Company’s operating performance and is defined as earnings before interest, taxes, depreciation and amortization, further adjusted to exclude share-based payment expenses under IFRS 2.
• Cash and cash equivalents were US$118.5 million as of March 31, 2024.
• Total Borrowings were US$22.7 million as of March 31, 2024.

Operational Highlights